PIMFA welcomes FCA proposals to enhance consumer protections but warns against unintended consequences

PIMFA, the trade association for wealth management, investment services and the investment and financial advice industry, has given a cautious welcome to the Financial Conduct Authority's proposals to enhance consumer protections in the consumer investment market; yet it warns against unintended consequences.

Tim Fassam, Director of Government Relations and Policy at PIMFA, comments: "It is vital that consumers are able to transact in the retail investment market with confidence. To that end we agree with the Financial Conduct Authority (FCA) that ensuring a high level of protection is a key part of ensuring consumer confidence.

"We will be reading the proposals for a new Consumer Duty carefully and agree with the FCA that in many cases firms – especially those within the advice and wealth sector – are already operating within their expectations.

"We look forward to working closely with the Regulator on these proposals but would urge caution against any unintended consequences which may emerge, specifically across the Execution Only Market which has proved to be such an effective tool in allowing retail consumers to transact and participate in a thriving Consumer Investment Market."