TISA - Tax Incentivised Savings Association - Project

The Savings and Investments Policy Project

The Savings and Investments Policy Project

The Savings and Investments Policy project

The Savings and Investments Policy project (TSIP) was initiated by TISA in 2013 to proactively develop evidence based, strategic policies, to be used to engage with government and FCA in order to influence change aimed at re-establishing a savings culture in the UK, and helping to restore personal financial wellbeing and security.

It quickly evolved into an unprecedented coalition of over 50 firms representing financial services organisations, trade bodies and consumer groups. TSIP has engaged with government ministers, officials, members of the House of Lords, regulators, trade unions, the media, consumer groups in the UK and with the European Union in Brussels to present and discuss its policy recommendations.

TSIP set out the savings issues facing UK consumers in its initial report Our Financial Future, before identifying seven key policy themes for the industry and government to work together on. The first TSIPs idea of a pensions will was largely adopted in the Chancellors 2014 changes to pensions taxation. The six other policy recommendations were published in TSIPs 2015 report Saving Our Financial Future. Progress against these original recommendations is at an advanced stage:

Developing a secure digital identity to make it easier for UK consumers to engage with financial services. A pan-industry project working in conjunction with the Cabinet Office and The FCA - is well advanced and a prototype digital identity was unveiled at TISAs 2016 Annual Conference.
Pension Taxation. A comprehensive, evidence based response - Strengthening the incentive to save - was submitted to the Treasurys 2015 consultation on pensions tax relief. This included detailed proposals for a self-employed pension. Further development of these proposals in the light of the Lifetime ISA is now underway.
Adopting nudge techniques to minimise AE opt-outs and to increase AE pension contributions to a level that will deliver adequate retirement income. TSIPs proposals are a key feature of the response to HMTs pension tax relief consultation. The focus has now turned to the 2017 AE review.
The creation of a new position in government to champion the promotion of consumer savings. The idea received positive support from government officials and the appointment of Baroness Altmann as Minister of State for Pensions, following the 2015 General Election, partly recognised the need for a broader brief. Subsequent changes within government following the EU referendum vote have added fresh impetus to the proposal.
Increasing financial education. Work is now concentrated on establishing a financial education programme in primary schools. A three-year pilot programme will commence in early 2017.
Developing a framework for financial guidance. A comprehensive response has been submitted to the Financial Advice Market Review and TSIPs proposals, including the development of generic guidance principles, form the basis of on-going engagement with the FCA.

A new policy recommendation around the inclusion of property assets within a financial plan and specifically to help fund income requirements in retirement Can housing wealth save the day? - has also been initiated by TSIP.

Now that TSIPs original strategic policy recommendations have either been completed, or are at an advanced point, the responsibility for the working groups tasked with the ongoing enhancement, adaptation and delivery is being directly assumed by TISA and is being aligned with the Policy Councils. A new group the TISA Strategy Committee comprising many of the TSIP members, has been established to provide oversight of these activities and TISAs new strategic policy developments.

January 2017