PIMFA Weekly News Bulletin - 20 December 2021

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PIMFA WEEKLY NEWS BULLETIN | 20 December 2021 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 Lobbying: Paid-for advertising recommended for inclusion in the Online Safety Bill

Following sustained pressure from PIMFA in coalition with consumer groups, charities & industry bodies including Which?, UK Finance, Martin Lewis and MoneySavingExpert, the Investment Association, the Association of British Insurers, The CityUK and the Money and Mental Health Policy Institute and many others, the Joint Committee on the Draft Online Safety Bill has recommended the inclusion of paid-for advertising within the scope of the Online Safety Bill.

We regard this as a victory for common sense and look forward to the recommendation becoming a reality.

Read more in the press release here.

PIMFA & Accenture Survey

PIMFA, in collaboration with Accenture, are currently conducting a short survey on what Wealth Management firms are doing to meet current challenges and opportunities and how they intend to future proof and secure their franchises.

This survey forms an integral part of our research to provide a view of the key impacts on the industry post pandemic and reflect on how firms are evolving.

We expect the Survey to take you no longer than 20 -30 minutes to complete.

To complete the survey, please click here.

Latest PIMFA Press Releases

Latest PIMFA Press Coverage

Coalition of consumer groups, charities & industry bodies welcomes recommendation by committee of MPs to include paid-for digital ads in Online Safety Bill & calls on Government to act

Sunday Times / Raconteur: New returns: banks move back into wealth management Credit Connect: New Online Safety Bill

PIMFA calls for FCA to make better use of data in supervising Appointed Representatives PIMFA calls for greater ambition to solve FSCS levy funding issues PIMFA raises concerns about FCA’s ‘woolly’ Consumer Duty proposals FCA pledges to work with PIMFA & the industry to stabilise, and eventually reduce, the FSCS levy at PIMFA’s Leadership Summit

proposals welcomed

Financial Times: Finance industry sceptical over FCA plan to shake up rules

Professional Adviser: FCA clamps down on Appointed Representatives in fresh consultation

International Adviser: FCA eyes ‘fundamental shift’ in customer protection standards Insurance Post :'Challenging' changes ahead under consumer duty

PIMFA's Latest Consultation Responses

PIMFA’s latest Consultation Response is to the FCA CP 21/28 on the New Cancellation and Variation Power; Changes to the Handbook and Enforcement Guide.

Read this and all other PIMFA consultation papers here.

PIMFA GUEST BLOG

GoSimpleTax (GST) - The Tax Tool that all Wealth Managers Need

Investing in Self Assessment support is becoming more popular amongst wealth managers. By offering to simplify or help with the tax return process for your high net worth clients, wealth managers are able to further support with tax planning and boost the value of their service - in this blog PIMFA Plus Partner, GoSimpleTax explains more.

Read the blog here.

PIMFA Events & Learning

Cutting the cost of AML, Compliance in Wealth Management Firms

According to LexisNexis Risk Solutions latest report, ‘Cutting the Cost of AML Compliance’, UK financial services firms are collectively spending a massive £28.7bn on their AML compliance activities, annually.

We’re joined by one of the authors of the report, Nina Kerkez, director of consulting at LexisNexis® Risk Solutions, and Brian Swanston, UK Head of FCC Advisory at Fidelity International to discuss what’s driving these costs and how wealth management firms can reduce their regulatory burden.

Please click here to listen to the Podcast

PIMFA Live Online Training: Understanding CASS - How to Spot CASS Risks to your Business

25 January 2022 CASS is an ongoing area of interest for the FCA and we continue to see reminders that firms must regularly review CASS controls to ensure they’re robust and fit for purpose.

Specialist trainers from Bovill will look at the CASS rules in detail whilst also following a firm case study through the key areas of CASS to look at how the rules might impact a firm and the risks that firms should look out for. We aim to make the session as interactive as possible and encourage firms to talk about their experiences and ask questions.

To find out more and register, please click here.

View Upcoming PIMFA Events & Learning here

UK G7 Presidency Comes to a Close

G7 Finance Ministers and Central Bank Governors have met for the final time under UK’s Presidency. At the virtual meeting of Finance Ministers and Central Bank Governors, Rishi Sunak highlighted the string of major agreements that have been struck under the UK’s leadership over the past 12 months to help build a stronger and more resilient global economy.

This includes agreeing to back an historic international tax agreement to tackle the challenges that arise from an increasingly globalised and digital economy. The landmark deal reforms global tax rules so that big international companies will pay tax in the countries they do business, as well as cracking down on global avoidance through a 15% minimum tax rate.

Other key achievements include committing to work together for as long as needed to support the world’s economic recovery from the Covid-19 pandemic and to tackle global supply issues, supporting the allocation of $650bn in IMF Special Drawing Rights and securing commitments by stronger economies to channel some of these funds to countries in need; embedding climate change and biodiversity loss considerations into economic and financial decision making; gaining G7 agreement for nations to follow the UK in making climate-related financial reporting mandatory and to crack down on proceeds from environmental crimes; achieving G7 agreement to work together to spur market growth to tackle antimicrobial resistance and agreeing Public Policy Principles for Retail Central Bank Digital currencies (CBDC) to support and inform domestic policy and design.

Bank Rate Increased to 0.25%

At its meeting ending on 15 December 2021, the Bank of England’s Monetary Policy Committee (MPC) voted by a majority of 8-1 to increase Bank Rate by 0.15 percentage points, to 0.25%.

The Committee voted unanimously for the Bank of England to maintain the stock of sterling non-financial investment-grade corporate bond purchases, financed by the issuance of central bank reserves, at £20 billion. The Committee also voted unanimously to maintain the stock of UK government bond purchases, financed by the issuance of central bank reserves, at £875 billion, and so the total target stock of asset purchases at £895 billion.

In the MPC’s central projections in the November Monetary Policy Report, global and UK GDP were expected to recover further from the effects of Covid-19 (Covid) in the near term. Conditioned on the rising path for Bank Rate expected by financial markets at that time, upward pressure on CPI inflation was expected to dissipate over time, as supply disruption eased, global demand rebalanced from goods to services, and energy prices

stopped rising.

Earnings growth was also expected to fall back from its current rate. As a result, inflation was projected to reduce materially from the second half of next year.

UK and Australia Sign Trade Deal

The UK has signed a trade agreement with Australia, setting new global standards in digital and services and creating new work and travel opportunities for the British and Australians.

This is the first trade agreement the UK has negotiated from scratch since leaving the EU. The deal was agreed in principle by the UK Prime Minister and Australian Prime Minister Scott Morrison in London in June, and negotiators have now finalised all chapters of the agreement. The deal is expected to unlock £10.4 billion of additional trade, boosting UK economy and increasing wages across the UK, while eliminating tariffs on 100% of UK exports.

It is a deal tailored to the UK economy, with cutting-edge agreements in areas where Britain is a world leader, including in digital and tech, along with increased access to Australia for the UK’s powerhouse service sectors. The deal is also a gateway into the fastgrowing Indo-Pacific region and will boost the UK’s bid to join CPTPP, one of the largest free trade areas in the world, covering £8.4 trillion of GDP and 11 Pacific nations from Australia to Mexico.

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