PIMFA welcomes moves towards greater transparency and control of cost for Claims Management Companies

27 April 2021

PIMFA welcomes moves towards greater transparency and control of cost for Claims Management Companies

PIMFA, the trade association for wealth management, investment services and the investment and financial advice industry, has welcomed proposals from the Financial Conduct Authority (FCA) to create greater transparency and control costs for consumers that deal with Claims Management Companies (CMC).

In its response to the FCA consultation on restricting CMC charges PIMFA notes that in the event of a consumer receiving a bad outcome, it is right they should be adequately compensated. But the current avenues available to consumers to seek redress are dominated by companies which often offer poor transparency about the nature of their services, while not providing value for money in terms of the fees they charge. To that end the Regulator’s proposals welcomed and are strongly supported by PIMFA.

Simon Harrington, Senior Policy Adviser – Public Policy at PIMFA, commented: “We accept that in some cases the process of administering these claims can be lengthy, while the administrative demands put on consumers can be burdensome. It is therefore right that consumers are provided with the opportunity to, in effect, outsource a service that they could reasonably do themselves.

“However, CMCs should be more transparent about the role they play in the claims process, as well as the likely involvement required on behalf of the claimant. More broadly, the costs which are currently levied on consumers are far too high and do not representative of value for money at all. We support the Regulator’s proposals which are right and proportionate.”

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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