Isas are not proving too confusing for the public, according to IFA Network.
The network's survey of 1,061 people found nearly a quarter said their
main reason for taking out an Isa was to build up capital, 19 per cent to
aid their retirement planning and 13 per cent to support their children in
IFA Network says these findings dispel the image that Isas are too complex.
But the Consumers' Association warns that investors may fall foul of Isa
rules because of poor advice from advisers.
Due to the rush to sell Isas before the end of the tax year, the
Consumers' Association fears IFAs are not taking the time to explain the
Isa rules adequately.
The association says the differences between mini and maxi Isas and how
much can be invested are not clear.
Which? principal researcher Teresa Fritz says: “The survey is quite
contrary to a lot of research done not just by us but by also a lot of
other people in the industry.
“To be perfectly honest, none of us are going to know until we know how
many people have gone over the limit without knowing it.”
An IFA Network spokesman says: “Our view is that the Isa is actually quite
straightforward. For a number of consumers, especially those who take out a
cash product, Isas are very sound.”