Posted on by Nigel Ross-Scott

Press Release

PIMFA comments on the FCA Mission Paper; Our Future Approach To Consumers

7th February 2018

PIMFA commented today (7th February) on the FCA’s consultation on its future approach to consumers and highlighted two areas of concern.

Firstly, that the FCA needs to ensure that it intervenes sufficiently early where there are signs of difficulty in the market so that consumers are protected quickly and compensation costs can be limited.

Secondly, that there are increasingly serious doubts about the effectiveness of depending mainly on disclosure as a consumer protection method. Constant mandating of the further disclosure of material information, whilst not also addressing the complexity and quantity of the information being disclosed and the growing evidence that retail consumers do not read it may not result in the appropriate regulatory outcomes.

John Barrass, PIMFA Deputy CEO, said;

“It’s important that the FCA invites feedback from stakeholders in the industry, such as advisers, as they have the experience of trying to balance generic rules, which are not always well targeted at particular details, alongside the specific needs and circumstances of their clients. Taking this valuable input into account can help the FCA reach a more balanced regulatory outcome and ensure that a full range of appropriate financial services, including sound advice from authorised and qualified professionals, is readily available to consumers”.

The full response can be read here.

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Notes for Editors

About PIMFA – the Personal Investment Management & Financial Advice Association

  • PIMFA is the UK’s leading trade association for firms that provide investment management and financial advice to everyone from individuals and families to charities, pension funds, trusts and companies.
  • PIMFA represents both full and associate member firms.
    Full members provide a range of financial solutions including financial advice, portfolio management, as well as investment and execution services. They assist everyone from individuals and families, to charities and pension funds, all the way to trusts and companies.
    Associate members provide professional services to the PIMFA community.
  • PIMFA leads the debate on policy and regulatory recommendations to ensure that the UK remains a global centre of excellence in the wealth management, investment advice and financial planning arena.  Our mission is to create an optimal operating environment so that its member firms can focus on delivering the best service to clients, providing responsible stewardship for their long-term savings and investments.
  • PIMFA was created in June 2017 as the outcome of the merger between the Association of Professional Financial Advisers (APFA) and Wealth Management Association (WMA) – read more.

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