PIMFA Weekly News Bulletin - 18 September 2020

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PIMFA WEEKLY NEWS BULLETIN | 18 September 2020 Welcome to your Weekly PIMFA Bulletin Grab a coffee and take 10 minutes to read this week's highlights and key issues affecting you and your firm

Dear Nigel,

In this edition of Bulletin, you will find the latest industry news, information on the impact of Covid-19 and other key issues PIMFA are working on for our members. We remain committed to representing our members, effecting meaningful change and being a key point of useful information. If there is anything in this newsletter, or in general that you have questions on, or that we can help you with, please contact us at enquiries@pimfa.co.uk.

COVID-19 & What's happening in PIMFA

New PIMFA Member Firm

We are pleased to welcome our latest new member firm to the association: Howden Insurance Brokers – Global insurance broking, risk management and claims consulting services

We look forward to working with you.

Brexit: State of the European

Brexit: The UK Internal Market Bill

Union Address The Internal Market Bill cleared its second reading vote by 340 to 263 votes in In her first State of the European Union

Parliament on 15 September. The Bill sets

(EU) speech on 16 September, EU

out changes to the Withdrawal Agreement

Commission President, Ursula von der

the Prime Minister signed with the EU last

Leyen, mentioned the UK – EU

year. Speaking to the Liaison Committee,

negotiations only briefly and said the talks

the following day, the Prime Minister said

have not progressed as the EU would

the Bill was a "belt and braces" measure

have liked and “that leaves us very little

in case of "extreme" interpretations of the

time.” She warned the UK not to break the

Withdrawal Agreement by the EU.

international law by unpicking the Withdrawal Agreement which “was agreed

He said he did not believe the EU was

line by line, word by word” and contains

negotiating the terms of the future

the terms of the UK’s ‘divorce’ from the

relationship with the UK in good faith but

EU including citizens’ rights and the

added that a no-deal scenario was "not

protection of the Good Friday Agreement.

what this country wants" and "it is not

She reminded the UK Government of

what our EU friends and partners want

Margaret Thatcher‘s speech made in

from us". His hope and expectation is that

1975, in which the former UK Prime

a no deal “won't be the outcome." Many

Minister said that “Britain does not break

MPs are expected to support an

the treaties”. She added that the

amendment to the Internal Market Bill,

Withdrawal Agreement has been ratified

tabled by Bob Neill MP, next week which

by the UK Parliament and therefore

would put parliamentary lock on the

cannot be unilaterally changed,

Government’s powers. According to

disregarded or dis-applied. This is a

reports, Downing Street is discussing the

matter of law, trust, and good faith, she

proposal and the Prime Minister is close to

said.

agreeing to give Parliament a final say over any changes to the Withdrawal Agreement.

Brexit: EU to extend access to London clearing houses Fraud Advisory Panel’s Fraud Watch group update

According to reports this week the EU is set to continue clearing euro derivatives in

Updates from the Fraud Advisory Panel’s

the UK post Brexit transition. Such a

Fraud Watch group contains information

decision would allow EU banks to use UK

on fraud risks and trends identified in the

clearing houses for another 18 months

last two weeks across the UK

after 31 December this year. There were

economy, as well as some useful tools

no comments from the European

that can be used to report fraud attempts

Commission this week but it is understood

via email or text or advertisement.

that the Commission is currently consulting Member States to allow EU access to London clearing houses from 1 January 2021 until 30 June 2022 Jan.

The latest update included information on: •

London is the world’s biggest centre for trading derivatives and the EU has wanted

Zoom and Microsoft 365) •

for a long time to bring the euro zone activity under European Central Bank

clearers time to develop their capacity to clear relevant trades.

Fraudulent coronavirus insurance adverts

•

scrutiny. Allowing temporary access is aimed at giving the euro zone-based

Phishing emails and letters (inc.

