Posted on by Nigel Ross-Scott

Press Release


PIMFA comments on The UK’s future economic partnership with the European Union

Date 5th March, 2018

PIMFA – the UK’s leading trade association for the personal investment management and financial advice sector – welcomes the Prime Minister’s clarification in her Mansion House speech of 2 March of key aspects of the Government’s aspirations for the post-Brexit UK/EU relationship.  We support in particular her commitment to a broader and deeper bespoke agreement than has previously been achieved and the inclusion within this of financial services. We have highlighted the importance of maintaining access to EU markets, funds, talent, and clients for our member firms and of keeping close links with our EU partners.

We continue to emphasise that clarity of design and intention are vital for medium and long-term business planning by firms.  Certainty about the future political and economic framework within which they will operate, including the roles of and relationships between specific institutions, encourages investment which will benefit retail clients by increasing service efficiency and keeping investment costs down.  This helps the maintenance of business continuity, minimises shocks, and assists the mitigation of any consumer detriment inherent in the Brexit process.

To achieve this ideal minimal disruption model it is essential to allow for a transition period in which law and regulation in UK financial services remain as close to the status quo as possible, and which has a flexible end-date determined by when the final UK/EU agreement is completed.  An artificially tight scenario with arbitrarily chosen early termination will not allow a proper post-Brexit agreement to be negotiated and brought into effect in an orderly manner, which itself will generate avoidable and debilitating uncertainty.

The management of possible legal and regulatory divergence in financial services in the post-Brexit era must be carefully undertaken and we welcome the Prime Minister’s statements of intent in this respect. The UK and EU will have the same sets of laws and regulations at the point of departure so binding commitments made at that time will be meaningful and beneficial, especially in highly regulated sectors such as financial services. Ongoing close consultation with our EU partners at all levels, from Government and Regulators through collective groupings such as associations down to individual firms, will be essential to the quality of this management process and we welcome the PM’s comments supporting this

PIMFA Deputy CEO John Barrass commented that: “It is essential for flexibility to be built into the timing of the end of transition so that a bespoke EU/UK agreement, with proper and agreed divergence management, can be negotiated to the advantage of all. To do otherwise could be detrimental to the quality of what is being agreed and have an adverse effect on businesses and citizens in both the UK and elsewhere in the EU.”

<ENDS>

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.

 

  • 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 June 2017 as the outcome of the merger between the Association of Professional Financial Advisers (APFA) and Wealth Management Association (WMA) – read more.

 

Contact

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

  • Sheena Gillett – PIMFA Head of PR & Communications, sheenag@pimfa.co.uk,
    +44 (0)20 7011 9869