12. What is a CAT Standard?

• The Unit Trust Information Service lists these criteria for CAT Standards:
  
  
  Cash CAT ISAs must
  
  
• have no one-off or regular charges
  
  
• have a minimum transaction size of £10 or less
  
  
• permit withdrawals at no more than 7 working days
  
  
• pay interest no less than 2% below base rate
  
  
• increase interest rates in less than 1 month of a rate change
  
  
• have no other conditions
  
  
  Life assurance CAT ISAs must
  
  
• not charge more than 3% of the fund value pa
  
  
• have minimum premiums of £25 pm or £250 pa
  
  
• have surrender values that reflect, over time, the basic assets
  
  
• have surrender values of at least premiums paid after 3 years
  
  
  Unit Trust and stocks-and-shares CAT ISAs must
  
  
• not charge more than 1% pa and have no other charges
  
  
• allow minimum savings of £50 monthly or £500pa
  
  
• be single priced (no bid/offer spread) if in unit trusts or oeics
  
  
• provide clear simple literature spelling out levels of risk
  
  
• in the case of units trusts and oeics, be invested at least 50% shares and eligible securities listed on EU exchanges