The Financial Services Authority, the UK regulator, must not treat private client stockbrokers and investment managers as harshly as the banks that are at the centre of the market crisis, the Association of Private Client Investment Managers and Stockbrokers has warned Lord Adair Turner, FSA chairman.

APCIMS' chairman David Bennett has warned about his members' fear at excessive regulation of his sector in the aftermath of the credit crunch.

“We welcome Lord Turner’s leadership on tackling banking regulation in the light of the current crisis. This is a necessary initiative which has our full support. We fully agree that banks need to be appropriately regulated to reduce exposure to risk and that needs to happen at global, European and national levels," he said in a statement late last week.

“However I am concerned about unintended regulatory spill over into our sector. We want to ensure that any reforms applying to regulated firms are appropriate and proportionate,” Mr Bennett said. Last month, he welcomed a motion to this end from UK politicians.

“Unlike banks the stock broking and wealth management firms who are members of APCIMS do not act as market makers, liquidity providers, deposits takers or lenders. The activities of our members do not give rise to systemic risk to the financial system and the risks associated with our members’ business models are different from banks," he said.

“Any changes to the regulatory requirements must be focused on the specific risk that is being mitigated and must be appropriate and proportionate – a one size fits all approach treating all regulated firms as banks must be avoided,” said Mr Bennett. 

APCIMS represents over 140 firms all over the UK who deal primarily in stocks and shares on behalf of individuals and institutions. Around £400 billion ($583 billion) of the UK’s wealth is under the management of the body’s members.