ISAs
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14. Charges and CAT standards
CAT stands for 'Costs', 'Access' and 'Terms'.
CAT-standards were devised by the government to assist with identifying low cost ISAs with minimal barriers to entry and fair terms and conditions.
The government abolished the CAT standards in April 2005, meaning ISA providers can no longer use this feature in their advertising.
To qualify for the CAT mark, an ISA plan had to satisfy the following standards:
| CHARGES | ACCESS | TERMS |
|---|
| STOCKS AND SHARES AND FUNDS | - Under 1% p.a. of Net Asset Value
- No initial and other charges
| - Minimum contribution no higher than £500 p.a. or £50 p.m.
| - Single pricing on funds.
- At least 50% invested on EU exchanges
- Investment risk highlighted
|
| CASH | - No regular or one-off charges
| - £10 minimum transaction
- Access to funds within 7 days
| - Interest no lower than 2% below base
- Rate increases to follow base rate within 1 month; downward adjustment can be slower
- No limits on withdrawal frequency
|
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