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1.) A. Many ISAs are CAT marked referring to government standards on ISA products

C Charges should be fair

Maximum management charges

No one-off or regular charges

A Access should be easy

No minimum transactions above 10

Withdrawals paid within 7 days or less

T Terms and conditions should be clear

Increases in the Bank of England base rate must be reflected within one month

Higher interest rates may be on offer forlong notice periods prior to withdrawal

B.) ISAs are most valuable for:

Equity investments by higher rate taxpayers;

Savers of all tax rates in low risk assets such as cash deposits and bonds;Tax Benefits of an ISA:

Income from cash deposits is paid tax-free;

Tax on coupon income from bonds can be reclaimed, making this tax free;

Initial 10% tax on dividend within an ISA income CANNOT be reclaimed;

However, with 10,200 ISA limit, capital gains are highly unlikely to exceed the 10,600

capital gains allowance anyway!

Further 22.5% tax on dividend income is avoided for higher rate tax payers (17.50 on

earlier example)

2.) Do some research . Buy to let can be a legal, practical and financial minefield, and you will need to do your

homework. Research the market, with the help of your local NAEA estate and lettings agents, who will be able

to advise on demand and any other issues in the area you are considering.

1. Know the demand. Buying where there is no rental demand can be fatal to the buy to let investor, yet it is

a surprisingly common mistake. Make sure you are not investing in a market which is already saturated

with the sort of property you have to offer, and do not be misled by stories of fast profits.

2. Understand your finances. Keep in mind whether you are in the market for capital gain when you sell or

simply monthly rental income. This will help you decide what to buy and where, and what kind of mortgage

you need.

3. Buy carefully. Make sure you buy a property which allows for sufficient profit margin. Do not go for a

'bargain' property which may turn into a money pit very quickly. Major repairs require much time and effortand paying more for a property which is in better condition can be a wise move.

4. Decorate to demand. Don't make the mistake of decorating and furnishing the property to your own

tastes - keep it simple, with clean lines and do not fall into self indulgence. You are there to make money

out of the property, so keep your market in mind but do not treat it like a dolls house.

5. Check for safety. By law you must make sure that the property you are letting complies with various

safety regulations, like furniture and furnishings fire safety, gas safety, electrical equipment safety and that

it contains a smoke detector. You'll also need certificates to prove these regulations have been met.

You need to be aware of new and updated regulations as and when they arise. Failure to comply with the

law can result in serious consequences. The best way to make sure you are kept up to date is to use an

NAEA agent who can make you aware of them, while also ensuring you comply.

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6. Know your responsibilities . You, your letting agent and your tenant have different responsibilities, and it

is important to know where these lie. As the landlord you will be expected to pay buildings insurance,

ground rent and service charges and insure any items you leave in the property. Your letting agent will be

able to advise on others' responsibilities as part of your contract.

7. Prepare for voids. Your property may be empty and not generate any income for periods of time, and

you need to be ready for this. Advertising for new tenants, painting walls and replacing carpets can take

months off your lettings calendar and you should have a plan in place for when this happens.

8. Move with the market . Know that, if the market softens, you will have to lower your rent in order to stay

competitive, no matter how desirable your property. If you are in it for the long term this should not matter,

as the important thing is that your property continues to generate a fee for you.

9. Recruit a managing or letting agent. Knowing where to advertise your property, how to vet your tenants

and the kind of lease you should use can be tricky if you have no experience. Being a landlord is a full time

responsibility, 365 days a year and is best not left to friends or family. A good agent who is affiliated to theNAEA will find tenants, do background checks, draw up the lease, collect rent, and inspect the property,

thereby removing much of the hassle involved.

3.) The FSA regulates most financial services markets, exchanges and firms including mortgage and insurance

providers. The FSA has four statutory objectives:

Maintaining market confidence in the financial system

Promoting public awareness of the financial system

Securing the appropriate degree of financial protection for consumers

Reducing financial crime

The FSA has identified three main areas of financial crime that they can play a significant role in preventing:

Money launder ing , Fraud or dishonesty, including financial e-crime and Fraudulent market ing of investments

and criminal market misconduct including insider trading

Regulatory tools Directed towards individual institutions

Authorization of firms and approval of individuals - setting entry standards for honesty, competence and financial

soundness.

Perimeter injunctions and prosecutions - the FSAs power to stop unauthorized activity and to prosecute those

undertaking it.

Supervision of firms - supervision to monitor, identify and deal with firm s specific risks. Done through on-site

visits and desk-based reviews.

Investigation - individual firms can be investigated by the FSA.Tools individual institutions

Intervention - to be used where the risks are immediate and continuing and the FSA believes the firm will not take

appropriate remedial action on its own.

Discipline - private warnings, public censure, financial penalties, withdrawal or suspension of authorization.

Restitution of loss - where compliance failures result in profits to the firm or loss to consumers, the FSA can apply

for a court order of restitution.

The FSA also has administrative power where a regulated firm has breached a regulatory requirement, to require

it to compensate consumers for any consequent losses.

The decision of the FSA is binding on the regulated firm but leaves a consumer free to reject the decision

and take their complaint to the courts.