Bringing you live news and features since 2006 

Brexit flag

PIMFA calls on Government to grasp Post-Brexit opportunity to improve financial services regulation


PIMFA, the trade association for wealth management, investment services and the investment and financial advice industry, is calling on the Government to take the opportunity offered by the completion of Brexit to reshape the regulatory environment for financial services in the UK.

In its response to HM Treasury’s Financial Services Future Regulation Framework Review, PIMFA highlights the fact that there is now a clear opportunity to create a regulatory architecture that improves supervision and enforcement and leads to better outcomes for consumers.

PIMFA welcomes many of the changes proposed by HM Treasury with respect to the regulatory framework and the accountability mechanisms to which regulators are subject. However, PIMFA has also made a wide-ranging set of recommendations that it believes would lead to an environment in which regulators can be more efficient, agile and forward-thinking and in which financial services firms can continue to thrive.

In particular PIMFA is calling for:

• Replacing the Financial Conduct Authority’s (FCA) consumer protection objective with one that focuses on achieving good outcomes for consumers across the whole of their experience of financial services.

• Statutory mechanisms that enable HM Treasury to order a review of the regulator’s operation, not just in cases of one-off failure, but where it appears the regulator has consistently failed to meet some part of its remit.

• A properly resourced sub-committee of the Treasury Select Committee devoted to scrutinising the work of the regulators and how they use their powers.

• The FCA to focus on engaging more with industry so that it really understands firms’ businesses, rather than proceeding directly to regulatory action.

• A new statutory objective that requires regulators to take account of the global competitive position of the UK financial services industry.

• Statutory panels to be fully independent of the FCA so as to guard against regulatory capture and encourage greater industry engagement.

Tim Fassam, Director of Government Relations and Policy at PIMFA, sys: “PIMFA and its members understand that the UK needs a strong regulatory system to protect its status as a leading centre for wealth management and financial advice.

“However, Brexit provides an opportunity to reshape our current regulatory environment to ensure that it better reflects the needs of UK consumers and firms. We want to see a regulator that is effective and uses consistent mechanisms for supervising regulated markets and firms, while also ensuring that bad actors are removed from the industry.

“Changing the regulator’s focus to good outcomes would ensure we avoid the assumption that a customer who has not taken action is protected. We hope this would lead to the industry and regulator working together to increase the take up of advice as well as boosting saving and investment.”

Latest News

Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

Kristen Mierzwa, FTSE Russell
Index Investments Group (IIG), a division within index provider FTSE Russell, has extended its range of indices through two new...
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by