Latest IMA Figures show net sales of Isas have slumped, spurring much comment about the death of this particular type of savings vehicle.
From annual net sales of £11bn for equity Isas in 2000, the latest monthly figures show a net outflow of cash as investors unsure of stock markets see rising rates on cash deposits become more attractive, says The Times
Net sales of £-23.5m in September compares with £259.5m in the same month one year ago, the paper writes.
Sales through the past quarter were 10% of the level achieved in the same period in 2002 and 2003.
The Times quotes Richard Wastcoat, managing director Fidelity Investments, calling on the government to restore tax relief on ISAs in the upcoming Pre-Budget announcement, particularly in light of the current focus on lack of savings in the UK.
The Daily Telegraph notes the drop in sales of Isas contrasts with the £1.2bn in net inflows recently reported by the Building Societies Association for September alone.
PENSIONS ARE ALSO QUOTED in relation to news the government wants to amend the definition of moral hazard in the Pensions Bill following protests from the industry, reports the Telegraph.
The issue has been sparked by fears unscrupulous employers could dump their pensions liabilities on the Pension Protection Fund, which will come into force with the new legislation.
”Under the amendments, employers will only be answerable for acts or transactions in the six years before a shortfall occurs,” the paper writes.
“To avoid uncertainty, companies will be able to go through a "clearance procedure" to ensure any act or transaction will not fall foul of the moral hazard rules at a later date. The DWP has also confirmed that individual shareholders and directors will not be liable for pensions deficits.”
Nine in 10 do not have income protection
Set to become part of Single Financial Guidance Body
Also plan to scrap NI on contributions
Eight-week high against US dollar