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Hargreaves Lansdown planning workplace Isa

Hargreaves Lansdown is understood to be launching a workplace Isa or an equivalent corporate tax-free savings vehicle to complement personal accounts.

Money Marketing understands the product is expected to launch in the next month or so but Hargreaves would not comment on the plans.

The Tories have recently said that they are looking at introducing flexible lifetime savings accounts and workplace Isas for lower earners, perhaps as an alternative to personal accounts. Plans for a lifetime savings account were included in the last Tory manifesto in 2005.

Hargreaves Lansdown head of pensions research Tom McPhail says: “There is widespread interest in the industry in developing savings vehicles such as share plans, corporate Isas and flexible Sipps that would sit alongside personal accounts.”

Richard Jacobs Trustee and Pension Services director Richard Jacobs says: “Hargreaves has good connections with employers so it is a natural extension to their group Sipp. I can see it being as successful as the Standard Life Sipp.

“The execution-only administration works very well so to move into this market should be relatively effortless. I think a workplace Isa will be hugely successful. No one has done this before.”


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There are 8 comments at the moment, we would love to hear your opinion too.

  1. Their comment that no one has done this before is a little superior. There are lots of IFA’s doing this all the time, unfortunately there is very little in it for them, as fees for advice are still a dirty word for most lower earnings clients, who on the whole want something for nothing thanks to the great consumer champion organisations such as Which etc who quite often get too focused on cost. ie the cost of everything and the value of nothing.

    The result of all this wonderful new world of no cross subsidies is that the banks have tended to pick up the business and offer this service all the time, albeit badly on the whole, as mostly tied to their own products on a commission only basis. Who will pay for this wonderful beast. I suppose HL are hoping to corner the market here and if they can get the volumes, maybe they can erk something out of it under trail commisisons which potentially could be quite large, as long as the potental customers dont want any advice of course, god forbid!
    So good luck to you HL the banks could do with some competition !

  2. edward ross-hurst 11th November 2009 at 11:16 am

    As usual this company displays a forward thinking, inovative product that is exactly what is required.
    Wouldn’t mind a job with them!!

  3. I suppose you can’t knock Hargreaves Lansdown for always looking for fresh ways to get yet more money into their own products, though one has to wonder whose best interests, really, are likely to be served by this new initiative.

    Yeah, sure it’s good for people to save, but in my view a greater immediate priority should be for the industry as whole to campaign for genuine pension simplification rather than increased fragmentation of retirement savings.

    Let’s see now ~ I’ve got three sets of preserved benefits from past employment (which should be reviewed and possibly amalgamated, but I can’t afford the fees for that to be done), my current employer contributes to a PP (which may be rolled over into a Personal Account, whatever that is), then I’ve got my HL SIPP on the side (apparently all singing and all dancing, though whether or not I actually need one, I’m still not quite sure and I’ll still get caught by the annuity trap). Then I’ve also got my new HL ISA, my employer’s ShareSave plan and money in a couple of building society accounts.

    But none of the various parties involved is prepared to pull it all together for me in terms I can understand at a remotely affordable price.

  4. We’d wanetd to do something like this back in 2002 for some of the employers we dealt with using a direct from payroll deduction for anyone wanting to contibute to an ISA, but couldn’d find any providers already doing it and we were too small to do it ourselves. Good luck to HL, I thought it was a good idea in 2002 and still do now.
    As Julian says, to take it to the next stage, what is then needed is someone prepared to pull it all together for a client in terms a client can understand at a remotely affordable price. There are many IFAs out there prepared to do the pulling together, but it needs providers (perhaps including HL) to recognise that adviser charging is the way to do this and that were HL to allow appointment of a non HL adviser as agent to the client, this may help clients find someone who’ll pull it together at no additional cost to HL.

  5. The idea is a good one, but when will people start to realise that an adviser recommending their own platform or their own fund must have an agency problem, a systemic risk problem and a labelling problem

  6. I’m pretty sure that much of the interest in workplace ISAs is because they seem so much simpler and accessible than pensions.

    That, in turn, is a result of the failure to keep up the fresh thinking that we briefly glimpsed with the simplification green paper back in 2002. What we’ve had instead is years of layer upon layer upon layer of additional regulation and “guidance”.

    If a new government means new layers, it will intensify the problems that already exist for the public, advisers and providers. Getting people to save more is a good start but we especially need to get people to save more FOR RETIREMENT. I can’t see a step change happening without a step change to genuine simplification.

  7. The society is facing problems with such laws. This has to go legal and it’s needed to be sorted at the earlier.

    Compare ISAs

  8. the fresh thinking that we briefly glimpsed with the simplification green paper back it will intensify the problems that already exist for the public.
    Personal ISA

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