Dec 8 2006
The Building Society Association (BSA) called for the government to allow savers to convert equity individual savings accounts (Isas) into cash Isas.
In the recent pre-Budget report, the chancellor confirmed that consumers would be able to covert their cash Isas into stock and shares accounts, a move welcomed by the Pep and Isa Managers' Association and Fidelity International.
Adrian Coles, director general of the BSA, said: "Making transfers one-way-only, as the chancellor proposes, means that errors of judgement or bad advice could not be rectified in a way that maintains the Isa tax exemptions."
He added that to permit investors to move funds from equity to cash Isas would enable savers to have a more diverse range of assets and take advantage from the reduced instability of cash investments.
Last month, the BSA described a move that would enable transfers of funds in this manner as "the next logical step" the Treasury should take to benefit lower-income savers.
