PIMA Welcomes further details on ISA reforms
The announcement by Economic Secretary Ed Balls MP confirms the Government’s intention to carry forward several of PIMA’s major revisions to the ISA regime. The simplifications suggested leads PIMA and its members to believe that the result will be a major boon for savers.
Particularly encouraging proposed reforms include:
•The ability to transfer funds from Cash ISAs to Equity ISAs without affecting annual subscription limits. This will allow consumers to modify their savings as market conditions change and/or their lives reach new phases. It also will allow investors more opportunity to enjoy exposure to equities which may reveal higher returns over the long term.
•PEPs will be abolished, but accounts won’t have to be amalgamated. This is great news from a technical standpoint because it will allow providers and consumers to choose how their funds adapt to this transition.
•Components may be held by the same or different providers. This is consistent with a key characteristic of ISAs—a vibrant competitive marketplace with tremendous choice for consumers.
•Child Trust Funds will be allowed to roll over into ISAs when they begin to mature in 2020.
PIMA looks forward to continuing its close collaboration with HM Treasury and HM Revenue and Customs to provide technical industry expertise in implementing these measures.
Tony Vine-Lott, Director General of PIMA said:
[i]“We welcome this announcement by the Treasury— and are delighted. I sincerely thank the Government for taking on board PIMA’s recommendations. We have devoted significant amounts of time and energy to promoting these proposals with Government because we believe they are in the best interest of the consumer and will help boost longer term savings in line with government’s wishes. We look forward to building on our productive dialogue with ministers and officials.”[/i]
For more information:
Tony Vine-Lott, Director-General, PIMA
07790 006108
Iain Anderson or Jacob Coy, Cicero Consulting
020 7665 9535
079 0039 2531