Your Industry 

Pimfa on what advisers must focus on in 2018

Pimfa on what advisers must focus on in 2018

The financial advice trade body has said in 2018 advisers need to focus on the structural challenges facing the industry rather than Britain's departure from the European Union.

Liz Field, chief executive of the Personal Investment Management and Financial Advice Association, said while Brexit "looms large", there were other factors which could shape the sector for "many years to come" that advisers must concentrate on.

She said: "Currently, there is every indication of a lack of trust in and understanding of the financial services sector; a lack of supply of advisers or guidance to help individuals; regulation often acting as a block to filling the advice gap, along with issues such as pensions freedoms, inter-generational wealth, attitudes to risk, an aging population, populism and government policy.

"All these, if aggregated and then left unaddressed, will become an impenetrable barrier to a successful savings and investment strategy and almost certainly harm the whole sector accordingly."

Ms Field said digital technology was "transforming the nature of the industry" but she warned regulation may not be able to keep up with these changes and could become quickly outdated.

She said: "The regulator and government need current business know how on this and other transformations.

"Increasingly, they are asking for collective messages to help them navigate the sector as the Brexit vote has further squeezed government and regulatory resources and it is here that trade associations such as Pimfa can provide invaluable help as they have the capability to engage individually with firms and deliver a coherent message leading to solid recommendations for future action."

Ms Field said there would be a "veritable landslide" of new regulation coming into effect next year, including Mifid II, Priips, the general data protection regulation and the senior managers regime.

She said: "This, to Pimfa, is 'business as usual' – the nitty gritty of our existence. We have been involved all the way through the various processes inherent in the construction and evolution of these regulations, and still are."

She said Pimfa had made position papers, analysis and 19 guides on Mifid II available to its members.