Financial services firms welcome appointment of Ros Altmann but call for a wider remit as the Savings Minister
11 May 2015 – The Savings and Investments Policy project1, (‘TSIP’, ‘the Project’), an unprecedented group of over 50 leading financial services companies, trade bodies and consumer groups, has welcomed the appointment of Ros Altmann as the new Minister for Pensions, but has urged the government to consider extending the brief to that of a dedicated Savings Minister.
Tony Stenning, Chairman of The Savings and Investments Policy project and Head of UK Retail at BlackRock says:
“We welcome the Conservative’s plan to appoint Ros Altmann as Pensions Minister, however, we believe that this role could be expanded to oversee all forms of consumer saving. More can and should be done to promote the benefits of long-term saving whilst also ensuring that the recent momentum around savings and investing is maintained.
“We believe the creation of a Savings Minister is critical to achieving this. The individual would be accountable for promoting and championing all forms of consumer saving within government – an essential role if we are to overcome the current culture of consumption fuelled predominantly by debt. This Minister would transcend departments and be a positive driver for change to create a framework where it is as easy to save as it is to get into debt.
“Saving, benefits everyone, ensuring growth, stability and prosperity for the future of the UK and its people. A failure to narrow the savings gap could adversely affect the UK’s GDP, so it is of critical economic as well as social importance.”
The policies proposed in March by TSIP include three focused at the wider financial services industry, with the remainder aimed at the Government:
1. Digital passport: developing a secure digital identity that can be used to revolutionise and simplify how consumers manage their money, making it easier to save money in the first instance as well as managing their savings pots
2. Increasing financial capability: making the provision of financial education more effective by enhancing consumer engagement and understanding of the benefits of savings through greater co-operation across financial services education programmes and working with government
3. Financial guidance: developing a framework for financial guidance that can be adopted by financial service firms, greatly increasing access to guidance for the public and supporting them in making sound financial decisions
4. Pensions taxation: provide expertise to any government led initiative to reform pension tax relief with a view to making the benefits of pension saving clearer, improving incentives and increasing overall levels of pension saving without incurring additional costs for the Treasury
5. Automatic escalation of pension contributions: Save More Tomorrow – using ’nudge’ techniques to encourage and facilitate employees to automatically increase their pension contributions by small increments as their income increases to levels that will provide a meaningful income in retirement
6. Savings Minister: create a new position with accountability for promoting all forms of consumer saving within government, to be a champion of financial education and guidance, and to promote ‘Invest in Britain’
Since March 2014, the TSIP group, which was founded by TISA2, has been meeting all the major political parties, HM Treasury, DWP and the FCA, outlining possible ways for the financial services industry, policy-makers, regulators and consumer groups to work together to maintain momentum from recent initiatives and to create a financially resilient society.
Please visit The Savings and Investment Policy project website, www.tisa.uk.com/savings-investments.html for further details about the project.
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Notes for Editors:
1. The Savings and Investments Policy project is working with a wide range of financial service companies, trade bodies and consumer groups to develop these pan-industry proposals. It is directed by an Executive Committee: Aviva, AXA Wealth, BNY Mellon, BlackRock, Ernst & Young, Henderson Global Investors, Intrinsic, J.P. Morgan Asset Management, Legal & General, Lloyds Banking Group, Nationwide, NatWest, Northern Trust, Old Mutual Wealth, Openwork, Pinsent Masons, RBS, Threadneedle Investments and TISA. Members of TSIP’s Advisory Board are: Ascentric, Association of British Insurers, Association of Professional Financial Advisers, Bravura Solutions, Building Societies Association, FairLife, Friends Life, Hargreaves Lansdown, Investec Wealth & Investment, Microsoft, Parker Fitzgerald, Schroders, Sesame Bankhall Group, SimplyBiz, Standard Life, TD Direct Investing, The Investment Association, True Potential, The Share Centre, Yorkshire Building Society and Zurich UK Life.
The above named organisations are members of The Savings and Investments Policy project. This group was consulted in developing the policy proposals set out in this document. None of the proposals should be assumed to be the individual policies of any of these organisations. They do, however, represent significant thought and debate and, whilst not all organisations have had the same level of involvement, they all welcome the opportunity these proposals provide for a constructive dialogue with government, regulators and other financial services stakeholders.
2. TISA is a not-for-profit membership association operating within the financial services industry. We represent the interests of over 145 member firms involved in the supply and distribution of savings and investment products and services.
TISA has a highly successful track record in working cooperatively with government, regulators, HMT, DWP and HMRC to improve the performance of the industry and the outcomes for consumers. Policy and regulation continues to be the major focus for our members with regard to corporate responsibility.
TISA and its members’ remit is evolving into a clearer focus on pro-active consultation in the regulatory world in order to influence policy and associated regulation before its creation, rather than reacting to issued policy directives. This will help to ensure a more considered policy creation from the authorities.