Posted on by Matthew West

1 July 2021

PIMFA welcomes reduction in proposed FCA fees 

PIMFA, the trade association for wealth management, investment services and the investment and financial advice industry, welcomes the policy announcement today by the Financial Conduct Authority (FCA), which proposes much lower annual fees for Principal firms than had previously been proposed, collectively saving the industry £2.8m.

Simon Harrington, senior policy adviser at PIMFA, comments: “We welcome the FCA’s decision to introduce a much lower fee for Principals to the one that it proposed in its initial consultation and which PIMFA strongly disagreed with.

“But our concerns around the provenance of the flat fee have not been assuaged. It is still unclear what the FCA hopes to achieve through their undefined market study, and the largest firms with superior controls will still be penalised.

“However, the FCA have clearly listened to our concerns and we look forward to working with them closely on ensuring that they can gain comfort from the Appointed Representative model, which works well for the vast majority of firms and clients”

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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)7979 493225

Tags:
FCA
Fees
Regulation
Simon Harrington