TISA responds to CTF transfer consultation
TISA is backing the Government’s proposal to allow CTFs to transfer into a Junior ISA, providing that on maturity CTFs are allowed to roll over into adult cash or stocks & shares ISAs, outside of the normal ISA investment limits.
In its response to the HMT consultation TISA argues that allowing the migration of CTFs into adult ISAs would encourage CTF providers to continue to invest in existing products and compete to retain maturing business. This, TISA contends, will act as a spur to competition, deliver greater choice and more attractive products for CTF customers.
TISA also recommends that lifestyling in a stakeholder CTF be made optional for providers so as to encourage longer term investment by remaining in a stocks and shares ISA on maturity.
Jeffrey Mushens, TISA Technical Director says:
“We are firmly in favour of providing CTF and JISA customers with greater choice in a market that promotes competition. We believe that the proposals outlined in our response offer the best chance of achieving this aim if the Government decides to allow the voluntary transfers of CTFs into a JISA.
“However, some of our members are anxious about the risks for the existing CTF market. There is a danger that many of the higher value CTFs may transfer to a JISA making it difficult for CTF providers to continue to service the high volume of remaining low value accounts. This would be particularly damaging for those of the 6 million children who have trivial amounts in their CTF and would be to the detriment of consumer choice and product competiveness.”
TISA and its Children’s Savings Policy Council is in a dialogue with HMT and HMRC to develop options to make children’s savings part of a long term strategy for encouraging savings in the UK.
Ends……
For further information, please contact:
Jeffrey Mushens, Technical Director, TISA – Tel: 07939 575093Email: Jeffrey.mushens@tisa.uk.com
Tony Vine-Lott, Director General, TISA – Tel: 01372 374728, Mobile: 07790 006108Email: tonyvine-lott@tisa.uk.com
Issued on behalf of TISA by Cauldron Consulting, contact Steve Radford – Tel: 020 7680 6568, Mobile: 07889 903786 Email: steve.radford@cauldron-consulting.com
Notes for Editors
The Tax Incentivised Savings Association (TISA)
TISA is the premier industry funded body in the UK retail savings and investment industry. By engaging with member firms, government, political parties, regulators and consumer groups TISA’s ultimate goal is always to further consumers’ best interests. It seeks to improve the range, features and quality of savings and investment schemes available whilst encouraging more people to save for their financial security and peace of mind.
Uniquely, TISA is able to articulate the opinions of the whole savings and investments marketplace through its membership comprising over 130 member firms involved in the supply or distribution of products. TISA’s remit extends across the broad spectrum of savings vehicles & services and centralised investment propositions.