Posted on by Nigel Ross-Scott

Press Release

PIMFA responds to Andrew Bailey Mansion House speech

29th October 2018

In reaction to FCA’s CEO Andrew Bailey’s recent Mansion House speech, PIMFA, the leading association of firms serving retail clients in the wealth management, broking, and financial advice sectors made the following comments;

Firstly, for PIMFA firms, the change to the UK’s international context entailed in the departure from the EU will mean substantial alterations to the way in which they conduct business for clients in other EU member states and even to an extent in the UK.  At present this will be the case whether or not there is a deal, since no deal currently on offer offsets the impact that Brexit will have on retail client access, access to funds, and cross-border brokerage.  In order to mitigate disruption PIMFA has argued consistently for a one-stop Brexit in which firms are faced with a single set of alterations to their business operations.  This will also help to minimise costs to clients.

As part of assuring maximum continuity PIMFA welcomes Bailey’s emphasis on the need for ongoing consumer protection, both in the UK and the EU, going forward and his recognition of the future need for UK firms to be able to meet consumer interests in the EU. The focus on achieving Memoranda of Understanding (MoUs) with our European counterparts facilitating reciprocity regarding the Temporary Permissions Regime are also important practical proposals which will benefit both UK and other EU retail financial investors. With equivalence as determined by the European Commission being unavailable to retail investors, the benefits of an outcomes-based approach based instead on equivalence of protections should be stressed to enable market access and not require the unnecessary imposition of home country rules on business done elsewhere or from elsewhere.

The significance of making consumer protection work effectively and of maintaining high standards of well-formed regulation targeted to mitigate problems in practice without adding unnecessary costs and burdens cannot be overstated.  This will avoid a race to the bottom and a damaging and unwarranted “bonfire of rules”.  PIMFA strongly support the tailoring by the UK of specific elements in the regulatory system to suit certain unique features of our markets and the ability to adapt regulations and rules quickly and efficiently as markets develop or when regulation does not in practice work as intended. We note Bailey’s references to the Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation in this respect.

Overall, PIMFA opposes any attempt to undermine overall regulatory objectives and standards, and seek to influence both regional and international regulatory policy debates to the highest levels post-Brexit.

John Barrass, PIMFA’s Deputy Chief Executive, said: “PIMFA welcomes regulatory recognition of specific issues in the retail field, along with any initiative which makes it easier for firms to manage change.”

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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 27 years – read more.
  • pimfa.co.uk
  • 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
  • Nigel Ross-Scott – PIMFA Content Manager, nigelrs@pimfa.co.uk
    +44 (0)20 7382 0371