Chancellor Rachel Reeves announced reforms to the stocks and shares ISA universe and pension fund investments. Long-term asset funds will be allowed in ISAs from April 2026, with a focus on improving returns for savers and access to capital for UK businesses. Reeves aims to eliminate excessive risk while supporting UK savers and the economy.
Reeves also unveiled plans to overhaul the pension system, encouraging DC funds to invest in private assets like infrastructure and growth projects. The government and FCA are working on targeted support for retail investors, promoting the benefits of retail investment and improving risk warnings. Changes to mortgage lending rules could help thousands more people secure a mortgage.
The financial industry welcomed the inclusion of private assets in ISAs and pensions. Alternative investments were deemed essential for long-term member outcomes. Changing the narrative on investment risk was supported, emphasizing the importance of understanding and managing risk for better financial outcomes. However, a mandate for schemes to invest in UK assets may pose challenges for trustees who prioritize their members’ best interests. Reeves announces reforms to address excessive regulation, allowing long-term asset funds in ISAs and pension funds to invest in a wider range of assets. Concerns persist about public finances and inflation exceeding target levels. Changes in banking industry to provide more working capital for lending and investment. Divergence in views on crypto between Reeves and Bailey, with a focus on innovation in blockchain technology and stablecoins. Bailey emphasizes the importance of digital technology in retail payments and bank accounts for promoting growth in the UK.
Read more at Morningstar.
Chancellor Rishi Sunak unveils reforms addressing excessive regulation. Investors can now include long-term asset funds in stocks and shares ISAs. Pension funds gain access to a broader array of assets under new rules announced by Sunak.: Private Assets to Be Allowed in Stocks and Shares ISAs