The introduction of a British Isa could raise challenges for firms complying with the Consumer Duty rules and regulations as it is “a very niche product”.
This is according to Aegon pensions director Steven Cameron, who believes that it would have a “particularly narrow target market”, which goes against the duty.
The Financial Conduct Authority (FCA) legislation that came into effect in July 2023 states providers must design products that offer value with a specific target market in mind.
During the Spring Budget 2024, chancellor Jeremy Hunt unveiled the British Isa.
It will come in the form of an extra £5,000 tax-free allowance to encourage UK retail investment. The existing Isa allowance is £20,000.
As Cameron said, the expected primary appeal of the British Isa is to individuals who already fully use their existing £20,000 Isa allowance.
He added: “Even for individuals ‘maxing out’ their stocks and shares Isas,…