Fake fines claiming the individual has broken lockdown rules

•

Fraudulent pre-paid funeral plans

•

Business impersonation (esp. requests for employees to update their bank details)

FCA survey: Modern slavery & human trafficking

It also provided some preventative tips:

The FCA has recently put us in touch with

•

Themis, a risk consultant, in relation to a

International Charity Fraud Awareness Week will be taking

project on modern slavery and human

place 19-23 October.

trafficking in a financial services context.

o

We have agreed to disseminate the

Get involved and support the week by downloading

survey amongst our members to help

the supporters pack,

provide data for identifying the threat

available here.

posed by modern slavery and human

o

trafficking and understanding practical

Visit the Charity Fraud Awareness hub for free

measures to mitigate the problem.

helpsheets, webinars,

The survey is anonymous and you can

practical tutorials to help

find it here.

protect your charity from fraud.

•

Suspicious emails can be

2nd edition of Regulatory

forwarded

Initiatives Grid published

to: report@phishing.gov.uk.

•

Suspicious text messages can be forwarded to 7726.

Today, The Financial Services Regulatory

•

Report a fraudulent advert through

Initiatives Forum issued the second

the Advertising Standards Agency

edition of the Regulatory Initiatives Grid.

online tool.

The Forum is comprised of the Bank of England (including the Prudential Regulation Authority), Financial Conduct Authority, Payment Systems Regulator,

National Cyber Security Centre (NCSC) Survey

and Competition and Markets Authority, with HM Treasury attending as an observer member. The first edition of the Grid, which aims to give firms a clear idea of upcoming regulatory work, was published in May.

The NCSC are conducting research to understand what they can do to help organisations find cyber security products & services to assist them with their needs.

NCSC would also like to understand more about what they can do to help vendors of

Return of Webinar Wednesday

these products & services connect consumers to their offerings.

Webinar Wednesday returned this week

If you would like to hear about

with its first webinar looking at the ESG

opportunities to take part in this research

investing universe with PIMFA's head of

please leave your details in this form and

learning, Phillip Allen, senior policy

they will get in touch

adviser Des FitzGerald and Morningstar's

- https://forms.gle/deRokU9Fq99HQ9ZX6

Anastasia Georgiou. If you missed the live webinar you can access it and all past webinars and podcasts on the PIMFA

If you have any further questions about this research, please contact fiona@fluent-interaction.co.uk

members only learning library.

Click here if you have forgotten your password or to create a user account.

The Power of Purpose

25% OFF ALL HARRIMAN BOOKS - FOR PIMFA MEMBERS ONLY

In partnership with Harriman House, PIMFA is delighted to offer members an exclusive 25% discount on high quality

Join Caroline Holt, the UK’s go-to expert on the Imposter Syndrome for an

books from over 300+ titles in print, eBook and audio form.

examination of The Power of Purpose. In this FREE interactive webinar on

To order, please click here.

Wednesday (23 September), we will look at what stops you from creating the life that you really want. And, we’ll explore

New Operational Resilience Paper

how to harness the power of purpose to achieve your professional ambitions AND have a fulfilling personal life. To register

PIMFA has just launched our latest paper

for this free webinar click here

for members titled 'Wealth Managers & Financial Planners - A Resilient Bunch: A paper on how extraordinary events can transform a business community' which can be accessed here.

PIMFA raises concerns over FCA supervision & FSCS levy in evidence to Work and Pensions Select Committee

As a major commitment in our Members Manifesto, and from our ongoing dialogue with you our members, the future of UK supervision, ensuring robust and thriving markets and dealing with the inherent issues with the Financial Services Compensation Scheme (FSCS) and its levy are key priorities for PIMFA. We continue to work tirelessly with key stakeholders to effect meaningful change, and as part of this ongoing lobbying, PIMFA's Director of Policy and Government Relations, Tim Fassam, gave evidence to the House of Commons’ Work and Pension Select Committee inquiry into pension freedoms and scams on Wednesday (16 September) .

Watch the session here.

PIMFA addressed the twin problems of the failure of the FCA to provide adequate supervision of firms, as outlined in the most recent PIMFA whitepaper , ‘FCA Supervision – fit for purpose?‘, and the ever-increasing financial burden place on advisers by the FSCS levy. Both of which result in poor outcomes for consumers.

