Aegon questions how providers of the Chancellor’s proposed British ISA will prove this meets FCA Consumer Duty requirements.
Steven Cameron, Pensions Director at Aegon said:
“While the Chancellor is keen to see the introduction of British ISAs, under the FCA’s Consumer Duty, providers must design products which offer value with a specific target market in mind. The proposed British ISA could raise challenges here as it will have a particularly narrow target market.
“The British ISA is expected to appeal primarily to individuals who already fully use their existing £20,000 ISA allowance.
“Even for individuals ‘maxing out’ their stocks and shares ISAs, there are questions over the appropriateness of increasing exposure to UK equities rather than a more geographically diversified portfolio. The Consumer Duty requires advisers to avoid causing foreseeable harm which will prompt…
