F&C Investments has introduced a £25 plus VAT annual charge on its Child Trust Fund, which will come into effect from 6 April.
Previously, F&C had no initial or annual management charges for its shares Child Trust Fund plan. In a letter to clients, F&C said the charge has been put in place to cover administration costs. "Introducing a charge is not a decision we have taken lightly. The introduction of a flat fee aims to cover the costs we incur to administer these plans," said F&C. "The larger the value of your investment the smaller the impact of a fixed rate charge."
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