Government officials will discuss plans for Child Trust or 'Baby Bonds' with banks, building societi...
Government officials will discuss plans for Child Trust or 'Baby Bonds' with banks, building societies and friendly societies over the coming months, to give ever child a savings fund accessible from the age of 18.
After looking at the open market option and restricted provider licenses, the government has decided to allow the open market competition, despite it complexity.
"Open market competition is a good thing," says JPMorgan Fleming's Mark campbell.
Consultation will now be held with potential providers and trade bodies on the detailed implementation of the Child Trust Fund, including:
the structure and value of endowments,
fund investment options,
and methods of delivering financial information, education and advice.
Brown's report says the Government will also consider the relationship between the CTF and the suite of 'stakeholder' investment products recommended by the Sandler review.
Additional figures released by Brown also state that from April 2003 families will receive the following amounts for each child:
Levels of support for families from April 2003:
|Family income (£ a year)||less than £13,000||less than £50,000||all families|
|Per cent of families||25||85||100|
£300bn of liabilities
View from the front row
Transfer from occupational scheme
Appointed by FCA and PSR boards