PIMFA calls for FCA to make better use of data in supervising Appointed Representatives

3 December 2021

PIMFA calls for FCA to make better use of data in supervising Appointed Representatives

PIMFA, the trade association for wealth management, investment services and the investment and financial advice industry, has today (3 December) called on the Financial Conduct Authority (FCA) to make better use of the data it collects when supervising Appointed Representative (AR) firms.

It came as PIMFA responded to the launch of the FCA’s consultation paper: Improving the Appointed Representatives regime.

Simon Harrington, Senior Policy Adviser at PIMFA commented:

“The FCA has clearly identified issues within the AR model which are not working well for consumers. Given the relative size of the AR Universe, we believe that a data-led approach is the right one provided that it is proportionate.

“As we have set out previously to the FCA larger Principals, which are directly authorised already have developed oversight models of their ARs and we hope that while these proposed changes may lead to some tweaks to their model, it will not represent a huge overhaul.

“The challenge for the Regulator is how it uses any additional data collected in its supervision and enforcement activities. It is clear from the data provided that significant harm does enter the market through elements of the AR regime.

“The Regulator already collects a substantial amount of data at great financial and resource cost to the industry and we have little evidence of what it does with it. These additional requirements placed on firms who are already more than fulfilling their obligations with regards to being Principals will only be worthwhile if the bad actors in the market either reform or leave.”

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About PIMFA – the Personal Investment Management & Financial Advice Association

• PIMFA is the trade association for firms that provide investment management, investment services and advice to everyone from individuals and families to charities, pension funds, trusts and companies.
• The sector currently looks after £1.65 trillion in private savings and investments and employs over 63,000 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 recommendations to the FCA regarding the Future of Advice, the Future of Supervision, & 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 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