Isas reshape to attract investors

by Gill Montia

Story link: Isas reshape to attract investors

The Investment Management Association (IMA) is urging would-be savers to take a good look at what Isas are available in the market, as a number of changes will be taking place following the introduction of new government regulations, in April 2008.

The economic secretary to the Treasury has announced that Isas, which are to be made available indefinitely, will in future allow investors to transfer funds from cash Isas into those investing in stocks and shares.

According to the IMA, savers who have built up cash Isas should consider making use of the new option to transfer some or all of the cash into those investing in stocks and shares.

The new measures are aimed at helping consumers building a savings portfolio and the changes, which should also simplifying saving through Isas, will abolish the current distinction between mini and maxi Isas.

In addition, from April of next year, all Personal Equity Plans will automatically become stocks and shares Isas.

More than 17 million people have invested in Isas since they were first launched in 1999 and the government is keen to build on this success.