Disputes and Investigations Partners Lorna Emson and Laura Bridgewater have contributed to new guidance for wealth managers and financial advisers on the information sharing provisions introduced by the Economic Crime and Corporate Transparency Act 2023 (ECCTA) in collaboration with PIMFA, the trade association for wealth managers and financial advisers.
The ECCTA provisions, which took effect on 15 January 2024, establish legal gateways through which AML regulated firms can share relevant information with one another for the purpose of preventing, detecting or investigating economic crime, while benefiting from statutory protections around confidentiality and civil liability.
The guidance published is designed to equip firms with the knowledge and practical tools they need to engage with the new regime confidently and responsibly.
The guide provides an overview of the legal framework for direct and indirect information sharing under ECCTA including guidance on navigating data protection, confidentiality and anti-money laundering considerations, step-by-step processes for sharing and requesting information, and template forms and case studies illustrating how the gateways can be used in real-world scenarios.
Disputes and Investigations Partner Lorna Emson commented: “There is potential for those engaged in financial crime to exploit the gaps between regulated firms, aware that no single institution holds the complete picture. The ECCTA gateways seek to address those gaps and facilitate collaboration, with statutory protections for firms sharing information in good faith.”
Disputes and Investigations Partner Laura Bridgewater added: “The ECCTA information sharing provisions are a significant development in the fight against economic crime, but their effectiveness depends on firms knowing how to use them. This guidance provides wealth managers and financial advisers with a clear framework for sharing information lawfully and securely.”
Alex Roberts, Head of Regulatory Policy and Compliance at PIMFA, said: “Wealth managers and financial advisers are often closer to their clients than banks or other intermediaries, putting them in a unique position to spot unusual activity or emerging risks. But tackling economic crime effectively requires strong controls within individual firms, alongside timely and confident information sharing across the financial system.
“The ECCTA gateways provide a clear legal mechanism for that collaboration, with important protections for firms that share in good faith. This guidance is designed to give our members the practical tools and confidence to use those powers in a way that is responsible, proportionate and effective.”
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About PIMFA
PIMFA (the Personal Investment Management & Financial Advice Association) is the trade association for firms that provide wealth management, investment services, and financial advice and planning 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 wealth management, financial advice and planning, as well as investment and execution services. They assist everyone from individuals and families to charities, pension funds, 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 help create a UK culture of thriving financial health through constructive advocacy, fostering connections, and providing practical support.
PIMFA was established in 2017 as a result of the merger between the Association of Professional Financial Advisers (APFA) and the Wealth Management Association (WMA), which has a history as a trade association dating back to 1991.
Further information can be found at www.pimfa.co.uk.