Tightening of rules on cash Isas could stop intermediaries recommending the products

Intermediaries are being deterred from recommending cash funds to their clients following the FSA's tightening of the rules governing recommendation of the product. Prior to the implementation of the N2 legislation in December, intermediaries could recommend a cash fund on the basis of the rates it offered. But under the new regime, cash Isas' status as a regulated product forces intermediaries to back these recommendations with a full fact find. Rory Percival, head of compliance at intermediary Fiona Price & Partners, said: 'It is completely impractical and I think it is a mistake. We...