16 July 2020
PIMFA supports TheCityUK report on recapitalising businesses post-Coivd-19
PIMFA, the trade association for the wealth management and financial advice industry, made the following comment on TheCityUK report on recapitalising businesses post Covid-19 today (16 July).
Tim Fassam, Director of Policy and Government Relations at PIMFA, said:
“We have said from the outset of the Covid-19 pandemic that private investment will play a crucial role in the rebuilding of the UK economy. For firms raising new share capital, modern technology means there is no reason not to allow them to participate. For smaller firms, the recommendations allow for a sensible debate about the right way to involve investors.
“But for this to work investors need greater certainty and clarity of information to commit to playing their part in that economic recovery. If too many businesses are struggling with unsustainable levels of debt the uncertainty will present savers and investors with an unacceptable level of uncertainty and risk that would almost certainly delay the economic recovery and could mean it takes years for the economy to return to last year’s level of output. The Office for Budgetary Responsibility (OBR) has already warned about the dangers of a protracted return to economic growth and the damage that high levels of unemployment could inflict.
“The recommendations put forward by TheCityUK, such as a UK Recovery Corporation to attract private capital to support Small and Medium Enterprise (SME) growth directly and the converting of short-term debt into longer term financial obligations to HMRC, would provide greater certainty to savers and investors, potentially save millions of jobs and speed the economic recovery. We were pleased to be a contributor to the report and these recommendations have the full support of PIMFA. We look forward to engaging with the industry andGovernment on these proposals in a constructive manner in the near future.”
Notes for Editors
About PIMFA – the Personal Investment Management & Financial Advice Association
- PIMFA is the trade association for firms that provide investment management and financial advice to everyone from individuals and families to charities, pension funds, trusts and companies.
- The sector currently looks after £1.5 trillion in private savings and investments and employs over 55,000 people.
- PIMFA represents both full and associate member firms. Full membersprovide 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 membersprovide 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 since 1991 – read more.
- Further information can be found at www.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-memberor contact us directly at firstname.lastname@example.org
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