Andy Bell says “Very few of the largest DIY platforms offer a CTF whereas the Junior ISA market is hugely competitive. This move will allow savers to consolidate family savings, significantly reducing costs and the time it takes to manage their investments. Encouraging more people to save more for their children will provide a head start in funding the costs of a university education or a deposit on their first home, and will hopefully impress on them the importance of building savings rather than debt. We have seen a massive uptake in JISAs since they were launched last year and the consultation to allow Child Trust Funds (CTF) to transfer to Junior ISAs is welcome, if a little overdue.”
Andy Bell says “I would urge the Government to exercise extreme caution given our experience in the period running up to pensions simplification. Allowing residential property in SIPPs and SSASs has the potential to be a minefield, even if it is restricted to the conversion of unused commercial space as the Treasury note indicates.”
Andy Bell says “Whilst I think this review is more of a maintenance job, if it does result in a fundamental review it would vindicate the work I have been undertaking for the last couple of years. A review is long overdue as any link to a particular investment sector is flawed. I hope that this will not just see a reduction in the existing GAD factors which lessens the welcome reinstatement of the 20% uplift in GAD rates.”
Andy Bell says “The combination of abolishing SDRT with allowing AIM shares to be held in ISAs is going to open up a significant investment market to a number of growing companies. Our experience in the DIY SIPP market has shown how popular these shares are with a wide range of investors. We expect a surge in that popularity once the AIM restrictions are removed and the cost of investing goes down.”