SHARE YOUR VIEWS: PIMFA seeks feedback from firms on impact of FSCS costs

We continue to seek member views on the impact of the FSCS on their respective businesses. A link to the survey can be found here

This is the second iteration of PIMFA’s FSCS Survey to firms. Your input is crucial in providing PIMFA with an evidence base to make representations to government and the regulators regarding material impacts to your business. Whilst our previous survey focused on measuring the total cost of funding the FSCS (as well as associated PI costs) the purpose of this survey is to measure the material impact the cost of funding the FSCS has on your business. In doing so, we can make direct representations to HMT to support our campaign to find alternative sources of funding for the FSCS.

Our intention is to collate the responses from this survey into a short public report. As a result, your responses are both valued and any longer-form answers which bring the impact of the levy on your business to light are welcomed. For further information or to provide additional views, please contact Simon Harrington

PIMFA response to DP23/1 Finance for positive sustainable change

PIMFA has responded to the FCA DP 23/1 Finance for positive sustainable change: governance, incentives and competence in regulated firms. Sustainability has become a strategic imperative for many firms in the sector and the focus so far has been mostly on climate related issues.

While we support the regulator’s intention to develop an industry wide dialogue and encourage firms as they develop their arrangements for governance, incentives and competence, we also advise caution regarding the pace and sequencing of regulatory changes as the following considerations matter to the sector:

• Ensure that the necessary building blocks to drive sustainable change are in place before introducing more regulation. Allowing firms time to make the necessary adjustments will increase the effectiveness of measures intended to increase sustainable change.

• Data is vital for enabling ESG and sustainable change, and issues regarding third-party providers and standardisation need to be addressed first. Data availability, quality, cost, transparency, consistency, and comparability need to be addressed as these are some of the most challenging issues for firms.

• Cultural and behavioural factors will be essential for driving more sustainable change. To be successful, this should be driven by firms and the industry rather than trying to legislate a one size fits all approach. It will be critical for the success of small and medium-size firms to have the flexibility to adapt, change and create the cultural journey that suits their circumstances.

PIMFA All Guides Area

Have you seen the PIMFA All Guides Area? This section of the PIMFA website showcases our guides, containing practical guidance and direction on the latest industry changes for our members.

Market Abuse Regulation

PIMFA’s associate member, SIX, have shared some helpful resources on Market Abuse Regulation. Members can access webinars and a thought leadership article on the need for a robust technology framework via links below:

• Market Abuse: Trends and Issues to Watch Out for in 2023 - A Team (ateaminsight.com)

• Market Abuse Regulation: How to Detect and Analyse Abusive Market Transactions - A Team (a-teaminsight.com)

• How Firms in the UK Need a robust Technology Framework to Manage the Challenges of Market Abuse

FCA & Consumer Duty

On 10 May the FCA issued two publications:

FCA Countdown to Consumer Duty: speech by Sheldon Mills

Sheldon Mills advised firms on areas of focus for the FCA, such as fair value assessments and fees and charges, and thanked firms for the efforts made to meet the 31 July deadline.

FCA Review of Fair Value Frameworks

The FCA reviewed 14 firms’ fair value assessment frameworks. The publication does not introduce any new requirements on firms, but sets out some suggested areas of focus, improvement, and examples of good practice.

FCA's GFIN TechSprint on Greenwashing

As a founding member and Chair of the Global Financial Innovation Network (GFIN), the FCA are leading the first ever GFIN Greenwashing TechSprint. They are among 13 international regulators so far taking part.

The virtual TechSprint will be hosted on the FCA Digital Sandbox, and the aim is to provide an environment that will bring together international regulators, firms, and innovators with the goal of developing a tool or solution that could help regulators and the market effectively tackle the risks of greenwashing in financial services.

The FCA are inviting all UK based firms who are interested in participating to apply The application window opened on 17 April 2023 for 4 weeks

To support the application process, the GFIN has provided an information pack for firms interested in participating.

This is a unique opportunity to collaborate at an international level, with the aim of developing a RegTech or SupTech tool that could be used across multiple regulatory jurisdictions.

FSSC: Reskilling Everywhere All At Once report

Last week the Financial Services Skills Commission (FSSC) launched their report ‘Reskilling Everywhere All At Once, Skills for the future of financial services 2023’, in partnership with Lloyd’s Banking Group.

The report highlights the increasing demand for the 13 future skills we have previously identified, including data analytics, cyber security, software development and coaching. The findings show the demand for technology skills continues to grow – 1 in 8 roles in FS is now tech centric – double the proportion compared to the wider economy.

Yet, despite organisations’ increasing their focus on skills forecasting, reskilling and upskilling, demand for these future skills is approximately 20% short of supply, further widening the industry’s existing skills gaps.

HM Treasury publishes Call for Proposals on measuring success in relation to financial regulators’ new secondary objectives

On 9 May 2023, HM Treasury published a Call for Proposals on how to measure success in relation to the financial regulators’ new secondary objectives, which will be introduced under the Financial Services and Markets (FSM) Bill.

The FSM Bill introduces new, secondary objectives for the FCA and the Prudential Regulation Authority (PRA) to facilitate the international competition of the UK economy (in particular the financial services sector) and its growth in the medium to long-term.

HM Treasury’s call for proposals is intended to help determine what additional metrics it is most appropriate for the regulators to publish, in order to ensure that reporting on the new secondary objectives is sufficient to support scrutiny of the regulators’ work in embedding and advancing their new objectives. The call for proposals will close at 11:59 on 4 July 2023

PIMFA are proud to be partnering with the Morningstar Investment Conference London this year

Join us on 4 July, register here

The discounted early-bird price to attend is £19, thereafter £99. Register now to secure your place and save £80 if you register before 31st May 2023!

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EVENTS & LEARNING

PIMFA WEBINAR: CYBER RISK MANAGEMENT – HOW COMPLACENCY CAN RUIN YOUR REPUTATION

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8 JUN

PIMFA LIVE ONLINE

LEARNING: T&C UNDER CONSUMER DUTY: WHAT YOU NEED TO KNOW SESSION

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This conference gives attendees access to industry leading debates from professionals across the regulatory, law enforcement, innovators and providers in the Financial Crime space.

The event will be taking place in-person in London and will also be live-streamed. Inperson tickets are limited and early booking is recommended.

Please note that responses to this email address are not monitored. If you wish to get in contact, please email info@pimfa.co.uk