PIMFA comments on the Budget
22nd November 2017
Budget headlines may focus on popular announcements such as the scrapping of stamp duty for first-time homebuyers on properties up to £300,000, or highlight the cut in UK growth forecasts from the Office for Budget Responsibility, but for PIMFA1 the key messages are centred on more open and wider access to asset ownership and financial participation for ordinary consumers.
Commenting on the government’s announcement to provide pension funds with guidance on long term investments, Liz Field, CEO of PIMFA, the leading trade association for the personal investment management and financial advice sector in the UK, said “this is a welcome announcement by the Chancellor and we await guidance by the Pensions Regulator. The increase in participation in private pension saving since the introduction of automatic enrolment has seen the beginnings of a shareholder revolution within the UK.
Millions of savers now have a financial interest in organisations, property and various other asset classes that they previously had no exposure to. We support any moves which provide pension funds with clarity on new and innovative ways to grow their members’ money and believe steps that encourage investment in innovative firms will only help to encourage a sense of mutual ownership and engagement among UK consumers.”
Commenting on the Brexit announcement of another £3bn for Brexit preparations over the next two years, in addition to the £700m already invested, PIMFA emphasised that, while it is important to be prepared for all eventualities, a smooth transition is essential for the maintenance of investment, growth and jobs, and through them the livelihoods and lifestyles of the UK population.
PIMFA members have recently undergone significant, widespread, and disruptive changes to their internal systems and business methods, and have incurred serious costs in doing so, because of the major new legislative and regulatory developments enshrined in the MiFID, PRIIPs and other new legislation coming into force at the beginning of January 2018 and shortly after. It will be vital for their survival to have to undergo at the most one major further alteration as a result of Brexit, so a cliff edge scenario in which the UK departs from the EU without proper transitional arrangements and a timetable for these to morph into a final UK/EU post-membership agreement, however wide-ranging, must be avoided.
“This will require a transition period of at least 2 years, and continuing access to the widest possible pool of skilled labour from all over the world, including the EU, so that there is minimum market disruption to such a vital industry and their retail clients” said PIMFA Deputy CEO and Brexit lead, John Barrass.
Notes for Editors
About PIMFA – the Personal Investment Management & Financial Advice Association
- PIMFA is the UK’s 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.
- We represent 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 was created in June 2017 as the outcome of the merger between the Association of Professional Financial Advisers (APFA) and Wealth Management Association (WMA) – read more.
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