Tim went on to add that any solution to the current situation must also take account of the challenges posed by the FSCS, whilst balancing the obvious and ongoing need for consumer protection. It has been PIMFA’s view for some considerable time that the standard of supervision carried out in this sector is inadequate and has led to significant market distortion. Unless this is addressed, compensation costs will continue to rise, as will levy payments to the FSCS by our members.

PIMFA will continue to work constructively with the relevant stakeholders to address this and we are pleased to see the FCA recognise that ever increasing, unpredictable FSCS costs are unacceptable by putting out their call for input this week. PIMFA will be meeting with the FCA's Charles Randall and Megan Butler, along with a host of member firms, in October on these issues. In addition [suggest comma here] we be briefing FCA and HM Treasury on the findings from our recent FSCS members survey. More to follow on this.

If you have any queries on this or any of our work, would like to be more involved or perhaps join one of our committees or forums please contact us at enquiries@pimfa.co.uk.

LATEST PIMFA BLOGS & PRESS RELEASES

•

Scams and FSCS issues are symptomatic of supervisory failings says PIMFA at Select Committee inquiry

•

PIMFA welcomes FCA call for evidence on how to improve the consumer investment market

•

PIMFA launches online ESG Academy to help advisers meet soaring investor demand

•

PIMFA welcomes Work and Pensions Select Committee investigation into pension scams and wider inquiry into pension freedoms

•

PIMFA welcomes Government consultation into greater regulatory oversight of financial promotions

•

PIMFA supports TheCityUK report on recapitalising businesses post-Covid19

•

Blog: ESG and Covid 19

EVENTS & LEARNING

PIMFA Webinar: The Power of Purpose: How to achieve your professional ambitions and have a fulfilling personal life 23 September You’ve had some career success and know you’re capable of more. You have goals and plans. However, you want your life to be about more than just work. How do you achieve your professional ambitions and balance those with your personal priorities?

Join Caroline Holt, the UK’s go-to expert on the Imposter Syndrome, on 23 September from 12.30 to 13.30 for an examination of 'The Power of Purpose'. In this interactive webinar, we will look at

what stops you from creating the life that you really want. And, we’ll explore how to harness the power of purpose to achieve your professional ambitions AND have a fulfilling personal life.

For more info and to book your place, please click here.

PIMFA Training Getting the DB Pension transfer advice process right 13 October In this online session we will help you: •

Understand what’s going wrong with DB pension advice, and how you can get it right

•

Grasp the FCA’s expectations as to how to act and treat customers

•

Identify weaknesses and poor practices in your existing advice process

•

Learn how to test whether your DB pension transfer advice is likely to stand up to FCA scrutiny

•

Receive tips on how to ensure you capture the right “know your customer” information from clients

•

Recognise how you can improve (and shorten!) your suitability reports

For more info and to book your place, please click here.

PIMFA Training Is your approach to vulnerability fit for purpose?

5 November

This practical live online learning session underpinned by PIMFA member guidance on vulnerability and delivered by an experienced senior practioner will help your firm review your current approach to vulnerability in light of COVID-19 and recent regulatory announcements.

By attending this live online learning session, you will learn how to: • Interpret what the FCA latest guidance on vulnerability means for your firm.

• Grasp the full extent of your regulatory obligations on vulnerability in light of COVID-19 • Adopt the strategies and approaches leading firms take to developing and embedding a vulnerable-centric approach.

• Embed a culture that consistently supports vulnerable clients better than you do today..and more...

For more info and to book your place, please click here.

PIMFA Training SM&CR conduct rules train the trainer programme 19 November As the regulator expects firms to have role-specific training in place that provides a high degree of confidence that conduct rule breaches will be identified, a new and different approach to Conduct Rules training is required. But creating your own SM&CR Conduct Rules training in line with the FCA expectations stipulated in COCON 2.3 FCA Handbook takes time.

Firms will need to plan, research, design, write, create and deliver practical sessions, with an emphasis on job rolespecific training by 31st March 2021!

That’s why PIMFA has partnered with City HR to create a cost effective, ‘Train the Trainer’ workshop and toolkit that takes all the hard work away from you – allowing you to focus on delivery only.

