The introduction of the Lifetime Individual Savings Account (LISA) was announced in the March 2016 Budget. The LISA will be available to investors from 6 April 2017 and is intended to help adults under the age of 40 to save or invest flexibly for two purposes: to provide a deposit for a first home and / or to save for retirement.

On 16 November 2016, we blogged that the FCA had published Consultation Paper 16/32: Handbook changes to reflect the introduction of the Lifetime Individual Savings Account (ISA) (CP16/32). In CP16/32 the FCA proposed addressing the risks of the LISA through an ‘enhanced ISA’ approach, i.e. by amending its Handbook requirements as they relate to ISAs in terms of: communications, information disclosures, cancellation rights and client assets.

The FCA has now published Policy Statement 17/4: Handbook changes to reflect the introduction of the Lifetime ISA (PS17/4). In PS17/4 the FCA summarises the feedback it received to CP16/32 and provides its final responses. The FCA also publishes the resulting rules and guidance.

The rules and guidance will come into force from 6 April 2017 and firms will need to comply with them from that date.

View FCA policy statement on Handbook changes to reflect Lifetime ISA introduction, 7 March 2017