New Isa market maze needs advice, industry warns

Andrew Pennie, marketing director at Intelligent Pensions, said the best outcome would be for savers to receive ongoing advice on their Isa investments, to ensure it is the most appropriate savings vehicle and to identify the best investment strategy.

But he added that the cost of advice relevant to the investment being made will always be a factor people consider.

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“Someone saving £50 a month is unlikely to spend a few hundred pounds on investment advice, but as the Isa fund grows in value and the investor looks to maintain an ongoing appropriate investment strategy, the benefit of advice will become more valuable and justifiable.”

Daren O’Brien, director at Aurora Financial Solutions, said: “The different Isa’s all have different options, caveats and now even break clauses in, and clients will start to need better advice to understand the differences and nuances of each.”

A spokesperson for HM Treasury told FTAdviser would carry out “industry-wide” discussions on the detailed design of the Lifetime Isa, including with The Pensions Regulator, the Financial Conduct Authority and building societies and banks, prior to the publication of the Finance Bill 2016.