“A reformed prudential regime would provide increased capital/liquidity requirements and improved risk management for PIFs and would address the objectives of this consultation, delivering equivalent outcomes with less complexity, subjectivity, and burden placed on all firms.
“On this basis, any future review and move towards a more comprehensive prudential regime for PIFs would make many of the proposed rules in this consultation unnecessary and redundant,” added Pimfa.
Alexandra Roberts, head of regulatory policy and compliance at Pimfa said the FCA’s proposals do not provide confidence in the effectiveness of how they would be supervised and enforced to achieve its aims.
“In short, the proposals will impose sweeping and extensive obligations on all 5,000 PIFs to address the actions of 75, which appears unnecessary and disproportionate.
“It would be preferable to consider the proposals to increase the prudential alignment of PIFs with Mifid investment firms instead. This action would resolve some of the issues in relation to redress claims falling onto the FSCS and be a more straightforward and logical solution,” she added.
alina.khan@ft.com
