PIMFA Weekly News Bulletin - 23 November 2020

View this email in your browser

PIMFA WEEKLY NEWS BULLETIN | 23 November 2020 Dear Nigel Welcome to the PIMFA Bulletin, grab a coffee and take 10 minutes to read this week's latest industry news impacting you and your firm.

LATEST NEWS

Brexit Negotiations

EU Brexit Contingency Planning

The UK and EU Chief Negotiators have

Belgium, France and the Netherlands

decided to suspend Brexit negotiations “at

have asked the European Commission

our level” and “for a short period” after an

(EC) to step up its contingency planning

EU negotiator tested positive

for a no-deal Brexit. During the video

for coronavirus. The two teams “will

summit of the EU heads of state or

continue their work in full respect of

government on 19 November, the leaders

guidelines and the talks will resume in

were given a state of play briefing on the

person when it is judged safe to do so”.

Brexit negotiations and concluded that planning for a no deal should take place in

Some progress has been made in the

parallel with the talks.

talks over past weeks on converting the agreement into legal text but familiar gaps

The EC has been reluctant to do this so

remain on fishing, level playing field and

far, as it felt this could be seen as a sign

governance. The differences are long-

that the EU has lost faith in reaching a

standing and achieving any movement

negotiated deal.

may require a political intervention at the highest level to unlock a compromise - if one is to be found at all. Any future deal

Equivalence

needs to be translated, proof read and then ratified by both UK and EU parliaments and time is running out.

Edwin Schooling Latter, FCA Executive Director for Wholesale Markets, told a parliamentary Committee this week that European Central Bank

the UK will diverge from EU securities rules only in “exceptional” circumstances, given that the UK played a key role in

The European Central Bank (ECB) warns

shaping MiFID securities rules and still

banks this week to prepare for Brexit. With

supports their objectives. The EU has not

the end of the transition period

said if it will grant equivalence to the UK

approaching fast and the Brexit

and allow financial services firms better

negotiations ongoing, the ECB says banks

access to the EU Single Market. So far,

must continue to use the remaining time to

the European Commission has granted

ensure that they are fully ready for the

only one equivalence decision in favour of

regime change, including having a

the UK, recognising UK clearing houses

physical presence in the EU to the extent

so EEA firms can use them for derivatives

necessary as a prerequisite for achieving

transactions.

prudent risk management and effective supervision.

The EU insists it will only make decisions on equivalence once the UK has provided

Moving assets and staff is an important

information on how far it will diverge from

step, but the ECB also expects banks to

the EU rules post the Brexit transition

be structurally profitable and operationally

period.

self-standing, in particular by not relying excessively on back-to-back set-ups with entities in third countries for their risk

Future of Financial Services

management. The ECB says that EU

Inquiry

products and transactions with EU clients involving non-EU products should be booked in the EU. The Treasury Committee has launched an inquiry into the future of financial services after the Brexit transition period ends. It Deadline for reforms in the Financial Services Bill

will examine how financial services regulations should be set and scrutinised

by Parliament, as EU directives will cease to govern new rules and regulations.

HM Treasury, the FCA and the PRA have released a joint statement declaring that

It will also consider how regulators are

the deadline for implementation of the

funded and the extent to which financial

prudential reforms contained in the

services regulation should be consumer-

Financial Services Bill (including the new

focused. The deadline for submitting

prudential rules for investment firms) is set

evidence is 8 January 2021.

at 1 January 2022.

PIMFA in the Press

Read the full statement here.

New Swiss National Services Act

•

Mail on Sunday/Thisismoney.co.uk: Small shareholders being 'robbed' by

The new Swiss Financial Services Act

City rule blocking them from

(FinSA), which came into force on 1

investing in shares worth billions in

January 2020 requires client advisers of

pandemic

foreign financial service providers carrying

•

MoneyMail/Thisismoney.co.uk:

out their activity in Switzerland to enter in

Why thousands can't cash in their

a register of advisers. This requirement

pension: Savers struggle to hire

applies to client advisers of foreign

financial intermediaries providing cross-

financial advisers after watchdog

border investment services in or into

cracks down on transfers

Switzerland, unless targeting exclusively

•

professional or institutional clients or acting solely on a reverse solicitation

Professional Adviser: Brexit: How are advisers preparing clients?

