Three in five wealth firms not planning to offer Targeted Support services

Over three in five (63 per cent) wealth management and financial advice firms are not planning to offer Targeted Support services, with only a small number planning to offer them from April, new research from the Personal Investment Management & Financial Advice Association (PIMFA) has indicated.

The trade body suggested the sector taking a “measured and evolving approach” to new regulatory initiatives, while reporting early signs of easing regulatory pressure.

PIMFA published the research in its latest Regulatory Insights Tracker, with data collected in February and March from 56 member firms, including wealth managers, financial advisers and financial planners.

The association said its findings showed tentative signs that the regulatory burden in the wealth management is easing. While over three quarters (78 per cent) of firms reported that regulatory change is diverting time and resources away from other priorities to a moderate or large extent, this latest figure was down from 85 per cent six months ago.

Director of government relations and policy at PIMFA, David Ostojitsch, commented: “It is particularly pleasing to see that, for many, regulatory change is beginning to consume fewer resources, which recognises the work of the regulator and other bodies in reducing this burden.

“That said, the overall survey findings still show that more can be done to support firms as they navigate regulatory change and drive UK growth.”

Two in five firms (40 per cent) agreed that Targeted Support will play a significant role in helping retail investors make better financial decisions, with only four per cent disagreeing and the majority (57 per cent) reserving judgment.

Similarly, PIMFA reported that 31 per cent of firms agree that the regime will set savers and investors on a pathway towards holistic financial advice, with just 18 per cent disagreeing, and 52 per cent offering no strong view – which the trade body suggested was further evidence of a “wait and see” approach.

Ostojitsch added: “The findings on Targeted Support reflect our engagement with firms and the regulator, and, while uptake may be limited in our sector, there is clear support for measures that help close the advice gap and improve consumer outcomes.”

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