Nov 2 2006
Investment fund provider Fidelity International has welcomed a government decision to make individual savings accounts (Isas) permanent as of 2010.
The group has said that the move by the government recognised the role played by Isas in fostering a long-term savings culture in the UK.
Other changes announced by the government included the harmonisation of personal equity plan (Pep) rules with Isas and the ending of the distinction between mini and maxi Isas.
Richard Wastcoat, UK managing director of Fidelity International, said: "Now that the government has confirmed their ongoing commitment to Isas, we would like to see this taken a step further with an increase in annual limits."
He added that the other changes seemed prudent, but that the company would have to examine the details more carefully to properly comprehend the advantages for investors.
In his address to the Pep and Isa Management Association, economic secretary to the treasury Ed Balls, commented that one in four people from low-income groups had taken out an Isa, compared to the one in seven who had previously taken out a tax exempt special savings account or Pep.
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