PIMA WELCOMES SANDLER ISA BUT CALLS FOR NEW THINKING ON PRICE AND EQUITY CAPS
The PEP and ISA Managers’ Association today welcomed the Treasury announcement on Sandler investment products creating a lighter touch sales process.
PIMA has three key views on the outcome of the Sandler consultation:
PIMA welcomes the inclusion of cash-ISAs within the Sandler suite as part of the short-term investment product range.
PIMA wants to see the full range of CAT standard equity ISAs open to investors in order to take advantage of any stockmarket upturn
PIMA wants to ensure the economic viability of Sandler suite products and calls for the Government to re-open consultation on the structure and extent of pricing caps
On the Child Trust Fund (CTF):
PIMA looks forward to the main announcement on the CTF which has been delayed until September.
PIMA is pleased that the Treasury has yet to propose investment products for the CTF, and that today’s announcement does NOT mean that the three Sandler stakeholder products will constitute the investment vehicles for the CTF. PIMA hopes that these will be based on the CAT-marked ISA range of products and ISA investment rules.
As part of the ongoing CTF consultation, PIMA will be seeking clarification on subscription limits and whether transfers will be unlimited.
As with the overall Sandler suite, the structure of price cap charges will be critical for the success of the CTF and ensure a broad range of providers.
Tony Vine-Lott, Director General of PIMA, said: “PIMA is pleased that the CAT standard cash ISA forms part of the Sandler suite, but we question the 60% equity limit on the medium-term investment product. If the Sandler Suite is to be a success, it needs to yield a reasonable commercial return to providers.”