TISA’s response to the latest update from HMRC statistics on the subscription to Individual Savings Accounts (ISA)
Carol Knight, Chief Operating Officer, TISA comments:
“The figures released today by HMRC on the subscription of ISAs clearly shows that consumers are very comfortable with cash savings. HMRC revealed 12,229,000 people subscribed to ISAs for the financial year 2014/15, of which 9,518,000 were Cash ISAs. Although, it is important that everyone should have some kind of cash pot or ‘rainy day’ fund to cover unexpected circumstances, for longer term purposes this is not ideal, and there is a need to consider other forms of investment.
“It is important for us to remember that 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 clearly a need for better education and guidance around savings and investing, to enable consumers to overcome their fears and concerns about investments, and to be able to recognise the time at which it is sensible to move from cash savings to investing. We need to create a culture where we provide quality guidance and better information, to help change consumers 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.com
Jessica Hodson Walker- Telephone: 020 7680 6538 / EmailJessica.HodsonWalker@newgatecomms.com
Email: 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 over 160 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 Settlement initiative and Payments Strategy Forum. TISA Exchange (TeX) is providing a model for transfers and re-registrations.