PIMFA raises concerns over proposed extension of FOS award limit
16th October 2018
PIMFA, the leading wealth management and financial advice association, today (16th October) raised concerns over the Financial Conduct Authority’s (FCA) proposal to raise the maximum amount of compensation the Financial Ombudsman Service (FOS) can require a financial services firm to pay out.
The proposed increase will see levels rise from £150,000 to £350,000 and the trade association highlighted concerns about the potential impacts that the rise could have on the competitiveness of the market and the advice gap.
Liz Field, PIMFA CEO said:
“PIMFA are deeply concerned that this proposed move could act as a barrier to entry for smaller firms as this will impact a firm’s ability to obtain Professional Indemnity Insurance (PII) at a viable economic cost.
“This could reduce the number of firms within our profession and further widen the advice gap. We will be responding to the consultation paper and raising our concerns with FCA. Our profession has an essential role to play in helping to build a culture of savings and investments, and this move could severely impact firm’s ability to be able to provide this vital service to clients”
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 27 years – read more.
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