PIMFA
15 September 2020
PIMFA welcomes FCA call for evidence on how to improve the consumer investment market
PIMFA, the trade association for the wealth management and financial advice industry, welcomes the Financial Conduct Authority’s (FCA) call for evidence on way to improve the consumer investment market.
Tim Fassam, Director of Government Relations and Policy, commented: “PIMFA welcomes many of the proposals outlined in this call for evidence – in particular many of the arguments made around the current system of compensation which mirror our constructive engagement with the FCA on these matters.
“However, the FCA needs to recognise that every customer who finds themselves in need of the Financial Services Compensation Scheme (FSCS) has had a poor outcome and an incredibly stressful experience; it is best for all if this can be avoided. In our view, there remains inadequate supervision of advice firms and this has led to significant market distortion whereby firms that represent the most harm are allowed to default their liabilities onto the FSCS and make prudent firms bear the cost.
“We continue to believe that unless the supervisory regime is fit for purpose, compensation costs will continue to rise regardless of their configuration. It is hard to see how, under the current system, the burden of these compensation costs will not continue to fall on prudent advice firms.”
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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 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 collaborates with product and service providers to offer member firms a suite of membership enhancements, through its PIMFA Plus partnerships. Find our more here.
· 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-member or contact us directly at membership@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
