PIMFA welcomes FCA business plan proposals to prevent harm arising in the market faster and more effectively

15 July 2021

PIMFA welcomes FCA business plan proposals to prevent harm arising in the market faster and more effectively

PIMFA, the trade association for wealth management, investment services and the investment and financial advice industry, welcomes proposals from the Financial Conduct Authority (FCA) in its business plan published today (15 July 2021), particularly the proposals that would see the FCA acting more decisively to prevent market harm arising.

Tim Fassam, Director of Government Relations and Policy at PIMFA, commented:

“We welcome the Financial Conduct Authority’s (FCA) announcement this morning in its Business Plan that it intends to identify and prevent harm arising in the market faster and more effectively.

“PIMFA has regularly raised concerns about the FCA’s standard of supervision in the past which, we consider, has contributed to firms failing, consumer detriment and ever rising and unsustainable Financial Services Compensation Scheme (FSCS) bills for the vast majority of well-run firms in the market.

“We set out a number of recommendations in our recent paper on FSCS levy reform and it is encouraging that these have been largely adopted in the FCA’s plans to improve its processes and oversight of firms published today.

“However, we are clear that this cannot simply involve the provision of new rules and a further expansion of the Handbook. The FCA needs to use the tools already available to them better. To this end, we look forward to the fruits of its data strategy work being implemented to ensure firms are providing data with a purpose rather than just because it is an obligation.

“We will continue to work closely with the Regulator to ensure that we can all work towards a retail investment market which consumers derive confidence from, and our member firms can thrive in”.

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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)7979 493225