Pimfa backs 'significant' regulation report

Pimfa backs 'significant' regulation report

The Personal Investment Management & Financial Advice Association has backed calls for greater scrutiny of financial regulators in the UK. 

The trade body has put its weight behind a report published by the International Regulatory Strategy Group which calls for the creation of a cross-parliamentary committee to hold regulators and HM Treasury to account post-Brexit. 

The report, titled The Architecture for Regulating Finance after Brexit: Phase II, recommends the committee is specifically focused on ensuring regulators and the Treasury report to it on a regular basis to encourage transparent decision making.

The report also calls on the Financial Conduct Authority and Prudential Regulation Authority consider whether their statutory panels could be "strengthened" to provide additional regulatory scrutiny. 

Mark Hoban, chairman of the IRSG, said Brexit created a "timely opportunity" to review the structure of financial regulation with "potential choices for targeted reform". 

Mr Hoban said: "Given the wider scope and powers that regulators could have post-Brexit, there is a need to ensure that the development, implementation and supervision of financial regulation are appropriately scrutinised. 

"We believe that effective regulation underpins the UK’s position as the leading global financial centre as well as the sector’s ability to meet the needs of customers."

As a member of the IRSG, Pimfa contributed to the report and in a statement released today (January 27) said its recommendations would "help eliminate poor rules and encourage smarter supervision".

The trade body said regulators would have to account publicly for "shortcomings leading to raised compensation claims against the industry". 

John Barrass, deputy chief executive at Pimfa, said the report was a "significant" input to the government’s assessment of how UK financial services regulation should run post-Brexit.

He said: "It addresses key domestic concerns as well as aspects of the UK’s future position with the EU and internationally.  

"The report reflects a number of Pimfa views and interests, and will help our own bilateral work with Treasury to ensure that our detailed knowledge of the retail investment, savings, and advice markets, and their regulation, receives full consideration in the government’s forthcoming review." 

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