TISA responds to HMRC statistics on ISA subscriptions
Responding to today’s update from HMRC statistics on subscriptions to Individual Savings Account (ISA), Carol Knight, Chief Operations Officer, TISA comments:
“The latest statistics released today by HMRC on ISA subscriptions clearly shows that consumers are taking a more long-term outlook when it comes to savings. The number of stocks and shares ISAs subscribed to rose slightly compared to cash ISAs that were down from approximately 10 million in 2015-16 to approximately 8.4 million in 2016-17.
“Whilst many people know that they should be saving and investing, it is simply not an option for some and it is essential that we work together to develop ways to rebuild confidence and trust around investing. There is still a growing need for better education and guidance around savings and investing to enable consumers to make better decisions and understand when it is a sensible time to move from cash savings to investing.
“However, it is encouraging to see an increase in the number of Junior ISAs being subscribed to; around 794,000 accounts were subscribed to in 2016-17, up from 738,000 in 2015-16. A Junior ISA is protected until a child is 18, the potential savings over the long term are significant. It is promising to see parents are recognising Junior ISAs are a good way to help to kick-start the savings habit from an early age to save and invest for their children’s future.
“It is important that we create a savings culture where we provide quality guidance and better information, to help change and improve consumers of all ages attitude around savings and investing.”
Ends….
For further information please contact:
Alistair Kellie – Telephone: 0207 680 6558/Email Alistair.Kellie@newgatecomms.com
Sara Neidle – Telephone: 020 7680 6550 / Email Sara.Neidle@newgatecomms.comJessica Hodson Walker- Telephone: 020 7680 6538/EmailJessica.HodsonWalker@newgatecomms.comEmail: TISA@newgatecomms.com
Notes for Editors
TISA is a unique, consumer focused membership organisation. Our aim is to improve the financial wellbeing of UK consumers by aligning the interests of people, the financial services industry and the UK economy. We achieve this by delivering innovative, evidence based proposals to government, policy makers and regulators.
TISA’s growing membership comprises 170 firms involved in the supply and distribution of savings and investment products and services. These members represent all sectors of the financial services industry, including asset managers, insurance companies, fund managers, distributors, building societies, investment managers, third party administrators, FinTech, consultants and advisers, software providers, financial advisers, pension providers, banks and stockbrokers.
Current themes of TISA policy work include:
• Brexit: developing proposals for government that will enable the savings and investments sector to prosper on a global scale
• Digitalisation: a digital identity for consumers of financial services, innovation, standards and data responsibilities
• ISA’s: LISA, simplification of the regime
• Retirement saving: the Auto Enrolment review, self-employed and pension tax relief
• Housing: the use of property to supplement retirement income
• Guidance: developing a framework and services to make guidance more widely available
• Education: supporting the education of young people to make them aware of the impact of finance on their life.
TISA also provides support on a range of operational and technical issues targeted at improving infrastructure and processes, standards of good practice and the interpretation and implementation of new rules and regulations. TISA has a successful track record in working cooperatively with government, regulators, HMT, DWP and HMRC to improve industry effectiveness by reducing cost and risk and to enhance customer outcomes. This work currently includes: MiFID II, CASS, the UK Fund Trading & Settlement initiative and Payments Strategy Forum. TISA Exchange (TeX) is providing a model for transfers and re-registrations.