Posted on by Sheena Gillett

Press Release

WMA responds to Osborne’s budget to ‘put the next generation first’ and ‘get investors investing’

16th March 2016

As a leading advocate for establishing a culture of investment in the UK the Wealth Management Association (WMA) met announcements in Osborne’s budget to ‘put the next generation first’ and ‘get investors investing’ with enthusiasm.

While we await the detail in future consultations, the initial proposals to start a ‘Lifetime ISA’ enabling those under 40 to save up to £4000 a year, with the Government contributing £1 for every £4 put away by investors, is a step toward this goal.  This generation, often referred to as Millennials, could potentially be one of the first to be worse off than their parents1 and it is cited that 53% of 26-35 year olds have no pension plan whatsoever2, so reforms to encourage investment and planning for their future are urgently needed.

Of course investing for your future is an important consideration for everyone and it is encouraging to see this acknowledged again by the Government by the further increase of the current ISA limit from £15250 to £20000, and also the cut in Capital Gains Tax from 28% to 20% (18% to 10% for basic rate taxpayers) which will help long term retail share owners take advantage of any rise in the value of their holdings for their retirement.

Commenting on the budget, WMA Chief Executive Liz Field said:

“These initiatives are very welcome as we continue to work towards establishing a stronger and more widespread investment culture in the UK.  Saving for your future through investing is at the heart of our industry, and the Chancellor’s commitment to ‘get investors investing’ through raising the current ISA limit and creating a lifetime ISA for those under 40 is crucial for the UK as a growing population with increasing longevity.

This chimes well with the work we have been undertaking at the WMA and the launch of our Millennials Forum at the beginning of the year.  This group, made up of 30 to 40 year olds from within the WMA community, is currently debating the way the industry can meet the challenges faced by current and future generations.  These findings will be published in the Summer”.

– Ends –

Notes for Editors

References

1. http://www.goldmansachs.com/our-thinking/pages/millennials/

2. https://www.ubs.com/content/dam/WealthManagementAmericas/documents/investor-watch-1Q2014-report.pdf


About the Wealth Management Association (WMA)

  • The Wealth Management Association (WMA) is a trade association that represents 186 wealth management firms (full members) and associate members who provide professional services to our full member firms.
  • WMA members firms look after over £670 billion of wealth for over 4 million retail investors.
  •  WMA full members deal in stocks, shares and other financial instruments for individuals, trusts and charities through a range of services spanning execution only, advisory and discretionary fund management.
  • The WMA exists to support its members and their clients in the following ways:
    • To be an advocate for the sector with governments, regulators and the wider financial services community;
    • To influence policy and also decision makers within the wider sector to the benefit of WMA members and their clients;
    • To research and provide definitive information about the sector as required for members and in support of the influencing and advocacy objectives;
    • To be a thought leader, to lead and stimulate debate and make members aware of emerging trends; challenging and provoking change.
    • Facilitating the sharing of good practice, enabling the membership as a whole to benefit from the latest developments affecting the sector as well as providing support to enable them to develop good prescribe and overcome challenges.
  • WMA firms operate across more than 580 sites, employing over 32 000 staff.
  • These firms also run over 5.5 million client portfolios and carry out over 20 million trades a year.

Contact

If you would like further information on this release or other press matters please contact:

www.thewma.co.uk

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