Pensions director at Aegon, Steven Cameron, previously said the narrow target market could raise challenges under consumer duty.
A spokesperson for Aegon said: “We understand the chancellor’s desire to encourage greater UK investment, but despite the consultation paper explicitly stating it is not asking for views on alternative options, thought needs to be given as to whether the UK Isa is the best way of doing this for retail investors.
“Any product a firm launches must meet the FCA’s consumer duty requirements and as currently envisaged, we see major challenges here.
“Through consulting, the government may evolve its thinking including to broaden the target market and to cut down on complexity. We will be monitoring developments closely.”
The government’s consultation on the new Isa will run until June 6 and wants to hear from existing Isa providers on whether they would consider offering the new product, and what they would need to deliver it.
tara.o'connor@ft.com
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