Press Release

17 June 2020

PIMFA welcomes FCA Chairman Charles Randell’s comments regarding the FSCS Levy

PIMFA, the trade association for the wealth management and financial advice industry, welcomes the comments from the Financial Conduct Authority’s (FCA) Chairman, Charles Randell’s regarding the Financial Services Compensation Scheme (FSCS) Levy and other matters concerning our industry.

As is well known, PIMFA has long been in dialogue with both the FCA and FSCS on the matter of the levy and has already made further representations to the regulator since the onset of the COVID-19 pandemic. Following this dialogue the FCA sent the recent “Dear CEO” letter to firms outlining its expectations during the pandemic, while also providing the regulatory forbearance PIMFA called for.

It is also encouraging to see the Chairman of the FCA acknowledge the FSCS Levy is already at an unacceptable level placing an unfair financial burden on firms that serve their customers well and give good advice. PIMFA has for some time asked serious questions about the sustainability of the FSCS Levy, while also calling for reform of regulation and supervision. PIMFA have also been working with the FCA to help consumers protect themselves from scams through its Scam Safecampaign and will be working with other partners to increase this work over the coming months.

Liz Field, Chief Executive of PIMFA, commented:“That the FCA Chairman has acknowledged the need to redesign the current system so that it better protects ordinary retail investors from investments which are unsuitable for them, and ensures that firms which market unsuitable investments don’t pass the bill for their misconduct on to well-run firms is very welcome news.

“All well-run firms want to protect consumers from poor advice or outright scams and the FSCS Levy has been a source of understandable resentment for those firms for a significant period of time. The implicit warning that the Levy is likely to increase as a result of the current COVID-19 pandemic will however be a source of anxiety for many firms.

“PIMFA has already called for more engagement with the regulator and for better supervision for firms that need help and I would ask the FCA continues to work so a system that protects consumers but doesn’t punish well-run firms for the misconduct of others can be created.”

 

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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 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