Supporting the UK's growth businesses

The trade body for the UK's investment community pointed towards a need to improve support for small and medium-sized enterprises, namely through a government-led industry review to bring these companies onto the stock market.

“We believe flotation as a public listed company is the most desirable outcome: not only does it help the company to raise the funds at the most efficient price, but it also imposes market discipline on a company: a greater plurality of owners; a codified standard of governance; and greater scrutiny by market authorities,” said the WMA in a statement.

Tax-efficient investment tools

The WMA highlighted the role tax-efficient investment schemes play in encouraging domestic investment and promoting a long-term savings culture. It called particular attention to the success of the latest of such schemes introduced – Individual Savings Accounts – but stated that stamp duty exemptions on AIM shares could be extended further to cover equity ISAs and Self-Invested Personal Pensions.

The association said such an extension would favour both investors and the companies they fund, while offering a “negligible impact to the exchequer”.

"ISAs already serve as a more flexible complement to personal pensions. This flexibility could be extended to enable individuals to occasionally deposit cash windfalls into ISAs. A brief investment window could be opened for individuals every 10 years or so – a period of a few weeks in which the individual could invest any larger cash sums such as inheritances or other lump sums, subject to appropriate limits."

Homebuyer accounts

To somewhat lighten the load and length of time it takes to save for a deposit on one's first property, the WMA suggests individuals should be able to manage their own equities-based homebuyer account to help them make that first step onto the property ladder. Such an account would allow prospective homebuyers tax-free savings in shares and/or funds.

Quarterly fund reporting

Last on the WMA's list of recommendations for the looming budget plan is the enforcement of compulsory fund reporting on a quarterly basis.

“To reduce and prevent secret briefings to large fund managers or shareholders, the WMA calls for a level playing field for small investors via the government or regulators enforcing the public quarterly reporting of funds,” the WMA said.

The WMA represents 186 wealth management firms and associate members. Its member firms manage over £650 billion ($958 billion) of wealth in the UK, Ireland, the Channel Islands and the Isle of Man.