Brokerage firm IG Group has launched a new campaign to try and bolster the UK’s faltering stock market.
Called ‘SOS’ – ‘Save Our Stock market’ – the new campaign is aimed at rejuvenating the market for publicly traded companies.
The London-listed brokerage group has made a four-point plan, including a call to scrap stamp duty.
Investors buying UK shares have to pay a 0.5% tax on any investments they make. This obviously has a large impact on purchase price and has been cited as one of the main reasons that investors don’t want to buy UK shares.
Another key point is ending cash ISAs. These are tax efficient accounts available to UK investors, with any gains not subject to tax on interest or income. UK investors also have access to stocks and shares ISAs, which have the same benefits.
However, there has been a lot of criticism about the amount that investors park in cash ISAs, with the argument being that cash holdings would better serve investors and the UK economy by being invested in the stock market.
The other two points that IG is advocating for are providing tax relief to people who invest in UK stocks and pushing the Financial Conduct Authority, the UK financial regulator, to stop being so heavy handed with anti-growth rules, like ‘Consumer Duty’.
Is it just a marketing campaign?
No doubt the suggestions IG is making would be beneficial to the UK’s stock market, although the ship has probably already sailed on that front.
The campaign is interesting as a marketing campaign though.
If you look back a couple of month’s ago, IG launched a high interest product on share dealing accounts. The obvious goal there was to get more money into its investment platform.
The SOS campaign has worked in a somewhat similar way. There is little to no cost for the launch, as all the noise around it has been PR-driven.
Then if you go on the actual campaign page on the broker’s website, it is basically a landing page, which looks like it has been designed to get you to open an account with the firm.
In other words, the campaign serves two purposes. Yes, it could further the reforms needed to make the UK stock market more attractive. But it’s also free PR for IG Group and a way to get people on their platform.
