The industry body has previously advocated mutual recognition for UK financial services following Brexit, but the government is instead seeking enhanced equivalence, according to its white paper published in July.
This would not cover retail investment clients, Pimfa deputy chief executive John Barrass said.
Without mutual recognition, clients of Pimfa’s members face less investment choice and an increase in costs, the association said in a statement declaring its opposition to the current regime sought by the government.
No deal
Pimfa stressed the importance of securing a deal with the European Union, stating a no deal Brexit would be disruptive and expensive.
It instead urged the UK government and the European Union to stick with the current three-phrase process, which includes the withdrawal, a transition period and implementation.
The UK is set to exit the EU on 29 March 2019, while the transition period is due to last until 31 December 2020. The 21-month transition period is tight on time but allows firms to plan for the implementation of Brexit well ahead of time.
Barrass is worried the UK focus on the details of the final relationship between the EU and UK threatens the withdrawal and transition agreements, which would become disorderly and highly disruptive to business.
“This will adversely affect employment, growth, costs, tax revenues and investment. There will be little benefit to UK consumers or firms,” Barrass said.
The Financial Conduct Authority has already told regulated firms to prepare for the UK to crash out of the EU.
