The wealth management and financial advice industry in the UK is second only to that of the US in terms of assets under management.
We have considerable reach up and down the country to all types of personal investors. Consequently, when we as an industry speak with one voice, the government and regulator cannot ignore what we say.
There are always conversations to be had with policymakers and regulators, and there is always a need to move forward, innovate and to stay focused on building an industry fit for the future. This is why it is vital to support any campaign that helps promote our industry and it is why Pimfa is lending its support to FTAdviser’s Promote Your Profession campaign.
Making our industry fit for the future involves negotiating changes to legislation and regulation with the government and Financial Conduct Authority. But it also means looking at what we can do to make improvements, promote our sector as a great place to work, a force for good and ensure that we are doing all we can to serve our clients in the best way possible.
There are many ways in which our industry speaking with one, unified voice has achieved reform. In the past year alone, we have won meaningful concessions from the FCA on the Financial Services Compensation Scheme levy, including the regulator publicly conceding that the levy is unsustainably high and that a new funding model is required.
We are continuing to work with the FCA on what that might look like and you will have seen our calls for FCA fines to be used to subsidise the levy. This fits with our call for a polluter pays model, at least in the short term, while a longer-term solution is developed in partnership with the industry.
Pimfa, along with 17 other trade associations, charities and consumer groups including UK Finance and Which?, has also won concessions from the government in terms of the online safety bill, which was introduced to the House of Commons in March 2022 and included fraud as a stated priority as a direct result of our campaigning work with our partners.
The online safety bill is continuing its progress through parliament and should become law before the end of the year, helping to protect millions of our clients from fraud.
Last year, the FCA banned companies “phoenixing” into claims management companies, an issue Pimfa has campaigned on for a number of years. The FCA also agreed to lengthen the timeframe for implementation of the consumer duty as a direct result of Pimfa’s campaign work, whilst we have been providing information to firms to help them prepare in advance of the implementation deadline.
