PIMFA welcomes reduction in FSCS levy but continues to call for fundamental reform

13 May 2021

PIMFA welcomes reduction in FSCS levy but continues to call for fundamental reform

PIMFA, the trade association for wealth management, investment services and the investment and financial advice industry, welcomes the reduction in the Financial Services Compensation Scheme (FSCS) levy forecast for 2021/22 but continues to call for fundamental reform.

Tim Fassam, Director of Government Relations and Policy at PIMFA comments: “Clearly a reduction in the original levy forecast is good news for firms. However, the number outlined by the Financial Services Compensation Scheme (FSCS) today is still too high, while predictions that much of the pain resulting from failed Self Invested Personal Pensions will be felt next year is of little comfort to our firms.

“We have set out a roadmap towards lower levies in the long term and are urging Government and the Regulator to work with us and the rest of industry to create a sustainable solution, which ensures that future levy costs, individual failures and ultimately poor consumer outcomes are consigned to history.”

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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