Pimfa has argued there should be “more focus” from government on the role that retail investors will play in delivering investment and growth.
Pimfa has set out its five-year agenda for government, ‘Creating a UK Culture of Thriving Financial Health’, which it said builds on and supports the policy priorities set out by Labour as it seeks to create wealth within the UK and deliver economic growth.
Pimfa said, while there is “significant scope” to drive investment and growth with the financial services sector, more attention should be given to retail investors and how they will deliver these outcomes.
The trade body argued this can be done by equipping retail investors with the tools and incentives necessary to save and invest.
Pimfa chief executive, Liz Field, said that the start of a new Parliament earmarks a “natural reset point” for industries to consider how they align with government policy and identify where they can work with the government to turn policy ambitions into positive outcomes.
“As this government will look to utilise the financial services sector to drive growth, investment and wealth, I believe that there is significant scope at this crucial early stage for the government to look across the full spectrum of the financial services sector,” she added.
“This means looking to properly utilise the retail investment market, in addition to its traditional focus on capital provided by larger institutions.
“The wealth management and financial planning industry provides access for UK individuals to take a real stake in the economy through their investments as well as safeguard their own financial health.”
Culture of prosperity
In focusing on retail investors, Pimfa believes the industry will create a culture of “thriving” financial health and promote long-term investments that benefit not only individuals but also the broader UK economy.
This approach will, in turn, drive growth in productive assets and create a robust foundation for sustained economic prosperity.
To achieve this, Pimfa believes the government and regulators should focus on three overarching aims including giving consumers the tools and incentives to save and invest, maintaining and growing the UK for investors, and providing regulatory and legislative clarity.
Field added that the principle of ownership should be a “key consideration” for the government as it returns to its missions of wealth creation and growth.
“In setting out our agenda for government today, we aim to show elements of these government missions can be delivered through harnessing a combination of change, and in some cases, stability,” she stated.
“We look forward to working closely with the new government and wish them every success in delivering upon their priorities for this sector across the term of the new Parliament.”
tom.dunstan@ft.com
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