PIMFA Weekly News Bulletin - 23 August 2021

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PIMFA WEEKLY NEWS BULLETIN | 23 August 2021 Dear << Test First Name >>,

Welcome to the PIMFA Bulletin; grab a coffee and take 10 minutes to read the latest industry news impacting you and your firm.

ONS GDP Monthly Estimate and Labour Market

According to the Office for National Statistics (ONS), the UK gross domestic product (GDP) is estimated to have increased by 4.8% in Quarter 2 (Apr to June) 2021, following the easing of COVID-19 restrictions. There have been increases in services, production and construction output over the quarter. The level of GDP is now 4.4% below where it was pre-coronavirus pandemic at Quarter 4 (Oct to Dec) 2019. There was an increase in services output of 5.7% in Quarter 2 2021, having contracted by 2.1% in Quarter 1 (Jan to Mar) 2021. Services output is now 3.5% below Quarter 4 (Oct to Dec) 2019 levels.

The most recent data show the labour market continuing to recover. The number of payroll employees showed another monthly increase, up 182,000 to 28.9 million in July 2021.

However, it remains 201,000 below pre-coronavirus (COVID-19) pandemic levels. There were an estimated 953,000 job vacancies in May to July 2021, a record high, having grown by 290,000 compared with the previous quarter and 168,000 more than its pre-pandemic level (January to March 2020).

In the latest period (April to June 2021), there was a quarterly increase in the employment rate of 0.3% to 75.1%, and a decrease in the unemployment rate of 0.2 % to 4.7%. The economic inactivity rate is down 0.2% on the previous quarter, to 21.1%.

FRC Corporate Governance Research

The Financial Reporting Council (FRC) has published three reports which explore the provisions of the UK Corporate Governance Code on changes in remuneration reporting, workforce engagement and board diversity and effectiveness in FTSE 350 companies.

The UK Corporate Governance Code was first issued in 1992. It operates on the principle of 'comply or explain'. The Code sets out good practice covering issues such as board composition and effectiveness, the role of board committees, risk management, remuneration and relations with shareholders and wider stakeholders.

The FRC hopes that the Code’s provisions on Remuneration, Workforce Engagement and Board Diversity and Effectiveness will stimulate conversations in companies and ultimately lead to further improvements in corporate governance. The FRC will also consider the findings and will take them into account in any future reviews of the UK Corporate Governance Code. The key findings of the research suggest that there are improvements in terms of the quantity of information reported. However, findings also highlight lack of details on the application of the Code principles and provisions.

Latest PIMFA Press Releases

FCA Consumer Duty must be accompanied with clarity for firms and understanding of their business models PIMFA welcomes FCA proposals to streamline decision making PIMFA welcomes Government moves to

Latest PIMFA Press Coverage

Investors Chronicle: Investment trust portfolios: Looking for healthier returns

Professional Paraplanner: Two in five adults targeted by scammers

improve fraud reporting by replacing Action Fraud – but says action through the Online Safety Bill would be more effective Coalition of consumer groups, charities and industry bodies calls for inclusion of paid-for online advertising in Online Safety Bill PIMFA welcomes FCA business plan proposals to prevent harm arising in the market faster and more effectively

IFA Magazine: PIMFA’s Liz Field highlights unintended consequence of RDR | Ten Year Retrospective

IFA Magazine: More than 20 million have been targeted by financial scammers

FT Adviser: Will the FCA's proposals fix the FSCS levy?

Member meeting on proposed changes to UK PRIIPs regime

PIMFA are holding a member meeting on Tuesday 31 August (10.00 to 11.30) to discuss the FCA's proposals to amend the UK PRIIPs regime (FCA CP21/23), to outline the position that PIMFA has previously taken on the issues involved and to seek feedback from members on how we should respond.

If you are interested in attending, please contact Sarah McGuffick.

EVENTS & LEARNING

Diversity & Inclusion Awards Entries Close: 31 August | Event Date: 20 October 8 Categories 15 Judges ENTRY DEADLINE EXTENDED TO 31 AUGUST FREE to Enter CATEGORIES •

(Firm) Inclusive Talent Management Award (small firm 1-50 employees)

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(Firm) Inclusive Talent Management Award (small/medium firm 51-200 employees)

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(Firm) Inclusive Talent Management Award (medium firm 201-500 employees)

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(Firm) Inclusive Talent Management Award (large firm 501+ employees)

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(Individual) Rising Talent Award

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(Firm) Best D&I Initiative Award

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(Firm) Best Approach to Wellbeing Award

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(Individual) The Overall D&I Champion Award

Have you or your firm been involved in a diversity & inclusion initiative that you are particularly proud of? Would you like to highlight this work and gain recognition for you and your colleagues? If so, we encourage you to enter one or more of the 8 categories available at the PIMFA D&I Awards.

Find out more and start your entry

View upcoming PIMFA Events and Learning here.

FCA warns equity crowdfunding CEOs of consumers making 'highrisk' investments

The FCA has written to the CEOs of equity crowdfunding platforms to warn them that consumers are still making “inappropriate high-risk” investments despite the current marketing restrictions. The FCA wants to ensure crowdfunding firms promote investment

opportunities appropriately so that consumers can understand the risks posed by speculative and high-risk investments.

The FCA also wants to ensure that, in the event of failure, a firm can wind down in an orderly manner by having an effective wind down plan and holding adequate financial resources. “As CEO, you are responsible for the conduct of your firm as a whole. We expect you to ensure that there is clear accountability within your senior management team for addressing the issues set out in this letter and, where relevant, sharing the contents of this letter with any of your Appointed Representatives. We see the use of high-quality data as fundamental to our regulatory strategy and we expect you to maintain appropriate systems and controls to facilitate the production and reporting of high-quality data on a timely basis,” . “It is important that your customers understand the risks they will be exposed to by the investments your firm promotes and the risks from how they have been categorised by your firm,” wrote Debbie Gupta, Director of consumer investments supervision at the FCA.

PIMFA's Consultation Responses

PIMFA’s latest Consultation Response is to the FCA's CP21/13: a new Consumer Duty.

Read this and all other PIMFA consultation papers here.

Find Out More About PIMFA ...

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