- guardian.co.uk, Thursday November 9 2000 02.14 GMT
He also announced that the annual limit of £7,000 on the amount people can invest in Isas will be retained for a further five years, until April 2006, and that 16- and 17-year-olds will be able to put money into Isas for the first time.
The go-ahead for a new breed of "multi-tied" advisers, able to sell the products of a range of companies, was condemned by the Consumers' Association and independent financial advisers' groups.
The move was interpreted as a government attempt to boost sales of stakeholder pensions through banks. The vast majority of banks are tied, limiting them to selling the products of one pension provider.
The Consumers' Association said the rule change was "half-baked and misguided. If the banks want to offer better products, all they have to do is ditch their tied arrangement and become independent."
The heavily trailed announcements on Isa changes were widely welcomed. Halifax said they represented "a terrific encouragement to save" and NatWest said it was expecting an influx of account applications following the decision.
Under rule changes announced yesterday:
•The investment limit for Isas - due to fall to £5,000 next year - will remain at £7,000 for the next five years;
•From April next year 16- and 17-year-olds will be allowed to open cash Isas, extending tax-free saving to 100,000 under-18s who work and pay tax;
•The rules for Peps - which were replaced by Isas- will come into line with those for the new accounts, giving Peps holders access to a wider range of investment opportunities.
But there is a measure preventing parents from exploiting children's Isa allowances.
