Posted on by Tolu Akisanya

Press Release

PIMFA Calls for FCA to Postpone Implementation of Revised FOS Compensation Limits

Monday 25th March 2019

PIMFA, the trade association for investment managers and financial advisers, calls for the Financial Conduct Authority (FCA) to postpone implementation of revised Financial Ombudsman Service (FOS) compensation limits.

Following the publication of PS19/8, which increased the FOS’s compensation limit to £350,000, we have been assessing the impact with our member firms, particularly those firms who are currently seeking to renew their Professional Indemnity Insurance (PII). It is clear, with less than one week to go before the rules are implemented on 1st April 2019, that a number of insurance companies are not yet in a position to confirm whether or not they will able to offer terms reflecting the increased limit. Many firms currently seeking to renew their cover will not be able to obtain cover reflecting the revised FOS limit by 1st April 2019.

Ian Cornwall, Director of Regulation at PIMFA, said:

“The impact on the PII market was an area of key concern flagged by PIMFA in our submission to the consultation paper. We are disappointed that in setting an implementation date of 1st April 2019 the FCA has failed to properly assess the impact on insurance companies and their ability to offer terms reflecting the changes in the compensation limit. The FCA must immediately postpone the implementation of the rules and revisit the impact of the increase in the compensation limit on the PII market.”

 

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Notes for Editors

About PIMFA – the Personal Investment Management & Financial Advice Association

  • PIMFA is the 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.
  • PIMFAleads 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 28 years – read more.
  • Further information can be found at pimfa.co.uk
  • To become a member of PIMFA for access to training, benefits and discounts, please visit https://www.pimfa.co.uk/become-a-member or contact us directly at membership@pimfa.co.uk


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