PIMFA welcomes FCA action to prevent harm in the consumer investment market

18 October 2022

PIMFA welcomes FCA action to prevent harm in the consumer investment market

PIMFA, the trade association for wealth management, investment services and the investment and financial advice industry, has welcomed the news that the Financial Conduct Authority (FCA) has placed restrictions on twice as many firms in the investment market compared with last year, as part of its strategy designed to prevent harm in the consumer investment market.

Simon Harrington, Head of Public Affairs at PIMFA, commented: “PIMFA remains supportive of the aims and objectives of the Financial Conduct Authority’s (FCA) Consumer Investment Strategy. We are particularly happy to see the FCA taking a more proactive approach against disreputable firms seeking to lifeboat and phoenix, which would otherwise further inflate the costs of the Financial Services Compensation Scheme for good firms – an issue we have repeatedly raised and campaigned on.

“In addition to keeping bad actors out of the market,  the FCA must additionally direct its efforts towards making the authorisation process more efficient and clearing its authorisation backlog over the next reporting period.

“Firms in the advice and wealth sector are still reporting a significant wait for the approval of senior manager appointments. This is having a detrimental impact on the ability of well governed, high-quality wealth and advice firms to serve the needs of UK savers.”

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NOTES TO 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 /