PIMFA welcomes extension of the Consumer Duty implementation timeline

27 July 2022

PIMFA welcomes extension of the Consumer Duty implementation timeline

PIMFA, the trade association for the wealth management, investment services and the investment and financial advice industry, has welcomed the Financial Conduct Authority’s (FCA) decision today (27 July 2022) to agree to our recommendation to extend the period for firms to implement its new Consumer Duty for closed books by an additional 12 months. Under the FCA’s revised timeline firms will have until 31 July 2023 to implement the Duty for new and existing policies – an extension of three months – and a further 12 months from then  – until 31 July 2024 – to implement the Duty for closed books.

Responding to the FCA’s policy statement, Simon Harrington, Head of Public Affairs at PIMFA, commented:

“The Consumer Duty has the potential to be a transformative piece of regulation which will, we hope, substantially improve how firms serve consumers and work towards ensuring they receive superior financial outcomes.

“But for that to be the case, as we have previously argued, firms need more time to implement the new regulations. We welcome the fact that the FCA has now recognised that such a transformative piece of regulation does indeed require additional time for firms to implement new systems and processes to comply with it.

“The decision to extend the implementation of the Consumer Duty to from 9 to 12 months for new and existing policies, and then another 12 months for closed books, is broadly in keeping with our recommendations to the FCA. We are pleased the Regulator has listened to the industry and demonstrated a willingness to work with us to ensure this new regulation works well from the very beginning. Our focus now will be on supporting firms to implement the Duty.”

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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 wealth management, investment services and the investment and financial 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 and 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 / +44 (0) 7843 903258

Sheena Gillett, PIMFA Communications & PR Director – sheenag@pimfa.co.uk, +44 (0)20 7011 9869 / +44 (0)7979 493225