True PotentialMar 16 2017

True Potential to launch Lifetime Isa in 2017

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True Potential to launch Lifetime Isa in 2017

True Potential has confirmed it will launch a Lifetime Isa in 2017, in time for savers to receive the full government bonus.

A spokesperson for the firm said the True Potential Lisa would not be ready by the government's 6 April launch date, but would be available before the end of the calendar year.

That means True Potential customers will be able to contribute up to £4,000 in the 2016-17 tax year, and claim the full 25 per cent government bonus.

That money can then be accessed tax-free to go towards a deposit on a first home, or after age 60.

The spokesperson said the firm would only be offering a stocks and shares Isa.

The Lisa, announced by former chancellor George Osborne in his 2016 Spring Budget, can be opened by anyone over the age of 18 and 40, with contributions allowed to continue to the age of 50.

Providers will be able to market Lisas from 6 April this year.

True Potential is one of the few providers to have committed to launching a Lisa in the first year of the product's existence. Others include Hargreaves Lansdown, The Share Centre, Scottish Friendly and One Family.

Some providers, such as Nationwide and Old Mutual Wealth, have stated they will not offer a Lisa, while the majority have made no commitment either way

Sean Irwin, a Plymouth-based IFA with DFP Wealth Management, said many of his clients were in their thirties and therefore eligible for, and interested in, setting up a Lisa.

But he said the reluctance of many providers to enter the market was a "missed opportunity".

"A lot of providers showed a lot of interest at first, but not many have followed through," he said.

He claimed the Lisa was a good way for product providers to win the business of young people, whom he said were "quite loyal", and likely to take up their Lisa provider's other products as their wealth grew.

Mr Irwin said he wanted to see "bigger companies with a bit more calibre and a bit more financial strength" enter the Lisa market.

james.fernyhough@ft.com