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www.InvestmentGuide.co.uk What is an ISA?
OEICs
Investment trusts
Offshore funds
CAT stands for Individual Savings Accounts (ISAs) which have reasonable Charges, easy Access and fair Terms.
The CAT standard for collective investment ISAs
- To qualify an ISA must have a single price at which units or shares are bought and sold. Charges are to be no more than 1% a year of net asset value. There are to be no hidden charges although dealing costs (stockbrokers commission and stamp duty) in the underlying securities can be charged. The minimum investment must be no more than £500 or £50 a month.
- There are usually few restrictions on the types of shares you can invest in through an ISA. But CAT standard ISAs must invest at least half of their value in shares and securities listed on EU stock exchanges.
The CAT standard for cash deposit ISAs
- Interest must not be less than 2% points less than base rate. This is a poor standard as the best accounts offer rates equal to base rate or plus ½%.
- There must be no charges (except for duplicate statements, lost plastic cards etc).
- Minimum transaction size no greater than £10 each. Maximum notice 7 days.
- The interest rate must rise no later than one month after a base rate rise.
What is an ISA?
OEICs
Investment Trusts
Offshore Funds
Last updated 15
March 2011