PIMFA welcomes transitional implementation outlined in Theresa May’s Brexit Speech – 25th September 2017

Avoidance of cliff edge chaos and access to skilled labour welcomed, alongside the opportunity for continued leadership via the highest standard of targeted regulation highlighted by PIMFA

PIMFA, the leading trade association for the personal investment management and financial advice sector in the UK, welcomes the Prime Minister’s pledge to ensure a smooth and orderly Brexit.

The PM outlined in Florence the Government’s desire for a structured transition arrangement following the end of the Article 50 notification period for the UK to the leave the EU. This will aim to create a phased process for implementing a departure which benefits all key parties by eliminating shocks and ensuring that business will only have to make one change to operational models at the end of the transition period itself. It includes the maintenance of open access to the widest possible pool of skilled labour that has been a key concern for industry. The Prime Ministers’ reassurance on this has been welcomed.

PIMFA stresses that the avoidance of a cliff-edge scenario for the financial services sector is essential to avoid endangering the value of the hard earned savings and investment of the private investor and creating chaos for the industry with by sudden changes to its regulatory framework and range of choices of investment vehicles.

In its response to the House of Lord’s Enquiry into Financial Regulation and Supervision following Brexit, PIMFA continue to argue in favour of a transition period with a minimum 2 year duration, along the lines described by the Prime Minister. PIMFA also make clear that in the future it will be for the UK to maintain the highest standards of regulation domestically and to be a continued exporter of quality driven regulation to European Colleagues and a broader international audience.

There may be an opportunity for domestic regulation to target more accurately the structures and business approaches specific to the UK following Brexit. But to ensure the best outcomes for consumers it will be essential for the UK to retain global leadership in regulation so others must seek equivalence to the UK, rather than vice versa.

Liz Field, CEO at PIMFA commented saying “we welcome these comments as we have continued to highlight the crucial need for a stable, orderly transition in our numerous responses to Government and in our appearance before the Treasury Select Committee last year”.

She added “We continue to work closely with our members and the government to develop appropriate guidance and help ensure the UK remains the global centre of excellence in investment management and financial advice, delivering first-rate services to private investors”.

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