Two thirds of advisers believe ISA market has become unnecessarily complex

ISAs remain the ideal tax efficient savings vehicle to complement pensions, but there is a real danger creeping complexity will leave new investors completely bamboozled. This has been borne out by our consumer research, which shows half of Brits agree the different versions of ISAs make them too complicated and that a single product would make them easier to understand.

This view is reflected in our adviser research, with around two thirds of respondents agreeing unnecessary complexity has crept into the market and more than 8 in 10 supporting AJ Bell’s proposal to combine the key features of ISAs in a single product.

Unnecessary complexity is the enemy of engagement and good consumer outcomes. In the ISA market, the mind-bending array of options risks putting people off altogether, potentially dampening the impact of wider efforts from the FCA to get more people investing for the long-term.

As the government and regulator ramp up efforts to boost advice and guidance, it is vital the products people engage with are as easy to understand as possible. ISA simplification could be a game changer in this regard, making life easier for millions of investors and would-be investors.