Posted on by Sheena Gillett

Press Release – PIMFA Welcomes FCA’s Final Retirement Outcomes Review

28th June 2018

PIMFA – the UK’s personal investment management and financial advice association today welcomed FCA’s consultation paper – ‘Retirement Outcomes Review: Proposed changes to our rules and guidance’ (CP18/17).

In its comments it stated that it is vital that consumers are provided with the right levels of protection when they retire without it impinging upon the fundamental principles of the Freedom and Choice policy. At the heart of this report is a recognition of this fact and we believe that the measures put in place are both proportionate and appropriate.

Commenting on the report, PIMFA Senior Policy Adviser Simon Harrington said:
“This report strikes the right balance between protecting the most vulnerable consumers and encouraging consumers to exercise their individual freedom and choice.’

‘The introduction of multiple investment pathways hopefully overseen by strong, independent governance in a restricted choice architecture framework is a particularly welcome recommendation which should encourage consumers to fully understand their retirement options without fear of making the wrong decision. We believe that this is a logical solution to the disconnect between the principles of freedom and choice and automatic enrolment respectively.’

‘However, we want to be clear that whilst investment pathways are a welcome addition to the landscape to support non advised clients, we remain of the view – supported by the report’s findings – that individual outcomes will be better on an advised basis. We believe that the move to send out wake up packs at 50 will help engage individuals sooner, but believe that within them the advice allowance should be flagged alongside a requirement for providers to offer it. This is a missed opportunity that we are urging the Regulator to reconsider.”

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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 personal 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. 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 2017 as the outcome of a merger between the Association of Professional Financial Advisers (APFA) and the Wealth Management Association (WMA) with a history as a trade association going back for 27 years – read more.

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