Posted on by Matthew West

19 March 2021

PIMFA welcomes continued relaxation of 10% rule and consultation on permanent change

PIMFA, the trade association for the wealth management, investment services and the investment and financial advice industry, welcomes the announcement today (19 March) from the Financial Conduct Authority (FCA) that it is extending the relaxation of the 10% depreciation notice requirement for firms until the end of 2021 and will consult on permanent change.

At the start of the pandemic last year PIMFA flagged certain concerns, among them the 10% rule, with the FCA and outlined their potential impact on member firms and their clients. Today the FCA has said the current relaxation of the 10% rule, which was introduced after engagement with PIMFA, will stay in place pending a review of whether it remains necessary at all, in light of the fact that we have now left the European Union.

Tim Fassam, Director of Government Relations and Policy at PIMFA, commented: “We are pleased the FCA has decided to extend the relaxation of the 10% rule until the end of 2021 having first done so at PIMFA’s urging at the start of last year’s pandemic. This will bring much needed certainty to many firms in the current economic climate.

“The UK’s departure from the European Union meanwhile gives us, as an industry, and the FCA the chance to fully engage on the regulatory regime in Britain and to discard some rules which firms may consider cumbersome or unnecessary. It is right that the regulator examines whether certain current rules are necessary for a competitive and well-functioning UK wealth management industry.”

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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, 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
Tags:
10% Rule
European Union
Financial Conduct Authority
Tim Fassam