The LIsa was announced in this year’s Budget and was created to allow people under the age of 40 to save or invest flexibly for a deposit for a first home or save for retirement.
The FCA intends to regulate the LIsa in the same way as other ISA products with protections and restrictions on accessing funds.
Firms will be required to provide specific risk warnings at the point of sale and encourage consumers to maintain a diverse portfolio.
Firms will also have to remind consumers of early withdrawal charges and any other charges.
The FCA has suggested that firms provide a 30-day cancellation period for the sale of LIsa products.
These new rules are intended to protect consumers from the risks involved in LIsa products.
The LIsa will be available from April 2017.
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