Financial Services Ireland (FSI) has called for the simplification of investment vehicles for consumers, including changes to tax, in a push to make investing more attractive in advance of the implementation of the Savings and Investment Union (SIU).
This comes as part of FSI’s new five year strategy which it said provides a “roadmap to protect and drive forward” Ireland’s position as a competitive financial centre for domestic and international companies.
Irish Life CEO and chair of FSI Declan Bolge said the EU SIU is an “especially tangible and time-sensitive opportunity”, adding:
Mr Bolge said the first action in this area is “creating a blueprint for a simplified, tax-efficient investment vehicle for Irish consumers”.
According to data from the Central Bank of Ireland, as of the end of December, Irish households held €169.8bn in savings combined. FSI director Patricia Callan said we need to move towards creating an “investment culture” whereby people feel comfortable investing their savings.
“We think the best way to do that is through actually launching an Irish version of savings and investment accounts,” she said, adding that similar products are already available in nine other EU member states.
“It’s very likely that the types of products we’re talking about, that deliver on SIU, are going to be retail investments.
“So its exchange traded funds (ETFs), we’re already a leading domicile for ETFs,’ she said.
Under the current system gains from investments in individual company shares are subject to a 33% capital gains tax while gains from exchange traded funds are subject to a 38% tax upon exiting the position, or after eight years under the deemed disposal rule.
Tánaiste and finance minister Simon Harris said: “I look forward to working with FSI; in particular, in ensuring Irish savers benefit from the objectives of the Savings and Investment Union.”
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