PIMFA welcomes FCA analysis of regulatory perimeter but calls for swifter action to protect consumers

PIMFA, the trade association for the wealth management and financial advice industry, has welcomed the latest analysis of the regulatory perimeter from the FCA but says the regulator must act sooner to avoid consumer harm.

Tim Fassam, Director of Government Relations and Policy at PIMFA, says: “PIMFA has long called for a serious analysis of the regulatory perimeter and issues arising from it, so this report is welcome. However, we cannot allow a situation where PIMFA members, consumer groups and the FCA itself identify issues causing consumer’s harm, but the FCA acts long after this harm has crystallised in the marketplace.

“This report identifies issues but is very light in the way of action - a responsibility which ultimately sits with Government. Increasingly we are seeing products outside of the perimeter falling into the FSCS, despite being excluded and without the firms responsible paying any contribution.

“In the first instance, we strongly believe that the Treasury should reconsider its approach to approving financial promotions to make this a regulated activity, secondly we would advocate a broader Government review of the drivers of firm and product failures and expand the regulatory perimeter against this.”