PIMFA welcomes FCA proposals to enhance consumer protections but warns against unintended consequences

14 May 2021 

PIMFA welcomes FCA proposals to enhance consumer protections but warns against unintended consequences

PIMFA, the trade association for wealth management, investment services and the investment and financial advice industry, has given a cautious welcome to the Financial Conduct Authority’s proposals to enhance consumer protections in the consumer investment market. But it warns against unintended consequences.

Tim Fassam, Director of Government Relations and Policy at PIMFA comments: “It is vital that consumers are able to transact in the retail investment market with confidence. To that end we agree with the Financial Conduct Authority (FCA) that ensuring a high level of protection is a key part of ensuring consumer confidence.

“We will be reading the proposals for a new Consumer Duty carefully and agree with the FCA that in many cases firms – especially those within the advice and wealth sector – are already operating within their expectations.

“We look forward to working closely with the Regulator on these proposals but would urge caution against any unintended consequences which may emerge, specifically across the Execution Only Market which has proved to be such an effective tool in allowing retail consumers to transact and participate in a thriving Consumer Investment Market.”

<ENDS>

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