Need clarification with ISA terms and conditions

KLee

Hey there

I'm not very savvy and need some help

I've been looking at ISAs to try and maximise what I'm putting away and in the terms and conditions of one this is included

Since 6 June 2000, new investors opening an Account which entitles them to
Membership have been required to assign any future windfall benefits they are
entitled to, to the Charities Aid Foundation (a charity).

What is a future windfall benefit? MSE recommend this ISA (Principality i think )but I don't fully understand this bit. can anyone help?

dunstonh

What is a future windfall benefit?

If they demutualise in future and a payment comes from that then you are agreeing that you dont get it but the Charities Aid Foundation gets it. Its basically to stop people from opening accounts with small amounts and doing what was known as carpet bagging.

lisyloo

It's simply to stop "carpet bagging".
That's people who take out loads of accounts with every building society purely to get a windfall when they merge.
If you take out an account now, and in future there is a windfall as a result of a merger then your amount won't go to you, it will go to charity.
It's to stop people just opening accounts on the off-chance but to ensure long-standing loyal customers can be rewarded.

Nothing to worry about.

Paul_Herring

Remember carpet-bagging? Where you got bonuses if the building society de-mutualised?

The rules you're asking about are basically a defence against carpetbagging by making it pointless to attempt since any benefits that would normally be due upon demutualisation have been signed away.

i.e. windfalls are what you (would have) got should the society demutualise.

It has nothing per-se to do with your ISA (beyond the fact that you're a member because you hold your ISA with them.)

KLee

Hello

Thank you so much all of you for taking the time to explain it. Makes perfect sense. Thank you!!