Foreign & Colonial is introducing the Gold Investment Account based upon the Foreign & Colonial Inve...
Foreign & Colonial is introducing the Gold Investment Account based upon the Foreign & Colonial Investment Trust, writes James Thorneley.
The saving scheme, which is only available to investors via an IFA, is designed for lump sum investments with no upper limit and a minimum of £15,000. Top ups may be made from £1,000 upwards. It is aimed at those investors who wish to ensure their money is managed in a tax-efficient manner by taking account of the new CGT rules on taper relief.
The Isa Gold offshoot of the product would automatically transfer money each year from the investment trust into
the tax-free shelter of the
Isa, while the money that remained outside the Isa has the potential to benefit from taper relief.
The initial management charge for the Isable product is 4.25% and the annual charge is 1.2%.
Intermediaries will receive an initial commission of 3% and trail of 0.5%pa.
The group also suggested the product could be used by IFAs in other ways, from meeting
the costs of further education supplementing traditional pensions.
In addition income can be taken as a fixed percentage of the initial investment and can be paid monthly, quarterly, half yearly direct into investors' bank accounts.
Despite improved risk appetite
FOS award limit increase
Relates to 136 million transaction reports
Ceremony will take place 13 November