ISAs and Child Trust Funds

The Government will extend the rules for qualifying investments in Individual Savings Accounts (ISAs) and Child Trust Funds (CTFs), allowing the holders of such accounts and funds to invest in all retail collective investment schemes authorised by the Financial Services Authority (FSA).

The extension will take effect from 6 April 2006. It will cover authorised schemes which qualify as 'UCITS' schemes under the European Directive on Undertakings for Collective Investment in Transferable Securities ('the UCITS Directive'), and 'non-UCITS' retail schemes, which have slightly more relaxed rules, allowing access to a wider range of investment products including real property.

However, the schemes must not restrict savers' ability to access their savings and schemes which apply the FSA's 'limited redemption' rule will not be eligible.