TISA welcomes 20 year ISA anniversary, but calls for overhaul of ISA landscape
Ahead of the 20 year anniversary of the introduction of the ISA, TISA, the investing and saving membership organisation, is calling for the streamlining of the ISA landscape to ensure consumers can take full advantage of the benefits.
As part of its ISA simplification proposals, TISA is recommending the removal of the current restriction on the number of ISAs consumers can open each year, to give people greater freedom to choose where to put their money.
Carol Knight, Chief Operating Officer at TISA, commented:
“With around one in five UK savers holding an ISA*, clearly they are an important part of the savers landscape – arguably the most important one. As a tax-free saving option, ISAs are still the perfect option for people who are trying to save. But to ensure the ISA remains in this position, we need to have a fundamental rethink about how the current landscape is set up and the choices available to consumers.
“Since 2014, we’ve seen the introduction of ostensibly greater consumer freedom, with the emergence of a number of new types of ISA. But in some ways this has provided people with a false sense of choice, as customers are still only able to subscribe to one ISA of each type in any tax year. We would like to see this policy change, so that savers can subscribe up to the full annual limit across any number of ISAs each year, moving their money around without coming up against unnecessary barriers.
“These changes would result in people having significantly more freedom around how they save and should also help to lessen confusion over which option is best for them. With enhanced skills and confidence around how to manage their money, consumers would then be in a far better position when it comes to saving for their long or short term needs.”*Based on HRMC statistics on subscriptions to ISAs in 2017/18 and number of adults living in the UK (FCA)TISA, the investing and saving alliance,
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Issued on behalf of TISA by Atlas Partners, for further information please contact:
Clara Rees Jones: telephone: 020 7183 7154 or 07523609413, email: clara.reesjones@atlas-partners.co.uk
Email: tisa@atlas-partners.co.uk
Notes for Editors
TISA is a unique, rapidly growing, consumer focused membership organisation. Our ambition is to improve the financial wellbeing of all UK consumers. We work with our members to deliver practical solutions and devise innovative, evidence-based strategic proposals for government, policy makers and regulators that address major consumer issues.
TISA membership is representative of all sectors of the financial services industry. We have over 200-member firms involved in the supply and distribution of savings, investment products and associated services, including the UK’s major investment managers, retail banks, online platforms, insurance companies, pension providers, distributors, building societies, wealth managers, third party administrators, Fintech businesses, financial consultants, financial advisers, industry infrastructure providers and stockbrokers.
Complementing our consumer policy development, TISA has become a major industry delivery organisation for consumer focused, digital industry infrastructure initiatives (TeX/STAR, Digital ID, MiFID II and Open Savings & Investment). This reflects TISA’s commitment to open standards and independent governance.
TISA’s current strategic policy and industry solution developments include making financial guidance more widely available; digitalisation including the development of a Digital ID, developing open standards-based projects that support the growth of Fintech and increase consumer access to financial services while lowering costs for providers; financial education for young people; retirement savings; consumer engagement; the TISA and KPMG Savings Index.
TISA also provides its members with 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. This work currently includes: MiFID II, CASS, SM&CR and addressing cybercrime.
Website: www.tisa.uk.com