Posted on by Nigel Ross-Scott

22 November 2023

PIMFA welcomes reforms to ISAs including proposals to allow fractional share ownership

PIMFA, the trade association for wealth management, investment services and the financial advice and planning industry has welcomed Government proposals to reform Individual Savings Accounts (ISA), particularly proposals to allow fractional share ownership within Stocks and Shares ISAs for the first time.

Simon Harrington, Head of Public Affairs at PIMFA, comments: “We welcome the Government’s proposals to allow savers to hold multiple subscriptions in the same type of Individual Savings Account (ISA). However, more welcome would have been to allow savers to hold both a cash ISA and a stocks and shares ISA. Allowing partial transfers between ISAs and removing the need to reapply for an existing ISA annually are also sensible moves.”

“Of more interest is the Government’s stated intention to permit certain fractional share contracts within ISAs. This could provide millions of mass market savers and investors to access high performing – albeit often expensive – shares in well-known companies as part of their portfolio.

“It is right that this area has been looked at by Government and clarified for firms wishing to engage in offering fractional shares to consumers. We consider this to be an extremely positive move and look forward to consulting with the Government on how this reform can be implemented.”

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 NOTES TO EDITORS

About PIMFA – the Personal Investment Management & Financial Advice Association

  • PIMFA is the trade association for firms that provide wealth management, investment services and the investment and financial advice to everyone from individuals and families to charities, pension funds, trusts and companies.
  • The sector currently looks after £1.65 trillion in private savings and investments and employs over 63,000 people.
  • PIMFA represents both full and associate member firms. Full members provide a range of financial solutions including financial advice, portfolio management, as well as investment and execution services. They assist everyone from individuals and families to charities and pension funds, all the way to trusts and companies.  Associate members provide professional services to the PIMFA community.
  • PIMFA  leads the debate on policy and regulatory recommendations to ensure that the UK remains a global centre of excellence in the wealth management, investment advice and financial planning arena. Our mission is to create an optimal operating environment so that its member firms can focus on delivering the best service to clients, providing responsible stewardship for their long-term savings and investments.
  • PIMFA has made numerous recommendations to the FCA regarding the Future of Advice, the Future of Supervision and the FSCS levy – read more.
  • PIMFA was created in 2017 as the outcome of a merger between the Association of Professional Financial Advisers (APFA) and the Wealth Management Association (WMA) with a history as a trade association since 1991 – read more.
  • Find out more about PIMFA’s Diversity and Inclusion work – read more
  • Further information can be found at pimfa.co.uk

Contact

For further information on this release or other press matters please contact:

Matthew West, PIMFA PR Manager – MatthewW@pimfa.co.uk, +44 (0)20 7382 0376

Sheena Gillett, PIMFA Communications & PR Director – sheenag@pimfa.co.uk, +44 (0)20 7011 9869