Steven Cameron, Pensions Director at Aegon comments on the UK ISA proposals, warning that if implemented the product will fail to meet Government objectives or generate wider consumer demand.

Responding to the HM Treasury consultation on the UK ISA (which closes today, Thursday 6th June), Aegon says the proposed product is unlikely to significantly boost ‘true’ UK investment and is calling for a post-Election review to explore alternatives.

Steven Cameron, Pensions Director at Aegon said:

The UK ISA, as proposed in the HM Treasury consultation, is unlikely to deliver any significant boost to investment in UK businesses and will also fail to have widespread appeal with consumers.

With the Treasury unlikely to review responses ahead of the Election, we hope whoever is in power on 5^th July will be open to exploring alternatives.

We understand why any future Government would wish to encourage greater investment by UK retail investors in the UK economy. But the global reach of UK stock market means investing in UK listed companies isn't necessarily the same as investing in the UK.

Furthermore, we do not see the UK ISA as having widespread appeal. It’s target market will be the small proportion of retail investors who regularly max out their current ISA allowance in stocks and shares ISAs and who are particularly attracted to UK investments. There may be alternative approaches which would attract a wider range of UK retail investors to ‘buy British’ such as requiring all retail funds and products to provide clear upfront disclosures of the proportion of UK investments held.

Full press release: UK ISA proposals fail to win Aegon UK’s vote

✉️ Susan McDonald, Head of PR, Aegon, 07798 924787 / Susan.McDonald@aegon.co.uk