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3 March 1999
TREASURY TO RESEARCH DEVELOPING ISA MARKET
The Treasury announced today a research contract designed to identify and track major trends in flows and charges as the market for Individual Savings Accounts (ISAs) develops after the launch on 6 April.
The research will involve surveying ISA providers, including measuring the extent to which CAT standard products are sold. The Treasury invites firms approached by the consultancy conducting the research to assist this important exercise by providing data for the survey. This will not identify contributing firms by name.
To provide a baseline for the first year of the ISA, it will also involve conducting a similar assessment of the final weeks of the present market, including PEPs. The Treasury, Inland Revenue and Financial Services Authority will use the results of the research for policy evaluation. The research will be carried out by the McKinsey consultancy.
Notes for Editors
1. The Individual Savings Account (ISA) is a tax exempt savings vehicle being introduced from 6 April as a replacement for Personal Equity Plans (PEPs) and Tax Exempt Special Savings Accounts (TESSAs).
2. It is targeted at new savers and those with low amounts to save and is guaranteed to run tax free for at least 10 years. There is no lock-in, no minimum subscription and no lifetime limit, and the account covers a wide range of investments in three components: cash (including National Savings); stocks and shares; and life insurance.
3. Media enquiries should be addressed to Charles Keseru in the Treasury press office on 0171 270 5188.
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