Information: For immediate release Wednesday 3 November 1999

MID-TERM REPORT ON ISAS

In a speech today at the Money Marketing ISA Conference the Director General of AUTIF, Philip Warland, argued that it was too early to change the basic structure of ISAs. He said:

"ISAs will become, with one or two tweaks, an acceptable successor to PEPs and TESSAs. The image of ISAs is the responsibility of the ISA industry."

Among other points he made were:

• For the periods 6 April – 30 September investment fund PEPs had sold £5.6 bn in 1998.
• ISAs £3.5 bn in 1999.
• There had been a sharp fall in regular savings as a result of the introduction of ISAs.
• He set out why the maxi/mini structure had been adopted and why it was still valid
• There would be non-compliant ISAs, but AUTIF was convinced the Revenue would take a sensible line and understood why the Revenue would not change their public position at the moment
• The Banking Code should be strengthened to bring the handling of execution-only mini-cash ISAs in line with FSA regulations
• If simplification was sought the insurance element should go
• A minimum of £4,000 was needed for the stocks and shares element to keep the product viable.
• The PEP and ISA regulations should be aligned.
• Transfers from cash to stocks and shares should be allowed.

For further information please contact:

Philip Warland, Director General, AUTIF - 0171 831 0898
Anne McMeehan, Director of Communications, AUTIF - 0171 831 0898
Clare Arber, PR Manager, AUTIF - 0171 831 0898  

Attachment - Philip Warland's Speech