Reyker Securities has introduced a Bed & Isa facility for its structured products range in the UK market, allowing savers to invest up to £15,000 in a tax-efficient account, in anticipation of the new Isa (Nisa) allowance stipulated in April’s budget which will come into effect on Jul 1

The investment will be broken up into two phases, an initial deposit of £11,880 into a 2014/15 Isa account followed by a £3,120 direct investment. On July 1, Reyker will sell the direct investment and repurchase the equivalent number of units at the same price within the Isa, free of charge.

Pippa Brown, director of sales and distribution, said Reyker was encouraging clients to capitalise on the opportunities the Nisa allowance provides. “We have made it easy for investors to use the whole of the £15,000 Isa allowance with this unique opportunity,” she said.

Under the previous rules, the Isa limit was £11,520, only half of which could be cash (£5,760). From July 1, investors can hold up to £15,000 in a combination of solely cash, stocks & shares, or cash and stock & shares combined, allowing greater flexibility when tax planning.

There are currently 24 Reyker structures live on the UK retail market, all but two of which have a condition for early maturity. The latest product, the Dual Index Income Plan May 2014, will be in subscription until May 30, striking on June 6 for a potential investment duration of six years.

The product is linked to the performance of the FTSE100 and Eurotoxx50 indices, and offers a fixed coupon of 1.925% per quarter, provided the worst performing index has not fallen by more than 20%. From the second anniversary onwards, if the level of the worst performing index at any of the observation dates has risen by more than 5%, the product matures early and offers 100% capital back, plus the coupon. At maturity, 100% capital return is guaranteed provided that the worst performing index does not fall by more than 60%; otherwise, capital is decreased 1:1 with the fall in the worst performing index.

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