Industry says Isas so complex they will need advice

Industry says Isas so complex they will need advice

Industry figures have stated that Isas are now so complex they will need to be advised upon in future.

Neil MacGillivray, head of technical support at James Hay Partnership, pointed out that there were now a number of different kind of instant savings accounts available on the market.

These include the Help to Buy: Isa, the Innovative Finance Isa, the cash Isa, the stocks and shares Isas, the Junior Isa and now the Lifetime Isa, which was announced in the Budget 2016.

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He added: “There is one limit but multiple Isas to split it through and there is a need for advice.”

Claire Trott, director and head of pensions technical at Nottinghamshire-based Talbot and Muir, said that with all the different options within the Isa world now it was getting to a point where some people would need advice or more detailed advice, especially with regards to what they can use them for and how they can access them.

Paul Lindfield, director at Manchester-based Sedulo Wealth Management, said that the Lifetime Isa did create another need for advice.

He added: “It’s really a nice idea, but it could lead to poor advice down the line, or a widened advice gap, or providers taking a quick hit.”

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

A Treasury spokesperson told Financial Adviser that in the run-up to the publication of the Finance Bill 2016, the Treasury would be discussing the detailed design of the Lifetime Isa with the Pensions Regulator, the Financial Conduct Authority and building societies and banks.