•

basis.

Money Marketing: FCA probes wealth firms’ readiness for negative rates

Applications for registration must be

•

entered by January 2021 at the latest.

ESG Clarity: Industry says UK’s £12bn climate plan welcome but ‘not enough’

PIMFA’s Guide to Remuneration

•

Actuarial Post: PIMFA looks to the future and updates member manifesto

As part of a series of guides to provide support for members, PIMFA has published a Guide on Remuneration.

Latest PIMFA Press Releases

Section 1 of the Guide provides an overview of the remuneration rules that currently affect our member firms, whilst

•

PIMFA hosts first in series of

Section 2 sets out a summary of the

masterclasses to encourage

anticipated changes that are soon due to

young women from all

take place, following on from the

backgrounds to consider a career

introduction of the new prudential regime,

in finance

which will also bring changes to the

•

Senior Wealth management and financial advice figures gather for

remuneration provisions.

PIMFA's virtual leadership summit You can read the members only Guide to

•

PIMFA calls for the approval of

Remuneration here* -

unregulated financial promotions

(*member log in required/get a password

to be a regulated activity

reminder).

•

PIMFA welcomes first reading of Financial Services Bill

PIMFA sets out priorities for the future as it updates Member Manifesto

PIMFA has updated its Members’ Manifesto following consultation with members and the fast-paced development of the industry, further accelerated through the Covid-19

pandemic. Each of the six pillars remain central to the focus of PIMFA with specific objectives outlined in each area.

The Financial Services Compensation Scheme (FSCS) levy, Professional Indemnity Insurance (PII) and the Future of Supervision are listed as top priority , building on themes laid out in our policy paper on ‘The Future of Supervision’ released earlier this year and our recent FSCS research report.

In the coming year PIMFA will also particularly focus on the future of the sector and issues such as the impact of Brexit, Environmental Social and Governance investing, digital transformation, diversity and inclusion and talent. This year PIMFA has undertaken various projects in these areas such as; the launch of the ESG Academy, the Authentic Leadership programme; career masterclasses for young women and girls with our partners at The Brokerage – alongside various Brexit communications and our work on financial and mental wellbeing; pensions and scams.

Read the Manifesto or full press release.

Latest PIMFA Consultation Response

PIMFA’s latest consultation response is to the FCA on the Liquidity Mismatch in Authorised Open-ended Property Funds.

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

EVENTS & LEARNING

PIMFA Training Getting the DB Pension transfer advice process right 24 November 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 SM&CR Conduct Rules: Train the Trainer Programme 10 December This training workshop and toolkit is ideal for firms that want to: • Feel confident you have delivered a high standard training course in line with the FCA’s requirements • Train all certified staff on the Conduct Rules by 31st March 2021 • Provide a refresher Conduct Rules training session for senior managers • Tailor their firms Conduct Rules training to specific staff job roles • Train an unlimited number of your staff on the Conduct Rules for a single, one off payment • Receive fully editable training course materials that can be personalised by you for your firm • Utilise the SM&CR resources that are used in over 30 banks and Building Societies For more info and to book your place, please click here.

PIMFA Training What does good 'Training and Competency' look like in your firm under COVID-19?

14 December What are the key learning objectives of the course?

Training and competence requirements are not static they are ongoing and must be demonstrated as a continuing process to reflect the current climate. The regulator expect no less of regulated firms.

This practical online training session provides professionals who are involved in the design, implementation or overseeing of T&C with the knowledge to help develop and adapt a successful T&C Framework and approach for a displaced workforce.

