Andrew Cheseldine, consultant at LCP, warned delegates at the Corporate Adviser summit that there were challenges around eligibility for those taking out Isas and personal pensions, and that they would not simply be able to buy at the click of a button.
He pointed out that anyone buying into an Isa or a personal must be UK resident, and providers should take into account the fact that there are 2.5m non UK residents in the country who would not be eligible for all products on corporate wraps. Corporate wraps must deal with this issue, he argued. The issue would particularly affect advisers working with employers in the hospitality industry and other sectors employing large numbers of migrant workers.
Cheseldine added the danger of the Isa model, when compared as an alternative to pension, was that workers would take the money and spend it on something else.
