Commenting on today's report into Personal Accounts, Richard Saunders, Chief Executive of the Investment Management Association said:

"The Committee have produced a thoughtful and well-argued report into Personal Accounts.  We think they have rightly emphasised the need for simplicity, particularly in relation to the collection of contributions.  We welcome, in particular, the conclusion that the Government, at this stage, should not rule out the use of an improved PAYE system as part of the collection process.

In order for the scheme to be a success, involvement of all stakeholders and a robust governance system is crucial. We agree with the Committee that the further detailed work that needs to be done on the scheme will be important in this regard.

While we would not share all of the Committee's conclusions on the issue of contribution limits - which will serve to both protect the Government and the interests of savers in the scheme - we agree that there are ways of exploring the scope for flexibility in the application of these limits, as detailed in our response to the Government's White Paper."

-Ends-

For further information, please contact:
Helen Stephenson, Communications Officer, IMA, 020 7831 0898