PIMFA welcomes continued relaxation of 10 per cent rule and consultation on permanent change

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PIMFA, the trade association for the wealth management, investment services and the investment and financial advice industry, has welcomed the announcement that the Financial Conduct Authority (FCA) is extending the relaxation of the 10 per cent depreciation notice requirement for firms until the end of 2021 and will consult on permanent change. 

At the start of the pandemic last year PIMFA flagged certain concerns, among them the 10 per cent rule, with the FCA and outlined their potential impact on member firms and their clients. Today the FCA has said the current relaxation of the 10 per cent rule, which was introduced after engagement with PIMFA, will stay in place pending a review of whether it remains necessary at all, in light of the fact that the UK has now left the European Union. 

Tim Fassam, Director of Government Relations and Policy at PIMFA, comments: “We are pleased the FCA has decided to extend the relaxation of the 10 per cent rule until the end of 2021 having first done so at PIMFA’s urging at the start of last year’s pandemic. This will bring much needed certainty to many firms in the current economic climate.  

“The UK’s departure from the European Union meanwhile gives us, as an industry, and the FCA the chance to fully engage on the regulatory regime in Britain and to discard some rules which firms may consider cumbersome or unnecessary. It is right that the regulator examines whether certain current rules are necessary for a competitive and well-functioning UK wealth management industry.”