PIMFA WEEKLY BULLETIN
PRESS RELEASES ABOUT PIMFA CONSUMER DUTY
WEALTHTECH
PIMFA raises concerns over the Financial Conduct Authority’s capital deduction for redress plans and calls for further discussion
PIMFA recently raised serious concerns about the Financial Conduct Authority’s (FCA) proposals for personal investment firms (PIFs) to calculate their potential redress liabilities and has called for further engagement with the Regulator.
The proposals put forward by the FCA to increase the accountability of firms that have exposure to redress liabilities do move towards a ‘polluter pays’ model, which PIMFA has been advocating for, for several years.
But they could see well-run firms holding additional capital for redress that may never be required and paying higher Professional Indemnity (PI) premiums that include additional exemptions. In the worst cases they may also lead to firm failures as a result of additional capital allocation requirements that would still leave clients falling on the FSCS.
PIMFA has no confidence in the effectiveness of how these proposals will be supervised and enforced and are concerned that bad actors, who are the target of the proposals, will continue to behave in a manner resulting in well-run firms having to pay for their failures.
The FCA has also indicated it is considering moving towards a more comprehensive prudential regime for PIFs, drawing on the experience of introducing the Investment Firms Prudential Regime (IFPR) in January 2022. PIMFA is strongly in favour of a review of the PIFs’ prudential regime and moving towards an alignment with MiFID investment firms in a reasonable and proportionate manner and is therefore calling for further discussion between the Regulator and industry about the implementation of these proposals.
You can read the PIMFA response here.
PIMFA Under 40 Leadership Committee - New Research
Each year PIMFA works with a cohort of rising talent across our industry, called the Under 40 Leadership Committee and, as part of their most recent round of research, the Committee has investigated whether, in creating a culture of savings and investment, long term financial planning can ever be ‘trending’.
The symposium is FREE to attend for PIMFA members and associate members and solely funded by our wonderful sponsors, and we encourage individuals at all stages of their career, from Chief Executives to Interns, to join us for two days of motivational talks, regulatory updates, industry panels, personal development roundtables and thought-provoking content related to our industry, and to career development.
The event is open to all! Women and men welcome.
PIMFA Regulatory Forum recording from Tuesday, 26 March
The March Regulatory Forum has now been posted on the PIMFA website HERE The recording includes:
• FCA CP24/2 Enforcement Guide and Investigation
• HMT AML Effectiveness
• FCA review of Vulnerable Customers
• FCA Advisors Sustainability Update
• Accelerated Settlement Taskforce T+1 update
• PIMFA response to CP26/23 Operational Resilience: Critical third parties to the financial sector
• Spring budget update
• PIMFA Events and Learning Schedule
If you are from a PIMFA member or associate firm and would like to be added to the distribution list to attend the next Regulatory Forum on Tuesday, 30th April from 3pm to 4pm, please contact Heidi Bryant
Financial Conduct Authority’s new Form A
In the latest business plan, the FCA committed to making it quicker and easier for firms and people to apply for authorisation. Form A is the first form that is being updated in order to achieve this. The FCA have made changes based on feedback received from the industry, and firms have described the improved form as “excellent”, “much more user friendly”, intuitive” and having “clearer expectations”.
• The improved Form A has some changes to requirements and some new questions. These are outlined on the FCA webpage.
• The FCA plan to gradually roll out the new form to all firms from April.
• Once the improved form is available to your firm, you will be automatically directed to it via the Connect platform.
• Any outstanding draft applications that have been created can still be submitted using the old version, but all new applications will use the improved form.
• Form A applications which relate to becoming authorised for the first time, or to variations of permission or appointed representatives will be updated with the new requirements shortly.
• There is more information about the changes the FCA have made and answers to frequently asked questions on their webpage.
• The next form the FCA are planning to work on is the Sensitive Business Names which will be available for testing shortly.
