Bit of sensationalism about the headline, nonetheless it's interesting to see how the traditional players view the IIA (PIA).
Greater administrative, tax and reporting requirements in Ireland would favour “scaled providers” such as banks and life assurance companies, Davy said. Online brokers are also expected to offer accounts.
“Applying a range of fee outcomes to our annual flow assumptions implies €100-€400 million of annual fee income by 2035, with the opportunity building as PIA assets accumulate,” it said.
“The onboarding and administrative requirements for PIAs should favour established providers over smaller, more niche providers, resulting in the Irish banks as natural beneficiaries,” Davy said.
Authors Thomas Ryan and Diarmaid Sheridan of Davy said the estimate of cumulative fees was based on an assumption that providers would charge 0.25-1 per cent of the account balance in annual fees.
www.irishtimes.com
Greater administrative, tax and reporting requirements in Ireland would favour “scaled providers” such as banks and life assurance companies, Davy said. Online brokers are also expected to offer accounts.
“Applying a range of fee outcomes to our annual flow assumptions implies €100-€400 million of annual fee income by 2035, with the opportunity building as PIA assets accumulate,” it said.
“The onboarding and administrative requirements for PIAs should favour established providers over smaller, more niche providers, resulting in the Irish banks as natural beneficiaries,” Davy said.
Authors Thomas Ryan and Diarmaid Sheridan of Davy said the estimate of cumulative fees was based on an assumption that providers would charge 0.25-1 per cent of the account balance in annual fees.
New Government investment accounts could generate up to €400m in fees for banks
Davy estimates that – at peak – up to €4 billion in annual investment could flow into accounts