TISA welcomes the Government’s decision to scrap the early withdrawal penalty charge of five per cent for the first year of the LISA
TISA, the investments and savings membership association, has welcomed the Government’s decision to drop the five per cent withdrawal penalty charge for the first year of operation of the Lifetime ISA (‘LISA’).
David Dalton-Brown, TISA’s Director General said:
“It is great news for savers that the Government has decided to drop the five per cent penalty charge for withdrawals within the first year of a LISA. Over recent months we’ve argued strongly that the penalty charge of five per cent was simply unfair, particularly where no Government bonus would be payable.
“We believe the LISA is a good initiative and is a much-needed incentive for those who currently find it hard to save or to consider doing so. It also benefits the self-employed and low paid who do not quality for auto enrolment scheme benefits and helps to encourage earlier engagement with retirement savings. With the right guidance and advice, it will help younger people to save for a first property purchase or the long-term. Indeed, it’s something we have been seeking to achieve for some time.
“This proposal should simplify the administration process for firms and is a good move by the Government. We’ll continue to work with the Government, industry and trade bodies to ensure that the LISA works for both consumers and the industry and will continue to argue for the Government penalty to be scrapped on a long-term basis.”
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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.com
Jessica Hodson Walker- Telephone: 020 7680 6538/EmailJessica.HodsonWalker@newgatecomms.com
Email: TISA@newgatecomms.com
Notes for Editors
TISA is a not-for-profit membership association operating within the financial services industry. The focus of our recommendations and actions is improved outcomes for consumers and UK plc with this approach leading to a stronger UK financial services industry.
TISA’s growing membership comprises over 150 firms involved in the supply and distribution of savings and investment products and services. These members represent many different sectors of the financial services industry, including asset managers, insurance companies, fund managers, distributors, building societies, investment managers, third party administrators, consultants and advisers, software providers, financial advisers, pension providers, banks and stockbrokers.
TISA has a successful track record in working cooperatively with government, regulators, HMT, DWP and HMRC to improve the performance of the industry and the outcomes for the public. Effective policy and regulation and the creation of efficient industry infrastructure continues to be the major focus for our members. TISA is unique in that it represents the entire financial services industry, incorporating cross-sector policy, industry and technical expertise. Whilst we maintain a solid partnership with government, the regulators and wider industry, we remain independent and develop neutral views and opinions. This impartiality is reflected in our ability to drive development projects which improve industry performance and consumer outcomes, putting us in the unique position of being able to constantly challenge the status quo to bring about material improvement.
Website: www.tisa.uk.com