View more on these topics

Tax changes hit Isas with first net outflow

Isa sales slumped in Sept-ember to show a net outflow for the first time since their introduction in 1999, according to IMA figures.

A net Isa outflow of £23.5m followed the lowest recorded inflow of £25m in August. Isas saw a net inflow of £259.5m in September last year.

Gross sales fell from £442m in September 2003 to £349m last month.

The IMA says the outflow is due to tax benefits removed from Isas in the last Budget. It is matched by an overall drop-off in retail sales of investment products.

In September 2003, £558.9mworth of investment funds were sold compared with £265.8m last month.

Intermediaries were res-ponsible for 74 per cent of gross retail sales, with UK all companies the most popular sector.

The number of regular savings plans fell to 1.56 million in the third quarter from 1.6 million in the second quarter. Isa plans also fell by 2 per cent in the third quarter to 1.3 million.

Chief executive Richard Saunders says: “Despite stronger markets in September, investor confidence remains low. The first net outflow we have recorded from Isas shows that efforts to attract investors back to the market are not yet succeeding.

“The reasons are many and complex but are likely to inc-lude continuing uncertainty about investment prospects, higher interest rates and red-uced tax benefits.”

Recommended

First4Brokers acquires Mandeville Ltd

First4Brokers, the independent mortgage compliant network has completed its acquisition of Mandeville Ltd, the electronic business to business service. Mandeville provides insurance products and services to mortgage brokers and IFAs. First4Brokers will now be able to deliver a range of electronically delivered general insurance schemes to its full members and firms that are directly authorised […]

Bond failings cost Capita £300k fine

The FSA has hit Capita Trust Company, formerly Royal & Sun Alliance Trust Company, with a £300,000 fine for misselling precipice bonds. It says the company advised a total of around 500 clients to invest in a variety of precipice bonds between June 1997 and September 2002 and these clients suffered losses which totalled around […]

CBI calling for a moratorium on financial services regulation

The CBI is calling for a moratorium on financial services regulation. Companies are being battered by a tidal wave of regulation, which threatens to undermine the sector&#39s contribution to the economy according to its latest report. The CBI reveals widespread industry concern over how European regulation is implemented. The FSA responded that its approach is […]

Pru polarises views

Prudential has shown its hand on its multi-tie strategy in dramatic fashion with its move to add Millfield to Sesame in its list of strategic partners. Pru says it will offer more commission and multi-ties could get better deals on PI and compensation scheme levies. The numbers may begin to tempt many advisers. Others are […]

Natixis video: Making smarter use of asset classes

Content supplied by Natixis Global Asset Management This video from Natixis Global Asset Management focuses on Active Share. One strategy for the smarter use of equity investments is ensuring you get what you pay for. According to the company, looking at Active Share can give you a better perspective on where performance comes from. Active […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com