A UK ISA Website
UK ISA Guide
CAT Standards
The Government's voluntary CAT standard code sets out benchmarks
for fair Charges, easy Access and decent Terms
of financial products.
You should remember that even if an ISA is described as
meeting the CAT standards it does not mean that it is in
any way 'Government approved' or necessarily right for you.
For a cash mini ISA to be eligible for a CAT mark, the
following must apply:
- Charges - No one-off or regular charges of any
kind. However there may be charges for replacement items
such as duplicate statements.
- Access - Minimum transaction size to be no greater
than £10. Withdrawals within seven 'working' days or less.
- Terms - Interest rate to be no lower than 2 percentage
points below the base rate. Any upward interest rate changes
must reflect base rate movements within a 'calendar' month.
Downward changes may be slower. There must be no other conditions
imposed such as limits on frequency of withdrawals.
For a stocks and shares ISA to be eligible
for a CAT mark, the following must apply:
- Charges - Maximum charge of 1% per annum of
net asset value. Single pricing with no other charges
except for stamp duty or brokers commission.
- Access - Minimum saving of not more than £500
per year or £50 per month.
- Terms - Authorised unit trust, OEIC or investment
trust with gearing of not more than 10% and no split share
classes. Fund must invest at least 50% in EU listed shares
or securities which satisfy the ISA regulations.
The CAT standards are voluntary and therefore the ISA providers
are under no obligation to design their products so that they
meet the requirements of the standards. If a plan does not
comply with the CAT Standards that does not mean it is necessarily
a bad buy. It may simply mean that the product would be more
suitable to people who have experience in investing, or who
have received advice from a financial adviser about the suitability
of the product for their needs.
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