PIMFA Weekly News Bulletin - 11 July 2022

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PIMFA WEEKLY NEWS BULLETIN | 11 July 2022 Dear Nigel,

Welcome to the PIMFA Bulletin; grab a coffee and take 10 minutes to read the latest news impacting you and your firm.

PIMFA publishes proposals for Simplified Advice model

On 6th July, PIMFA published it's new policy paper entitled "Up on the Ladder", outlining its proposals for a simplified advice structure that would benefit a greater number of UK consumers who are currently unable or unwilling to access financial advice. Conversations with our membership have identified current suitability as the biggest barrier for firms to provide stripped down, simple services for new and existing clients. We consider that there is a viable third way between what is permissible under guidance and the provision of advice under full suitability.

PIMFA is urging the Government and the FCA to empower firms to diverge from current suitability requirements where clients present themselves with demonstrably simple needs, allowing them to be advised on a set of products which broadly meet those needs and will produce an outcome which may not be the best possible outcome, but a good enough one relative to doing nothing at all.

The full policy paper can be read here.

PIMFA responds to FCA consumer redress consultation on the British Steel Pension Scheme

PIMFA has called for past members of the British Steel Pensions Scheme (BSPS) to be given the opportunity to be put back in the position they would have found themselves in had they not transferred out. This would mean past members of the BSPS being placed into a scheme which provides a guaranteed income – the relinquishment of which, the FCA’s consultation puts significant emphasis on as a driver for lack of suitability. Given that there is no available scheme for reinstatement, PIMFA has identified the Pension Protection Fund (PPF) as a suitable vehicle to pay out the guaranteed income those past members had given up. This would, we accept, require a legislative change.

Under the proposal, advice firms would still be required to pay redress by topping up an individual’s pension provision to a level which would be invested directly into the PPF to ensure they received a guaranteed income for life, which would be equal to what they would have received, should they have gone into the PPF in the first place.

The full response is available here.

The PIMFA ESG Academy for Wealth Managers is a FREE programme designed specifically to give you the ESG knowledge and confidence you need to take advantage of the rising demand for sustainable investment products, and keep pace with the rapidly changing ESG landscape.

The programme takes place entirely online and you can complete the modules in your own time and at your own pace.

Click here to find out more and register FREE!

Latest PIMFA Press Release

Latest PIMFA Press Coverage

PIMFA calls on Government and

Citywire New Model Adviser: Excl: FCA

Regulator to widen access to advice to

considering six-month extension for

more UK consumers

consumer duty rules

PIMFA calls for British Steel Pension

FT Adviser: There is scope to diverge

scheme members to be compensated

from suitability requirements

through the Pension Protection Fund Money Marketing: British steelworkers PIMFA publishes Diversity & Inclusion

should be compensated through PPF

reports as it extends deadline for entries to this year’s D&I Awards

FT Adviser: Pimfa lays out ‘simplified advice’ regulatory framework

PIMFA welcomes Financial Conduct Authority ban on Claims Management

Pensions Expert: Call for British Steel

‘phoenxing’

compensation to go through PPF

PIMFA Events

PIMFA Compliance Conference 2022 EARLY BIRD TICKETS AVAILABLE UNTIL 15 JULY

Tickets available online and in person 28 September | 08:30-16:30

Hear from leading industry experts on the key issues facing compliance professionals in the investment management and financial advice world.

For more information, and to register please click here.

PIMFA Member-Only Roundtable NAVIGATING DIGITAL TRANSFORMATION IN WEALTH

13 October | 08:30-11:00 This PIMFA Breakfast Roundtable event in partnership with BNY Mellon | Pershing will be discussing the digital transformation journey in wealth management.

For more information, and to register please click here.

View other upcoming PIMFA Events & Learning here

New Chair of the Financial Conduct Authority announced

HM Treasury has announced the appointment of Ashley Alder as the new Chair of the Financial Conduct Authority (FCA).

Ashley, a former lawyer, is currently Chief Executive Officer of the Securities and Futures Commission (SFC) in Hong Kong, a role he has held since 2011. Ashley also chairs the

Board of the International Organization of Securities Commissions (IOSCO) and sits on the Financial Stability Board's Plenary and its Steering Committees.

Ashley is expected to take up his role as FCA Chair in January. He is appointed for a fiveyear term.

FSCS publishes its 2021/22 Annual Report and Class Statements

In its Annual Report and Accounts and Class Statements, published on 7 July 2022, the FSCS outlines the vital work it carried out during the past financial year.

Among the highlights: •

FSCS had its most productive operational performance year to date with approximately132,000 claims decisions being made

•

FSCS’s total compensation costs were £584m

•

For the second year running, FSCS achieved record levels of customer satisfaction by achieving 89 per cent in one month and maintaining an 84 per cent average throughout the year.

The full report can be found here.

HMT updates its Advisory Notice on high risk third countries

On the 4th July, HMT published an updated advisory notice on money laundering and terrorist financing controls in high-risk third countries. The Money Laundering and Terrorist Financing (High-Risk Countries) (Amendment) (No.2) Regulations will come into force on 11 July 2022 and will substitute the list of high-risk third countries specified in Schedule 3ZA with a new list.

You can read the Advisory Notice in full, here.

FCA PS22/8 - Protecting investors in authorised funds following the Russian invasion of Ukraine

Further to CP22/8, PS22/8 confirms rules (effective from 11 July 2022) that will enable UK authorised funds to create new share classes ("side pockets") to hold Russian, Belarussian and Ukraine assets that are subject to financial sanctions or that cannot be valued/traded.

It is hoped that such arrangements will enable the remainder of any affected fund to continue trading as normal and will help to end current fund suspensions and avoid future ones.

Although the decision to use "side pockets" will be at the discretion of Authorised Fund Managers, current indications are that only a very small number of funds are likely to make use of these rules. Even so, firms involved in distributing relevant funds to retail clients and in providing related administrative and custody services - primarily platforms and discretionary fund managers - may need to make changes to systems, procedures and client communications to accommodate the new rules.

The new rules can be found here.

Find Out More About PIMFA ...

Bulletin is just one of the many insights and publications PIMFA produces on the latest industry news and issues - most of which are accessible to PIMFA members only.

CONTACT US If you have a query on becoming a PIMFA member, the work we undertake, or any of the articles in this Bulletin, please contact us.

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