PimfaJun 25 2019

Pimfa calls on advisers to call out bad practice

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Pimfa calls on advisers to call out bad practice

The Personal Investment Management & Financial Advice Association has called on the advice industry to "call out" bad practice tactics in a bid to improve public trust in the sector. 

The calls follow the trade body's warning that the debacle surrounding the suspension of the Woodford Equity Income fund had already undermined trust in the financial advice sector

Speaking at the trade association's annual summer event last week Liz Field, chief executive at Pimfa, said a relationship of trust between advisers and clients was often built over "several years of highs and lows". 

Ms Field said: "We are working to drive the right outcomes to ensure trust in the industry, this is crucial and integral to our overall mission.

"Our firms are helping build the financial futures for clients - and ultimately help contribute to the positive financial and mental wellbeing of families and individuals.

"We must continue to ensure that the industry is seen as a valuable resource for all, and must call out bad practice tactics as it affects the reputation of our profession and ultimately our customers."

The call for action followed a warning from Pimfa that the Woodford saga had created an "erosion of trust" among savers and investment managers and advisers.

Neil Woodford suspended his income fund in the beginning of June for 28 days after a sustained period of heavy outflows.

Following this a storm erupted over what had been going on with the fund and whether anyone was to blame. Both MPs and the regulator waded in but have stopped short of apportioning blame.

Pimfa said actions which undermine good practice served only to "tarnish the reputation of the sector and undermine trust".

The trade body has previously suggested the solution to rebuilding the lost trust did not lie with further regulation, but a better implementation of the existing rules.

Also speaking at the Pimfa annual event last week chairman John Gummer, Lord Deben, said the advice industry had "huge amounts" to offer the nation but only when given the "space and proper direction". 

He said: "We are an innovative industry, and we have been successful because we’re able to effectively solve the problems or our past, present and future, and we must continue to do."


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