Pimfa pledges whistleblower support in FCA call to action

Pimfa pledges whistleblower support in FCA call to action
Liz Field, chief executive of PIMFA

The Personal Investment Management & Financial Advice Association has put its weight behind supporting whistleblowers as it renewed its call to reform regulatory costs in the advice sector. 

The trade body said it was committed to promoting the Financial Conduct Authority's whistleblowing system in a bid to provide intelligence to the regulator and "minimise malpractice" in the industry. 

The pledge came as Pimfa updated its manifesto following feedback from its members, with the trade body stating its top priority was now to reform the Financial Services Compensation Scheme levy and tackle the hardened professional indemnity insurance market for advisers. 

The manifesto called on the FCA to ensure its supervisory approach "mitigated against future claims" on the FSCS, an issue which has gained traction this year after another year of levy increases. 

Last month Pimfa warned of an "existential threat" to the advice industry amid "enormous" increases in their professional indemnity premiums. 

A survey of 84 member firms found only 17 per cent of advice bosses had confidence in their ability to secure affordable professional indemnity insurance in the future. 

Liz Field, chief executive of Pimfa, said the trade body's engagement with its members was rising "exponentially" amid increasingly virtual communication, which it said had allowed it to reach more people for input. 

Ms Field said: "When we originally launched the members’ manifesto we said it would be a living, breathing document that would be revisited to take account of strategic developments.

"The fast-paced development of the industry, further accelerated through the Covid-19 pandemic during 2020, has necessitated such a recalibration." 

Earlier this year FSCS boss Caroline Rainbird vowed to work with the advice industry to mitigate the effect of regulatory cost rises on advisers and make the lifeboat work better for consumers.


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