21 December 2021

PIMFA welcomes extension of 10% depreciation notification rule flexibility but calls for longer term reform

PIMFA, the trade association for wealth management, investment services and the investment and financial advice industry, has welcomed the latest announcement from the FCA that it is extending existing flexibility around the 10% depreciation notification rule for a further 12 months. But it continues to call on the Regulator and Treasury to bring about reforms that better reflect the UK financial services industry.

Tim Fassam, Director of Government Policy and Relations at PIMFA commented:

“The announcement today from the FCA that it is extending the flexibility around the 10% depreciation notification rule for a further 12 months – first introduced in the wake of the Covid pandemic last year at the urging of PIMFA – is a welcome and sensible step given the impact the Omicron variant, and subsequent uncertainty it has caused, has had on markets in recent days.

“However, we have always been of the view that the 10% depreciation rule needs further reform in the longer term. This was always a rule that had more relevance for European Union financial markets than it did for the UK and our departure from the EU presents our industry, and the FCA with an opportunity to enact reforms that better fit our own domestic markets.

“We will continue to lobby the FCA and Treasury for changes to the UK’s domestic regulatory regime that better reflect the way our market operates.”

 <ENDS>

About PIMFA – the Personal Investment Management & Financial Advice Association

  • PIMFA is the trade association for firms that provide investment management, investment services and 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, & 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 / +44 (0)7979 493225