PIMA’s EVIDENCE TO TREASURY SELECT COMMITTEE INQUIRY INTO THE CHILD TRUST FUND
The PEP and ISA Managers’ Association today made public evidence to the Treasury Select Committee, Sub-Committee inquiry into the Child Trust Fund in advance of this week’s appearance before the Committee of Financial Secretary Ruth Kelly MP .
Key points in the submission include:
[list][*] PIMA members are committed to the principle of offering the CTF as an important step towards encouraging savings growth but want to see all forms of investment choice promoted.
[*]PIMA recommends that the existing ISA structure, regulations and authorisation are used for the Child Trust Fund and that it should encourage equity based investment (CTF).
[*] PIMA recommends that providers be allowed to call the CTF a Children’s ISA.
[*] PIMA has a number of specific issues it wishes this Inquiry to consider: charge capping and its effect on provider take up and investment choice offered; how Inland Revenue allocated CTF accounts for children whose parents elect not to take up their child’s CTF should be handled by providers; allowing children who qualify for a CTF – i.e. those born from September 2002 – to start their subscriptions immediately.
[*]PIMA urges the Government to clarify policy development on price capping as soon as possible.
[*] PIMA recommends that the Government’s commitment to ISAs should extend beyond the current date of 2010 as means to encourage long term CTF saving in the future.
Tony Vine-Lott, Director General of PIMA said “We welcome the Committees inquiry into CTF. PIMA and its members are committed to helping the Government achieve success with the Child Trust Fund but want to see a realistic and economic charging structure for the benefit of consumers and providers alike.”
For more information, a full copy of PIMA’s submission and comment:
Tony Vine-Lott – PIMA 01372 374728, 07790 006108
Iain Anderson/Sally Pagonakis – Cicero Consulting
020 7665 9532/3