St James’s Place has said it will not advise on the Lifetime Isa, making it the only one of the major advice firms not to do so.
But the FTSE 100 company has not revealed why it will not be advising on the newly launched product.
The Lifetime Isa was launched last week but just a handful of providers are offering it.
Despite this, all large financial advice firms and networks asked by FTAdviser said they either support the product or will allow their advisers to recommend it when suitable – except SJP.
Patrick Connolly, head of communications at Chase de Vere, said: “We are supportive of the Lifetime Isa, although as product to be used in conjunction with pensions rather than instead of them
“We will recommend them where relevant. However, they won’t be suitable for a large proportion of our clients who will fall outside of the eligible age range and will already own property.”
Speaking on behalf of Tenet, Ben Wright, managing director of Sinfonia Asset Management, said the concept of the Lisa was good.
He said: “There does however seem to be some hesitation from providers around the new product, with only a handful confirming that that they will be providing the Lisa on 6 April.
“We are a little surprised that the government is not doing as much to advertise/promote this initiative as it has done with others in the past, as leaving it purely to providers and advisers may result in less take up than would be achieved with a government campaign running alongside.
“For those saving for retirement, pensions still offer attractive tax reliefs, especially for higher rate taxpayers, and careful consideration will be needed when deciding on whether to save a Lisa or a pension based on individual circumstances.”
In the first month of the new wrapper's life, only Hargreaves Lansdown, Transact, Nutmeg and The Share Centre look set to have a Lisa on the market.
AJ Bell will launch a product at the end of April, while Skipton Building Society will launch a cash-only Lisa in June.
That means three months into the regime there may only be a choice between six providers.
A spokesman for Tilney agreed that the product would probably be more useful for a client’s children or grandchildren rather than the client themselves.
But she said the company would still recommend it “where appropriate”.
A spokesman for Standard Life’s 1825, said the Lisa was a “very useful addition” to the range of savings option and its advisers would recommend it where suitable.
Succession and Old Mutual Wealth did not respond but it is understood the latter’s advisers would also recommend it where suitable.
damian.fantato@ft.com
