Internet-only financial services company netISA is teaming up with spread betting firm IG Index to o...
Internet-only financial services company netISA is teaming up with spread betting firm IG Index to offer an investment protection service, writes Leo Bland.
The service, called immunISA, allows investors to freeze their investments over the internet when they believe markets are looking overvalued. The group said this would have the same effect as selling for cash but will not trigger capital gains tax liabilities or lead to the investor losing their Pep or Isa allowance. The service is only available over the internet.
Investors can freeze their investment for either three or six months and unfreeze it at any time without penalty. A charge of 0.5% is levied for three months' protection while there is a charge of 0.75% for six months' protection. For a three month extension there is a charge of 0.25%. The service is available on netISA's FTSE 100 index tracking unit trust with or without a Pep or Isa wrapper.
The group's tracker fund is run by Barclays Global Investors and has an initial charge of 1%, which is waived on investments of £25,000 and over. The annual management fee is 0.35%. Richard Carswell, managing director of netISA, said: "This is a perfect example of the breakthrough opportunities which the internet makes possible. ImmunISA could not be offered without the power of the internet."
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The increase in minimum AE contributions has had little impact on opt-out rates - with cessations after April increasing by less than two percentage points, data from The Pensions Regulator (TPR) shows.