PIMFA Weekly News Bulletin - 20 March 2023

Spring Budget

The Chancellor of the Exchequer, Jeremy Hunt, delivered the Spring Budget on 15th March 2023.

The Government confirmed that the anticipated increase of Corporation Tax would be from 19% to 25% and is scheduled to go ahead from 1st April 2023. Firms should be aware that, alongside this rise, a new temporary regime of “full expensing” investment capital allowances has been introduced This regime will provide for a 100% firstyear allowance for main rate expenditure, or a 50% first-year allowance for expenditure on special rate (including long life) assets.

There is no limit on the amount of expenditure that can qualify for these allowances. As above, this regime has been introduced as a temporary measure but will be under review.

You will also no doubt be aware that the Government has undertaken to abolish the Lifetime Allowance, increase the Annual Allowance to £60,000 - the adjusted income limit has been increased to £260,000 - whilst also reinstating the Money Purchase Allowance to its previous level of £10,000. Whilst all of these changes are welcome, we are particularly happy to see substantive changes made to the MPAA, having sought substantive changes ahead of the Spring Budget.

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 Partners with 'Chasing the Stigma'

Chasing the Stigma is a national mental health charity whose aim is to normalise and humanise mental health conversations, whilst ensuring that everyone in the UK can clearly access support, whenever and wherever they need it.

They operate the UK’s largest directory of community mental health services, through the FREE TO USE website and app, HUB of Hope, that brings together thousands of local, national, peer, community, charity, private and NHS mental health support services all in one place, making it as easy as possible for people to find and access timely support during any stage of their mental health journey.

Normalising mental health conversations is something PIMFA encourages, and we are pleased to add Chasing the Stigma as a

on TIDE Campaign

Partner to our Talent, Inclusion, Diversity & Equity (TIDE) campaign.

PIMFA’s Advice Guidance working group

We are still seeking representation on PIMFA’s Advice Guidance working group. This is an issue which could potentially change the underlying propositions of a number of firms and we would encourage participation across the spectrum.

Further, we would invite practical examples from firms where the boundary as currently constructed has not worked well for you.

Please contact Simon Harrington on both counts.

FCA launch Consumer Duty firm survey

The FCA have launched a Consumer Duty firm survey, which is being sent to a sample of small and medium-sized firms to understand the progress they're making in implementing the Duty.

The survey will be carried out by Ipsos Mori. The results are anonymous and the FCA will not be told what any individual firms say.

The FCA has indicated that the survey results will help it understand how prepared firms are in meeting the implementation deadline of 31 July 2023 and how they can best support firms to embed the Duty effectively.

New FSCS Consumer Research

With inflation hitting a forty-year high last October, and interest rates hiked up in response, consumer’s financial decisions are being impacted as people seek to make their money go further. Highlights from new FSCS research on this topic from over 4,000 UK adults between September 2022 and February 2023 are available here

FCA seeks views on SME access to FOS

The FCA has published a call for input on whether the thresholds for small and medium sized enterprises (SMEs) to be able to refer complaints to the Financial Ombudsman Service (FOS) remain appropriate.

In 2018, they made new rules extending access to the FOS for more SMEs so they’re carrying out a review to understand whether the rules remain appropriate and to ensure that access to the Ombudsman Service remains available for SMEs that are unlikely to be able to resolve disputes with financial services firms through the legal system.

Feedback is requested by 28 April 2023. This will help inform the FCA’s review, along with analysis of independent survey data and data received from partner organisations including the LSB, the SME Financial Monitor survey, the FOS and the Business Banking Resolution Service (BBRS).

FATF reports and updates

On 10 March 2023, the Financial Action Task Force (FATF) published updated Recommendations which were adopted at its plenary on 15 February 2023. The revisions address new and emerging threats, clarify and strengthen many of the existing obligations, while maintaining the necessary stability and rigour in the Recommendations.

You can read the updated recommendations here.

On 14 March 2023, the FATF published a report on countering ransomware financing. The report highlights that criminals are almost exclusively using crypto, or virtual assets and have easy access to virtual asset service providers around the world. The report sets out a list of potential risk indicators that can help public and private sector entities identify suspicious activities related to ransomware. You can read the report here.

OSFI updated

guidance for breaches of financial sanctions

The Office of Financial Sanctions Implementation (OFSI) has published updated guidance on enforcement and monetary penalties for breaches of financial sanctions, including details on OFSI's approach to assessing breaches of financial sanctions where an incorrect assessment of ownership and control of an entity is relevant to the commission of the breach.

It also sets out examples and a principles-based approach for conducting due diligence and making assessments.

PIMFA welcomes abolition of pensions lifetime allowance

PIMFA outlines six-point plan to reform disclosure requirements in wake of PRIIPs reforms

PIMFA welcomes FCA proposals for core investment advice but warns they risk being undermined by unnecessary restrictions

PIMFA calls for Financial Conduct Authority to have greater role in protecting public from fraud

Read more press releases here

Actuarial Post : Chancellor announces 4 billion pound pension tax giveaway

TrustNet: Chancellor pulls ‘rabbit out of his hat’ with abolition of LTA

FT Adviser: Peers and MPs quash idea that govt dislikes consumer duty

The Wealth Net : PIMFA grows wealthtech advisory council

Money Marketing: Treasury consultation on PRIIPs good news for advisers, experts say

See more of PIMFA in the press

EVENTS & LEARNING

WEBINAR: CONSUMER DUTY THROUGH A TRAINING AND COMPETENCY LENS

30 March | 10:30 - 11:30

PIMFA FINANCIAL CRIME CONFERENCE

LONDON

18 May | 10:00 - 18:00

Would your organisation be confident to hand over their Training & Competence records to the regulator? If asked, could your firm demonstrate the gap analysis and subsequent development plans for each new starter you’ve onboarded in the

The PIMFA Financial Crime 2023 gives attendees access to industry leading debates from professionals across the regulatory, law enforcement, innovators and providers in the Financial Crime space.

last few years? Would being asked to demonstrate “role relevant” training on conduct rules to staff make you start to feel a little uncomfortable?

For more information and to register, please click here.

to register, please click here

For more

Unsubscribe | View in browser

You are receiving this email because you are subscribed to the 'Bulletin' Preference. If you no longer wish to receive this newsletter, please update your preferences here