PIMFA responds to Evaluation of the Retail Distribution Review and the Financial Advice Market Review Call for Input
Tuesday 4th May 2019
PIMFA, the trade association for investment managers and financial advisers, submitted their response to the Financial Conduct Authority (FCA)’s Call for Input for the evaluation of the Retail Distribution Review (RDR) and the Financial Advice Market Review (FADR) today (Tuesday 4th June 2019).
The response – which was drafted with the consultation and feedback from the PIMFA Regulatory Board Sub-Committee – stated that the regulator must do more to ensure financial service offerings are keeping up with ever-shifting consumer needs, technological advancements and social norms. The document also highlights the benefits and better financial outcomes consumers receive when accessing financial advice – to aid in their mental and financial wellbeing – as well as the need for the regulator to be aware of its impact on firms and their clients, the importance of protecting consumers, the danger of excluding people from access to financial advice and for the FSCS levy to be reviewed.
In the document, Simon Harrington, Senior Policy Adviser at PIMFA states:
“There is a clear and obvious benefit in the use of financial advice. People who access it receive better outcomes than those who do not. It is, therefore, a source of some concern that such a small proportion of the UK population – including a number of whom who could reasonably benefit from financial advice – do not access it. The role of financial advice will become increasingly critical over the coming years. In comparison with older generations, people are now accumulating less liquid wealth, property, and are not saving an adequate amount for their retirements. As we live longer and spend more time out of work, the role of financial planning and the management of what wealth we do have will become increasingly important.
“The single biggest contributor to the advice gap currently is the cost of advice. Whilst the FCA recognises and defines the cost of regulation as the ‘cost of doing businesses well’ it also needs to recognise the unintended consequences of the regulatory obligations that it places upon firms. No single process exists which any firm can undertake in order to streamline their regulatory obligations and as a result, regulatory costs, as well as the cost of compliance, continues to rise. If the regulator is serious about closing the advice gap, making advice more affordable and encouraging more people into this market, it needs to also consider what role it can play in overseeing a regulatory landscape which encourages this.”
You can read the full Consultation Response here.
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.
- 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 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 going back for 28 years – 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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