Nov 27 2006
Fidelity International has expressed its support for the recently announced plans to restructure the existing individual savings account (Isa) system.
It has welcomed the statement by economic secretary to the treasury Ed Balls to move to a simpler system encompassing two types of Isa, cash and equity, with investors able to transfer funds from existing cash Isas into equity Isas without annual limits being affected.
Richard Wastcoat, UK managing director of Fidelity International, said: "Our experience is that savers were often confused about the current mini and maxi Isa structure and the proposed simpler structure is good news and will encourage a long-term savings mentality."
He added that plans to allow transfers from cash to equity Isas would also assist in the encouragement of long-term savings.
Fidelity International added that it still believed that the annual limit of investment in the accounts should be subject to an urgent review in order to make sure people are able to adequately save for their future using Isas.
The Investment Management Association also backed the government's moves, describing the proposed changes as "good news" for those with cash savings looking to invest in the stock market.