If you have any issues or questions, get in touch with Alex Roberts
Financial Conduct
Authority: FG 24-1
Finalised guidance on financial
The Financial Conduct Authority (FCA) has published a statement and finalised guidance to clarify the FCA’s expectations of firms and influencers in communicating financial promotions.
promotions on social media
• The guidance sets out how adverts across social media channels must be fair, clear and not misleading, meaning they must have balance and carry the right risk warnings so people can make well informed financial decisions.
• This follows the introduction of stronger rules on advertising high-risk investments, including crypto, and the FCA’s ongoing InvestSmart campaign to encourage people to make better informed investment decisions.
Firms are advised:
• To consider this guidance alongside their Consumer Duty obligations to deliver good outcomes for retail customers.
• The FCA expects financial promotions to be standalone compliant so that each communication, when considered individually, is compliant with the FCA’s rules.
Access the Finalised Guidance and Feedback Statement here.
HM Treasury: Policy paper on next phase of the UK’s Smarter Financial Services Regulatory Framework
HM Treasury (HMT) has published a policy paper ‘Building a Smarter Financial Services Regulatory Framework for the UK: Next Phase.’
The paper sets out details on the next phase (Tranche 3) for the repeal and replacement of assimilated law in order to deliver a Smarter Regulatory Framework (Chapter 3) and also covers progress to date on repeal and replacement (Chapter 2).
Financial Conduct
Authority: CP24/4:
Further consultation
on the regulatory framework for
The Financial Conduct Authority (FCA) are proposing to include guidance in their Perimeter Guidance Manual (PERG) to help firms understand the scope of this new regulated activity and when FCA authorisation and permission is required. The FCA are also inviting feedback on 2 proposed changes to proposals in CP22/25
pensions dashboard service firms
The deadline for comments on the proposals (including the draft Handbook text in Appendix 1) is 8 May 2024. Read the full consultation paper here
PRESS RELEASES
PIMFA raise concerns over FCA’s capital deduction for redress plans...
PIMFA urges Financial Conduct Authority to provide firms with the
PIMFA WealthTech and Morningstar invite FinTechs to showcase ESG
PIMFA welcomes FCA proposals for Sustainability Disclosure
PIMFA welcomes the Financial Conduct Authority’s proposals for...
READ MORE
PRESS COVERAGE
Financial Times: Isa season how to build tax-free wealth
FT Adviser: Financial product promotion a barrier to taking advice
Funds Europe: Pimfa raises concerns over FCA’s redress proposals
FT Adviser: 'Closing the advice gap: this time could really be different'
Mortgage Finance Gazette: Blog: Ensuring good outcomes
READ MORE
PIMFA LEARNING
6 June 2024
Live Online Learning | 09:00 - 12:00
£300 - £400
FINANCIAL CRIME BUSINESS-WIDE RISK ASSESSMENT- THE KEY TO GETTING IT RIGHT
The Business Wide Risk Assessment (BWRA) is a key pillar in understanding the risks posed to your business and monitoring the effectiveness of you control framework. Yet so many firms are still getting this critical, living document wrong and thus falling short of regulatory expectations.
Through this masterclass, you’ll learn how to:
• Complete a comprehensive, yet proportionate assessment;
• Document the methodology in a clear, reliable way; and
• Use the outputs of the risk assessment to inform and enhance the financial crime framework.
REGISTER HERE
24 May 2024
Live Event | 10:00 - 17:00
£225 - £550
PIMFA FINANCIAL CRIME CONFERENCE 2024
The PIMFA Financial Crime Conference is returning in 2024 and will aim to update attendees on the evolving financial crime landscape. Firms and their clients remain at risk and the event will aim to give PIMFA members the know how to protect themselves.
Attendees will get access to industry leading debates from professionals across the regulatory and law enforcement in the Financial Crime space, as they discuss the current threat landscape emerging from new techniques and technologies, and what can be done to operate in a safer and more resilient environment.
REGISTER HERE
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