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

PIMFA Online Conference Virtual Fest V2 27- 28 January 2021 Following on from the HUGE success of the inaugural PIMFA Virtual Fest in June 2020, we are proud to announce that bookings are now open for Virtual Fest V2. Taking place over two days (27 & 28 January 2021) the event will deliver presentations on key areas which members have identified as their key short- and long-term focus including:

• Compliance • Risk and Resilience • ESG and Impact Investing • Cyber Resilience For more info and to book your place please click here

WHAT'S HAPPENING IN OUR INDUSTRY

PIMFA are delighted to be joining 75 speakers at INTERGEN2020, an immersive virtual conference taking place w/c 30th November. A limited number of places are available for PIMFA Members. To join, please click here.

FCA on Brexit preparation

Speaking at the UK’s Regulatory Regime for Financial Services Summit about the end of the Brexit transition, Nausicaa Delfas, the Executive Director of International at the FCA, said the financial services sector should not be complacent and should continue to prepare for the end of the transition period. The FCA will ensure that the regulatory approach to financial services remains effective and appropriate post Brexit and that the UK builds on

its global standing whilst demonstrating its commitment to open markets, free trade, and the highest international standards of regulation.

Delfas also warned of two risks that could affect financial-services trading in a potential nodeal Brexit; firstly, a lack of data adequacy approval, which may hamper the transfer of personal data and, secondly, a lack of EU-wide permissions which would allow UKregulated firms to take on EU clients. Delfas warned that, in some cases, it will not be possible for UK firms to continue servicing their contracts with EU resident customers, and said “because it’s a patchwork solution, there are bound to be some areas of disruption.”

Brexit Preparedness for PIMFA firms

The Brexit transition period ends on 31 December 2020. Regardless of the outcome of the UK – EU negotiations on the terms of the future relationship, firms with clients in the EU will need to adjust to operating from a third country in relation to the EU. Retail financial services firms cannot rely on pan-European set of rules for servicing customers in the EU and, with passporting lost and no equivalence available in the retail investment sector, the options for PIMFA firms to continue cross border trade with the EU are limited and mostly dependent on the approaches adopted by national regulators in the EU Member States.

It is important that firms communicate any post Brexit changes in their business model to customers, speak to local EU regulators and ensure they understand the national regulator’s approach and the impact it will have on their business post Brexit transition.

FCA Defined Benefit (DB) Transfer Advice Data Request

The FCA issued a DB data request on 1 July 2020 to 1965 firms who held DB permissions.

This covered the period from 1 Oct 2018 to 31 March 2020.

They are now issuing a further request covering the period from 1 April 2020 to 30 September 2020 (6 months). However, any firms who failed to respond to their previous request in July will be required to complete the request for the full period from 1 October 2018 to 30 September 2020 (24 months).

The FCA are contacting all firms who hold permission to advise on DB pension transfers and other safeguarded benefits, requesting further data to allow them to continue to understand the shape of the entire DB transfer advice market.

Their new request was issued on 18 November 2020 at 2pm, asking firms to submit their response by 11 December 2020.

The FCA have asked us to make members aware that the request is genuine and was issued from the following email address: pensiontransfers@fca.org.uk.

Contact Us

Bulletin contains the latest industry news and updates on key issues PIMFA are working on for members. If you have queries on our work, or anything in Bulletin, please contact us at info@pimfa.co.uk.

BECOME A MEMBER Find out more about becoming a PIMFA member here.

Read our membership brochure or chat to our team at membership@pimfa.co.uk.

www.pimfa.co.uk Personal Investment Management & Financial Advice Association (PIMFA) 22 City Road, Finsbury Square, London EC1Y 2AJ (registered in England No 2991400) Unsubscribe | Manage Profile | Terms and Conditions

This email was sent to NigelRS@pimfa.co.uk why did I get this?

unsubscribe from this list

update subscription preferences

PIMFA 路 22 City Road 路 Finsbury Square 路 London, EC1Y 2AJ 路 United Kingdom