Lifetime ISAs: Advice for applicants

Savings (Government Contributions) Bill – in a Public Bill Committee at 9:25 am on 1 November 2016.

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‘(1) The Secretary of State must make provision by regulations for all applicants for a Lifetime ISA to have independent financial advice regarding the decision to save in a Lifetime ISA or through a pension made available to them.

(2) Any applicant that opts in to the services offered under subsection (1) shall be given a signed declaration by that service provider outlining the financial advice that applicant has received.

(3) Any provider of a Lifetime ISA must confirm whether the applicant—

(a) intends to use the Lifetime ISA for the purposes of paragraph 7 (1)(b) of Schedule 1,

(b) has a signed declaration of financial advice under subsection (2),

(c) is enrolled on a workplace pension scheme or is self-employed.

(4) Where the provider determines that the applicant is—

(a) self-employed and does not participate in a pension scheme,

(b) not enrolled on a workplace pension scheme,

(c) does not intend to use the Lifetime ISA for the purposes of paragraph 7(1)(b) of Schedule 1, or

(d) does not have a signed declaration of financial advice under subsection (2)

the provider must provide information to the applicant about the independent financial advice available to them under subsection (1).’.—

This new clause would place a duty on the Secretary of State to make regulations that ensure all applicants for a Lifetime ISA receive independent financial advice.

Brought up, and read the First time.

Question put, That the clause be read a Second time.

The Committee divided:

Ayes 6, Noes 10.

Division number 6 Christmas Tree Industry — Lifetime ISAs: Advice for applicants

Aye: 6 MPs

No: 10 MPs

Aye: A-Z by last name

No: A-Z by last name

Question accordingly negatived.

New Clause 4