PIMFA
17 May 2021
PIMFA welcomes FCA plans to stop Claims Management Companies from ‘Phoenixing’
PIMFA, the trade association for wealth management, investment services and the investment and financial advice industry, welcomes proposals from the Financial Conduct Authority (FCA) that would ban claims management companies from managing Financial Services Compensation Scheme (FSCS) claims where they have a relevant connection to the claim; a practice known as ‘phoenixing’ .
PIMFA has called for the practice of phoenixing to be banned for some time, not least in our policy paper published late last year.
Simon Harrington, Senior Policy Adviser at PIMFA, comments: “This is an extremely welcome intervention from the FCA. As we set out in our paper on FSCS reform last year, it is of the utmost importance that the ways in which firms are able to transfer risk onto the FSCS and exploit for their own potential gain should be reviewed.
“This consultation and, we hope, the forthcoming policy statement, is a significant step in addressing this market distortion. While it is step in a much longer journey towards lower levies, it is still extremely welcome and a credit to the FCA that they have listened.”
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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)20 7011 9869 / +44 (0)7979 493225
