Little regulators can do to stop fraud without action from Government 

27 January 2021

Little regulators can do to stop fraud without action from Government 

PIMFA, the trade association for the wealth management and financial advice industry, is disappointed but not surprised by the latest data from Action Fraud showing the average fraud suffered by victims amounted to £45,000. Without change to hold online platforms to account this is only likely to get worse.

Liz Field, chief executive of PIMFA, commented: “Website cloning of legitimate financial services firms and other forms of online fraud are becoming more prevalent, and are something we have been warning about for some time. Such scams show how sophisticated fraudsters have become. It is a cause of deep frustration to our members and the Regulator that they can do little more themselves to combat these criminals and prevent harm from being perpetuated, than report such frauds to Internet Service Providers (ISPs), Domain Name Registration services and online platforms.

“The victims of such frauds are left to turn to the Financial Services Compensation Scheme but every person that has had to do so has, in PIMFA’s view, already suffered a bad outcome that could have been avoided.

“One way such frauds could be prevented would be for the Government to include economic harm within its upcoming Online Safety Bill. In doing so it could require online platforms, ISPs and Domain Name Registration services, to take swifter action against fraudsters, or take preventative action to stop fraudsters reaching their victims in the first place. Such a move has widespread industry support and it is an opportunity that should be grasped.”

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Notes for Editors

About PIMFA – the Personal Investment Management & Financial Advice Association

• PIMFA is the trade association for firms that provide investment management and financial advice to everyone from individuals and families to charities, pension funds, trusts and companies.
• The sector currently looks after £1.5 trillion in private savings and investments and employs over 55,000 people.
• 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 has made numerous reccommendations to the FCA regarding the Future of Supervision and the FSCS levy  – read more.
• 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 since 1991 – read more.
• Further information can be found at www.pimfa.co.uk

Contact

For further information on this release or other press matters please contact:

• Matthew West, PIMFA PR Manager – MatthewW@pimfa.co.uk, +44 (0)20 7382 0376
• Sheena Gillett, PIMFA Communications & PR Director – sheenag@pimfa.co.uk, +44 (0)20 7011 9869 / +44 (0)7979 493225