He added: “I think this would be an extremely positive and popular change that would be welcomed by consumers, financial advisers and Isa managers. I also think it can be implemented in a way that is cost neutral to the government.”
Scott Gallacher, chartered financial planner at Rowley Turton, said 'Isa' was a popular name with clients and the government had tried to capitalise on its popularity by using it in "ever increasing ways".
He added: "I see muddying of the waters with Isas as potentially dangerous and confusing for clients, and would rather Isas revert to two simple options — cash or Investment."
Alan Chan, director at IFS Wealth & Pensions, agreed Isas had become too complicated and thought there were "so many different types of account", many people didn't know how they interacted with each other in terms of allowances.
He said he was particularly concerned with the Innovative Finance Isa as it was sometimes marketed as low risk despite investing in peer-to-peer lending and other risky investments.
Mr Chan added: "Isas have been very popular but I feel sooner or later the government will run the risk of tarnishing the Isa name and damaging consumer confidence in Isas."
What do you think about the issues raised by this story? Email us on firstname.lastname@example.org to let us know.