Enable like most reputable Independent Financial Advisors know ISA’s are a vital part of personal financial planning. It is important to keep on top of any changes that occur and make sure that ISA’s are working for you. At the end of last year the government introduced new rules for investors whose ISA savings are lost in the collapse of a financial firm making it possible for them to be able to refill their annual allowance.
Under the old rules, any funds lost if the provider folded would have been considered part of the annual input. In a statement to MPs, Mark Hoban, Financial Secretary to the Treasury, said that the new plans allowed savers who have lost their cash Isa to save the equivalent amount, in the same year, in a new account with another provider and that they gave an investor the opportunity to reinvest any compensation paid out if a stocks and shares ISA is affected by a financial firm's collapse.
This permitted investors with ISAs directly affected for example by the collapse of Lehman Brothers to reinstate the same level of investment, irrespective of whether compensation had been paid.
"[The changes] will enable investors whose ISAs are affected by the failure or default of a financial firm to continue to benefit from tax-advantaged savings," Mr Hoban said. "They also demonstrate the government's commitment to ensure that the Isa remains a secure, accessible and tax-advantaged saving product."Enable IFA’s of Bishop’s Stortford are happy to help you maximise your ISA’s investments as part of your financial portfolio.
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