Investment managers call on the Government to boost levels of investment and help UK households secure their financial futures
FOR IMMEDIATE RELEASE
Ahead of the Autumn Statement, the Investment Association (IA) is calling on the Government to take action to boost levels of investment and drive growth in the UK, while helping UK households better secure their financial futures.
As part of the drive to improve growth, investment managers have asked the Government to make it easier to invest into UK companies and infrastructure projects. This includes building on the momentum from the Mansion House Pension reforms to further unlock UK pension capital for investment into unlisted equities and other private assets by replacing the focus on cost in DC investments to a focus on value. In its submission, the IA has also highlighted the importance of a clear UK Net Zero plan to ensure there is a pipeline of investible opportunities in the UK.
Helping UK households better secure their financial futures is also a priority. Earlier this year, an IA commissioned survey with Ipsos revealed only 39% of the UK adult population actively invest beyond their pension. With nearly 50% of that population under the age of 35, there is a significant opportunity to increase the number of people investing, which would improve their long-term financial resilience and while also releasing more capital for investing productively in the economy. This age group is already showing they recognise the need to plan for their financial futures as half are making investments today, the opportunity is to make it easier for more of them to save more today.
In particular, the IA is calling for the Government to make progress on addressing the advice gap as well as for the modernisation of ISAs including increasing the allowance in line with inflation and simplification through a review of the structure of ISAs to improve outcomes for younger investors and the self-employed. The IA continues to call for the inclusion of the Long-Term Asset Fund (LTAF) in the ISA regime to allow UK investors greater access to innovative, high-growth companies and promote longer term savings.
Underpinning these two objectives is the need to ensure the UK investment management industry remains globally competitive and that regulation is focussed on enabling growth and innovation.
Chris Cummings, Chief Executive of the IA, said:
“We share the Government’s vision of an open, sustainable, and technologically advanced financial services sector, however there is more that can be done to achieve these aims. That’s why in this Autumn Statement we’re calling on the Chancellor to introduce a range of measures which will empower people to invest, drive investment into UK businesses, and ensure the UK remains a competitive place for investment managers to do business.”
Notes to Editors:
For further information, please contact:
Helen Ayres, Head of Communications: [email protected]
T: +44 (0)20 7269 4620
Helen Moore, Communications Manager: [email protected]
+44 7596 872562
Arianna Schardt, Communications Executive: [email protected]
T: +44 (0)20 7269 4625
IA Press Office: [email protected]
About the Investment Association (IA):
- The IA champions UK investment management, supporting British savers, investors and businesses. Our 250 members manage £8.8 trillion of assets and the investment management industry supports 126,400 jobs across the UK.
- Our mission is to make investment better. Better for clients, so they achieve their financial goals. Better for companies, so they get the capital they need to grow. And better for the economy, so everyone prospers.
- Our purpose is to ensure investment managers are in the best possible position to:
- Build people’s resilience to financial adversity
- Help people achieve their financial aspirations
- Enable people to maintain a decent standard of living as they grow older
- Contribute to economic growth through the efficient allocation of capital.
- The money our members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.
- The UK is the second largest investment management centre in the world, after the US and manages 37% of all assets managed in Europe.