PIMFA REACTS TO GENERAL ELECTION RESULT: LET’S WORK TOGETHER TO BUILD A CULTURE OF SAVING AND INVESTMENT
Friday 13th December 2019
Reacting to the election of a majority Conservative government, PIMFA, the UK’s trade body for the personal investment services and financial advice profession has urged the new government to show that it has designs beyond Brexit.
PIMFA is today asking for policy makers to work together in order to build a culture of saving and investment across the UK for the long term and to:
Put in place a framework of smarter regulation to enable an increase in trust in the sector
Smarter, targeted regulation is absolutely necessary to stamp out the poor practice and behaviour that leads to customer detriment, erosion in trust, and substantial increase in costs for well-behaved firms in this market. These costs are not just the cost of compliance with regulation but the costs of the regulatory bills including the FSCS and PII. Not only is the financial cost of firms too high but the unquantifiable cost is the erosion of trust amongst consumers who need the services of our member firms. These costs are not sustainable to provide choice for clients and will price firms out of the market.
Commit to a Financial Capability and Engagement Framework for the UK’s savers
Financial education is contained within the PSHE module within schools, however there is a lack of coordination at national level about what this should contain and to what level. This needs to change if individuals are to be informed about their financial needs throughout their life and how to plan their financial future, at all ages but particularly at a younger age so they start saving early.
Work with all employers to roll out financial check-ups undertaken by a regulated financial adviser
Engagement is a desirable end in financial policy making but only if it is achieved with the right level of context and understanding of individual options. As a result, we believe that organisations should provide ‘financial MOTs’ at age 30, 40, 50 and 60 undertaken by a regulated financial adviser. The two elements of auto-enrolment/workplace pensions and a financial MOT will encourage greater savings and investments, thus enabling individuals to provide more for their own retirement and relying less on the state at retirement age.
Commenting on the election result, Liz Field, Chief Executive of PIMFA said:
‘We are committed to building a culture of saving and investment across the UK and this starts with ensuring that policy makers are able to create an environment where ordinary retail savers can thrive. We look forward to working with the new government in moving towards this goal.’
‘As representatives of a community of wealth creators in the UK, we look forward to engaging constructively with the next government whatever its colour or composition. When Parliament returns we will do our utmost to ensure that this community is at the heart of any plans which go towards building a culture of saving and investment.’
PIMFA will be holding a Parliament Day on 23 January and is encouraging its members to participate in raising the awareness of this industry.
Notes for Editors:
About PIMFA – the Personal Investment Management & Financial Advice Association
- PIMFA is the leading trade association for firms that provide investment management and financial advice to everyone from individuals and families to charities, pension funds, trusts and companies.
- 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.
- PIMFAleads 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 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
- To become a member of PIMFA for access to training, benefits and discounts, please visit https://www.pimfa.co.uk/become-a-member or contact us directly at [email protected]
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