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Global Funds Managers have increased the pressure on UK Chancellor Rachel Reeves to ‘simplify’ the British regime of savings without taxes, abolishing the popular ISA product, in the last attempt to put more money into the London market market.
Older Blackkock executives, Fidelity International, Schroders, Abrdn and some of the world’s largest banks met Reeves on Wednesday to talk about how to compete in the financial services and increase British economic growth in the UK.
One person familiar with the details of the meeting said that there is a debate on simplification of tax-free savings, with the aim of encouraging more individual investors to put money in shares and shares-Potez that would be written the end of the independent money isa But it could help encourage domestic shares.
The move comes after the Financial Times discovered last month that large city companies have called Reeves Scali return taxes for cash isasand open the way for the highest supplementation on the savings market since the products were first introduced in 1999.
Reeves allies say the chancellor is interested in the ISA -e reform. “It is open to ideas that increase investments in the United Kingdom shares. This problem occurs a lot. “
Treasury officials confirmed that the Downing 11 meeting included a debate on how to increase a retail investment in the British economy, and Reeves “listened to ideas.”
In the UK, there are four main ISA products, including Gotovina ISA – by far the most popular product, with almost £ 300 billion with total savings. Isa allows individuals to save up to £ 20,000 a year without income and tax on capital gain.
The chancellor does not want to distract the savings of a small scale from “the departure of something for a rainy day,” according to her allies, but believes that they could be a better return to their savings.
Older city executives claimed that many Isa -and distracts people from investing, urging only one Isa in which people can own shares, shares and cash.
Fidelity International, who has $ 893 billion under the administration, would not comment on the meeting, but said FT on the eve of the gathering to call the Government to create a unique, unique Isa product.
Fidelity said it would allow Gotovina, shares and shares to be held together in one account, with the aim of facilitating the investment, and suggested that the monetary part would be limited to £ 4,000.
“We have become a nation of savings, not investors,” said James Carter, head of the Platform Product Policy in Fidelity International.
“Collectively, we all have to do more to educate the society about risk and return. The only place that can be gathered is a government that supports the right goals and balance to achieve the outcomes we need. “
Fidelity International estimates that one Isa product could create 6.4 million new investors – in the amount of about 12 percent of adults in the UK. The fund leader estimates that twice as many consumers have money in cash of Isa from Isa shares.
However, the idea of abolishing Gotovina Isa has encountered criticism of consumer and professional in personal finances, as well as accusations of interests. Banks generate compensation by advising companies about raising money by selling stakes to institutions and individuals, while assets managers can benefit from more money poured into British capital funds.
Emma Reynolds, a new city minister, told the Lord House to the Committee of the Lords earlier this month: “Why do we have hundreds of billions of pounds in cash Isas? We have not been able to launch an investment culture. “
Paul Thwaite, executive director Natwest, said last week that he would “encourage any inspection of savings and investments”, including Isas.
“I think Isa -and they proved to be very successful. . . They play an important role, but I am open to an overview of whether the way they currently act is appropriate for the intention for today’s savings and investment markets. “
Reeves holds a number of meetings with leading city figures to develop a “growth strategy and competitiveness of financial services”. Financial services are one of eight key sectors of “growth” identified in Government industrial strategy.
The usual theme of these meetings was the obligation of the Government to increase the regulation, including facilitating financial companies Recruit the top talent from all over the world.
Additional Akila Quinio reporting
