PIMFA Weekly News Bulletin - 25 July 2022

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PIMFA WEEKLY NEWS BULLETIN | 25 July 2022 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 releases new Future of Supervision paper: “Together We Grow”

In an update to its Future of Supervision paper from 2020, PIMFA has called for further improvements from the Financial Conduct Authority (FCA) in the way it supervises regulated firms. This new paper, entitled “Together we Grow”, applauds some improvements from the FCA, such as an increased outward focus on the financial sector’s resilience and an increased inward focus on its own resilience, in the form of plans to improve and update its processes, including investing in enhanced data solutions.

However, several issues remain such as the continually rising cost of the Financial Services Compensation Scheme (FSCS) that is leaving thousands of people to fight to get their money back and is ultimately leaving well run firms to compensate customers of failed financial institutions.

If you have any questions, or require any further information, please don’t hesitate to get in touch with us at info@pimfa.co.uk.

Government publishes Financial Services and Markets Bill

The government has published its Financial Services and Markets Bill. This landmark piece of legislation implements the outcomes of the Future Regulatory Framework Review (FRF), thus revoking retained EU law relating to financial services and enabling HM Treasury and UK regulators to replace it with legislation designed specifically for UK markets. Whilst this is the main focus of the Bill, it also introduces a number of other powers.

We are delighted the Government has taken on board industry concerns and note a requirement for the FCA, PRA and Payment Services Regulator to publish statements of policy on how they conduct costs benefit analysis

PIMFA will be engaging with this Bill throughout its passage and are already considering a number of amendments which fit with membership priorities. The second reading of the Bill will take place after recess on 7 September.

If you have any input or queries, please contact Simon Harrington.

PAC reports on the British Steel Pension Scheme

The Public Accounts Committee has published its report investigating the British Steel Pension Scheme. The report finds that whilst advisers failed to provide suitable advice to BSPS members, the role of the Regulator in protecting BSPS members from poor outcomes was seriously wanting. The PAC report that the FCA was consistently behind the curve in responding to unsuitable transfer advice despite being aware of the potential risks to consumers.

PIMFA has given evidence to the PAC in support of their inquiry – both in person and in writing. We were pleased to see that a number of our observations are shared by the PAC,

in particular the obvious disconnect between the way in which the freedoms and regulated and the original intent of the policy as set out by government.

We are continuing to engage with the FCA on the issue of BSPS redress and have previously called for BSPS members to compensated through the provision of a guaranteed income, given the importance the FCA has placed on that when assessing suitability.

Please contact Simon Harrington with any queries.

PIMFA Regulatory Forum

This monthly forum provides updates on regulatory hot topics from the PIMFA team and select associates, provide an opportunity to share best practice and get the latest intelligence on policy matters. The next Virtual Regulatory Forum is on Tuesday 28th June between 3pm-4pm.

Topic will include an Update on Consumer Duty, an Update on Vulnerable Customers, The Data Reform Bill and the FOS Funding Review.

Attendance of the PIMFA Forums is open to any representatives from Member and Associates firms, if you or any of your colleagues would like to attend next weeks or future forums, please email Heidi Bryant.

PIMFA ESG ACADEMY | REGISTER FREE

The PIMFA ESG Academy for Wealth Managers is a FREE programme designed specifically to give you the ESG knowledge and confidence you need to take advantage of the rising demand for sustainable investment products, and keep pace with the rapidly changing ESG landscape.

The programme takes place entirely online and you can complete the modules in your own time and at your own pace.

Click here to find out more and register FREE!

Latest PIMFA Press Release

Latest PIMFA Press Coverage

PIMFA announces shortlist for second

Corporate Adviser: PIMFA renews call for

Diversity & Inclusion Awards

PPF to be use in BSPS compensation

PIMFA updates Future of Supervision

The Wealth Net: PIMFA calls on FCA to

paper and calls for more improvements

improve supervision of firms

from the Financial Conduct Authority FT Adviser: Pimfa calls for FCA PIMFA calls on Government and

improvements to reduce FSCS costs

Regulator to widen access to advice to more UK consumers

Professional Pensions: PPF should not pay out for British Steel, industry says

PIMFA calls for British Steel Pension

scheme members to be compensated

Citywire New Model Adviser: Pimfa

through the Pension Protection Fund

Diversity & Inclusion Awards 2022: The shortlists

PIMFA Events

PIMFA Virtual Roundtable OVERCOMING MISCONCEPTIONS AND FINDING VALUE IN PROPERTY INVESTING

21 September | 09:00-10:30 This PIMFA Breakfast Roundtable event in partnership with TIME Investments will be discussing five of the common misconceptions of investing in property and explains why commercial real estate investment is a valuable addition to a portfolio for today’s long-term investors.

For more information, and to register please click here.

PIMFA Compliance Conference 2022 EARLY BIRD TICKETS AVAILABLE UNTIL 15 JULY

Tickets available online and in person 28 September | 08:30-16:30

Hear from leading industry experts on the key issues facing compliance professionals in the investment management and financial advice world.

For more information, and to register please click here.

PIMFA Member-Only Roundtable NAVIGATING DIGITAL TRANSFORMATION IN WEALTH

13 October | 08:30-11:00 This PIMFA Breakfast Roundtable event in partnership with BNY Mellon | Pershing will be discussing the digital transformation journey in wealth management.

For more information, and to register please click here.

View other upcoming PIMFA Events & Learning here

The Secondary Capital Raising Review

The UK Secondary Capital Raising Review July 2022 (SCRR) was published on 19 July.

The recommendations aim to reform and update the secondary capital raising regime, making it more inclusive and efficient for firms to finance their businesses through public capital markets.

PIMFA are delighted to note the review recognises our position by explicitly noting it is important that retail investors are involved as fully as possible in all types of secondary fundraisings, including placings.

An overview of the 21 recommendations can be found on pages 11-20 of the SCRR report.

In response to the report, the FCA published a statement: The FCA welcomes the Secondary Capital Raising Review Report.

Online safety and competition in digital markets: a joint statement from the CMA and Ofcom

A joint statement on Online safety and competition in digital markets (developed by the Digital Regulation Co-operation with the CMA and Ofcom’s co-members, the FCA & ICO) was published on 14 July.

The statement refers to: •

why safety and competition concerns arise online/why these can sometimes interact in

digital markets •

how competition and online safety interventions may interact and the implications for

policy design •

how the CMA and Ofcom will take account of these interactions to deliver coherent

regulation in digital markets

Financial Services Future Regulatory Framework Review

HM Treasury has published a response to the feedback received to its second consultation on the FRF Review, issued in November 2021.

As well as outlining stakeholder reactions to its proposals, the paper confirms that the Government will proceed as planned, with the FRF Review being implemented via the Financial Services and Markets Bill introduced into Parliament on 20 July.

The response can be read in full here.

Mansion House Speech by the Chancellor of the Exchequer

The Chancellor’s speech on 19th July 2022 noted how government is delivering on its vision for an open, green, and technologically advanced financial services sector that is globally competitive. There are three priorities in progress

1.

Controlling inflation

2.

Creating conditions for a private sector recovery (Government encourages enterprise

– allowing businesses to invest, innovate, and create jobs. Government is also delivering to promote Skills, infrastructure, innovation which makes tangible differences to the public

and to businesses.

3.

Making financial and professional services thrive, and promoting government

partnership with the industry

An important part of this agenda is the Financial Services and Markets Bill, introduced on 20th July.

The speech can be read in full here.

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Bulletin is just one of the many insights and publications PIMFA produces on the latest industry news and issues - most of which are accessible to PIMFA members only.

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