For more info and to book your place, please click here.

PIMFA Event Virtual Associate Members Update

In this session we will explore topics such as regulation, operations, Brexit, financial crime, ESG and more, while also providing an opportunity to discuss with PIMFA staff specific issues important to the membership.

This event also showcases our ongoing events and publications programme

providing examples of how Associates can engage with Members and maximise the value they receive from their membership.

This event is FREE for PIMFA Associate Members.

For more info and to book your place, please click here.

The PIMFA ESG Academy, which launched on 15th September 2020, is a self-paced online programme that is definitely NOT your traditional online class! As you learn at your own pace and in your own time, you will have access to an evergreen library of ESG content that you can engage and interact with on your tablet, computer and mobile – all free for PIMFA members!

The PIMFA ESG Academy, supported by Morningstar, is our response to the growing demands by advisers for an immersive, engaging, CPD-approved learning experience that supports them in making the most of the growing ESG opportunity by having more effective ESG conversations with their clients.

Please click here to find out more.

PIMFA IN THE PRESS

Money Marketing: Campaigners urge crackdown on internet pension fraud Citywire: FCA failure to police small advice firms causes FSCS pile-up – Pimfa Professional Adviser: PIMFA warns MPs on 'out of control' FSCS levy Cover Magazine: Financial advice aids emotional wellbeing - Royal London CityAM: Share and share alike: electronically?

Professional Adviser: Anthony Rafferty; Keeping your clients' information secure FT Adviser: FCA wants evidence of 'informed decisions' in DB advice

LATEST PIMFA CONSULTATION RESPONSES

PIMFA’s latest consultation response is to HM Treasury regarding their consultation on expanding the Dormant Assets scheme

Read this and all of our other PIMFA consultation papers here.

WHAT'S HAPPENING IN OUR INDUSTRY

FCA Annual Report 2019-20

Unsurprisingly, in its end of year report, the FCA confirms the main challenge it faced, and continues to deal with, is COVID-19.

The FCA is continuing preparations for Brexit and SM&CR and is monitoring the risk of scams as well as impacts of high-cost credit and large transaction volumes relating to investments and pensions.

The proper functioning of the credit market is crucial and the FCA is confident its nimble response to COVID-19 reflects historical investment in new systems and changed processes and conducting more effective data analysis. The focus on operational resilience highlights the continuing importance the FCA places on firms being able to mitigate operation risk and plan for unexpected events (like COVID-19) and not to underestimate the impact on operations from such risks.

In terms of Green Finance, the FCA has ongoing engagement with the Treasury in the

context of the UK Government’s commitment in its Green Finance Strategy to match the ambition of the objectives of the EU Sustainable Finance Action Plan, and more engagement with the sector is expected on this issue.

The FCA's Annual Report and Accounts 2019/20 can be accessed here.

FCA Covid-19 Impact Survey

The FCA issued the first phase of the COVID-19 impact survey in June covering around 13,000 firms across 15 Supervision portfolios (Tranche 1), and then rolled this out to a further 9,500 firms in 21 portfolios (Tranche 2) at the beginning of August. The survey has helped them obtain an accurate view of the impact of COVID-19 and supported their work to mitigate risks of harm to consumers, the market and competition within it. As advised previously, they will now be repeating this survey for Tranche 1 to understand the change in firms’ financial positions with time.

The FCA are planning to send this survey to the relevant firms in Tranche 1 on one of the following dates:

Batch 1: to be sent on 16 Sept - response due by 30 Sept Batch 2: to be sent on 17 Sept - response due by 1 Oct Batch 3: to be sent on 18 Sept - response due by 2 Oct Batch 4: to be sent on 22 Sept - response due by 6 Oct Completion of the survey is mandatory under section 165 of the Financial Services & Markets Act (FSMA) 2000. The FCA may exercise their powers under FSMA for firms who do not respond. They have designed this survey so that it is quick and simple to complete. However, if due to exceptional circumstances a firm cannot access its financial information, they will need to ensure that they complete the questions where the relevant information is available.

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