IA comments on the Edinburgh Reforms

Commenting on the Edinburgh Reforms, Chris Cummings, Chief Executive of the Investment Association:

“The Investment Association shares the Government’s vision for an open, sustainable and internationally competitive financial services industry that serves the interests of investors and the wider economy.

Today’s Edinburgh Reforms are a very welcome acknowledgment of the need for reform to boost the UK’s place as a leading global financial services hub, and importantly, recognises the place of investment management at its heart. We will work with Government to ensure these necessary and positive reforms bolster the UK’s global attractiveness for investment management so our industry can play its part as an engine of growth and financial resilience.

The Financial Services and Markets Bill and these measures rightfully emphasize the need for the UK to remain competitive and innovative. It is essential that the FCA and PRA hone their focus on competitiveness and economic growth if the UK is to retain its position as the preeminent international financial centre and to continue to attract high levels of investment.

For our industry, there are a number of measures that we are particularly pleased to see, including the Government’s support for the Long-Term Asset Fund (LTAF) initiative, which will help to open access to private markets while providing greater capital for long-term investment.

A commitment to a Green Strategy Plan in 2023 is crucial, and we look forward to supporting urgent work on how we can transition to a more sustainable economy, so that we can work collaboratively to achieve the long-term net-zero goals. We also support the focus on regulation of ESG data to ensure there are transparent, robust and quality ESG data and methodologies to deliver clear and consistent sustainable and responsible investments to clients.

The repeal of PRIIPs and plans to look at retail disclosure with a fresh lens is also welcome to ensure consumers receive information that will genuinely help them to make informed investment decisions. Combined with reforms to the advice and guidance regimes, this could help millions more UK citizens invest effectively and productively. The range of measures to improve the effectiveness and efficiency of wholesale markets, such as a review of MIFIDII and the introduction of a consolidated tape, will also be key.

We look forward to seeing rapid progress in these vital areas, and we look forward to working with regulators and the government into the New Year.”

Notes to Editors:

For further information, please contact:

Arianna Schardt, Communications Executive: [email protected]

T: +44 (0)20 7269 4625

Helen Ayres, Senior Communications Manager: [email protected]

T: +44 (0)20 7269 4620

IA Press Office: [email protected]

About the Investment Association (IA):

The IA champions UK investment management, supporting British savers, investors and businesses. Our 250 members manage £10 trillion of assets and the investment management industry supports 122,000 jobs across the UK.

Our mission is to make investment better. Better for clients, so they achieve their financial goals. Better for companies, so they get the capital they need to grow. And better for the economy, so everyone prospers. 

Our purpose is to ensure investment managers are in the best possible position to:

  • Build people’s resilience to financial adversity
  • Help people achieve their financial aspirations
  • Enable people to maintain a decent standard of living as they grow older
  • Contribute to economic growth through the efficient allocation of capital.
  • The money our members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs

The UK is the second largest investment management centre in the world, after the US and manages 37% of all assets managed in Europe.