By Suzanna Kerridge, 7 July 1998 08:18
NEWS The UK Government's plans to replace tax-free Tessa and PEP savings schemes have run into trouble, after financial companies claimed their computer systems will not be ready in time. According to research by the New Direction Finance Opal (NDF), the Individual Savings Accounts (ISAs) are scheduled for introduction on 6 April 1999, but the strain of existing Year 2000 and EMU projects means many will not be able to offer a full range of products. Anthony Stack, managing director at NDF, claimed 80 per cent of financial providers will not meet the April deadline. "There are limited time and resources, especially with Year 2000 and EMU, which will force companies down the road of offering one or two of the three ISA products," he said. Stack estimates the delay will cost finance firms an estimated £5bn in lost revenue. "The difficulties are twofold. For organisations linking existing systems, it is difficult if not impossible. Also, developing software takes a significant amount of time: there is no lack of will, it is purely a practical constraint," he said.
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