Cofunds offers cash facility for Isa investors

Cofunds is to offer a cash facility for clients of intermediaries from March 11, which will enable them to hold cash within a stocks and shares Isa prior to it being invested in the equity or fixed interest markets. The tool, which will facilitate a phased investment service later in the year, does not breach the Inland Revenue's rules forbidding cash funds to be held in an Isa because money invested is earmarked for the markets. Following an agreement with the Bank of Scotland, intermediaries will be able to hold clients' funds in the Cofunds Cash Reserve, subject to the Revenue's stip...