PIMFA Weekly News Bulletin - 30 May 2023

View in browser Featured: PIMFA Report - ESG Investing Approaches

PIMFA Weekly News Bulletin PRESS RELEASES

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PIMFA WEEKLY NEWS BULLETIN 30 May 2023

PIMFA Report – ESG Investing Approaches PIMFA, in collaboration with Alpha FMC, have conducted a survey of the membership to gain insights into firm's ESG investing approaches and client and investor sentiment, the results of which have been captured in a PIMFA member only report containing a plethora of useful insights.

The Report can be found here.

ESG - PIMFA Member Support In addition to the above report, we have also launched a new Sustainable Finance and ESG investing microsite which contains: •

PIMFA thought leadership

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Updates, overviews and insights on regulatory work being undertaken nationally and internationally

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Info on the Task Force on Climate-Related Financial Disclosures (TCFD)

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Info on Sustainability Disclosure Requirements (SDR)

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Info on the Government’s Green Finance Strategy

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Info on the FCA’s ESG strategy

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Details on how to get involved in PIMFA’s Sustainable Finance Working Group

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Useful downloadable resources

Visit the microsite here.

PIMFA responds to FCA DP23/2: Updating and improving the UK regime for asset management “PIMFA believes that it is premature for the FCA to be outlining proposals for major changes to specific areas of regulation that are likely to see significant improvements in consumer experience as the four Consumer Outcomes take effect.

As well as imposing substantial costs on industry (and, ultimately, consumers), a perpetual programme of major regulatory change distracts firms from their core business of providing the best possible products and services for consumers and also makes them query whether the FCA is effectively downplaying the benefits likely to result from the Consumer Duty before it is even fully implemented.”

The full response is available here.

FSCS: Latest Outlook update The Financial Services Compensation Scheme (FSCS) has published its latest Outlook update, with revised compensation and levy forecasts for 2023/24. The forecast levy has reduced to £270m due to an increased surplus from the 2022/23 levy being carried over into the following year, and an overall decrease to the compensation forecast for 2023/24 of £121m.

PIMFA welcomes the reduction in the FSCS levy but has urged the Regulator and the Treasury to consider a longer-term solution to the compensation framework. We have renewed our call for the Treasury to recognise the burden placed on well-run firms and proposed a “polluter-pay” model which diverts FCA fines that are currently going to the Exchequer Consolidation Fund to the FSCS instead.

Access PIMFA’s press statement on the FSCS Levy Forecast here.

Access FSCS Outlook May 2023 here.

FCA – Implementing the Future Regulatory Framework Review The FCA has set out seven provisional drivers of productivity contributing to international competitiveness and growth as a part of implementing the outcomes of the Future Regulatory Framework Review. Among them, the FCA will lead on operational efficiency and proportionate regulation, while the UK financial market shall be driven by effective competition, innovation, trust and reputation in the UK, market stability and effectiveness, and playing a role in international markets.

At the same time, the FCA will add metrics to measure their performance against the new secondary objective and will seek to consider inputs to the Treasury’s call for proposals – Financial Services Regulation: Measuring Success.

Please contact Simon Harrington should members wish to express their views on this.

Access the full release on the FCA Website.

FCA research – Dating vs Investing?

The FCA has published findings from new research surveying 1,000 young investors who also use online dating platforms. It shows that young investors think longer-term and are less influenced by social media when dating compared to their investing behaviours.

The findings also briefly explore young investors’ mindset about quick returns on investing versus when choosing a lifetime partner, and their comparative performance on how they spot and act on the red flags in dating and in investing. Lastly, the findings shed a light on the role of social media and online presence when young people consider investing.

Access the full release on the FCA Website.

FCA authorisation process The FCA published a new home webpage on authorisation (e.g. how to apply for authorisation, support for newly authorised firms) and links to: •

how to apply for authorisations (updated)

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Preparing your firm’s financial information

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Authorisations and registration application fees (updated)

Policy Recommendations for Crypto and Digital Asset Markets IOSCO has set out how clients should be protected and how crypto trading should meet the standards that apply in public markets.

The International Organization of Securities Commissions (IOSCO) has published a consultation paper (CP) on Policy Recommendations for Crypto and Digital Asset Markets. IOSCO sets out 18 policy recommendations covering six key areas, consistent with IOSCO Standards, including market manipulation, insider trading and fraud, cross-border risks and regulatory cooperation, custody and client asset protection, retail access, suitability, distribution and operational and technological risk.

Comments on the consultation paper should be sent to cryptoassetsconsultation@iosco.org on or before 31 July 2023.

Central bank digital currencies On 25 May 2023, a group of central banks, together with the Bank for International Settlements, published a paper on central bank digital currencies (CBDC): ongoing policy perspectives.

Key messages: •

Development of CBDC work requires careful consideration and engagement with a wide range of stakeholders, including the private sector and legislators.

•

To successfully meet its public policy objectives, a CBDC ecosystem should allow a wide range of private and public stakeholders to participate and, in doing so, deliver services which benefit end users.

•

The complex design questions and the potential risks arising from the implementation of any CBDC require careful consideration

•

The evolving payments landscape requires central banks to give some consideration to how CBDCs may be used for wholesale and cross-border use cases

Market Abuse Regulation

JMLSG Consultations - amendments relating to discrepancy reporting and

Associate member, SIX, have shared thought

mitigation of impersonation risk

leadership on Market Abuse Regulation. Members can access articles and a

The latest JMLSG consultation has now been

product overview of SIX’s trade surveillance

published. The return date for comments is 26th

module via the links below:

June. Links to the news and consultation pages are as follows:

•

Homepage for SIX’s SICAM Surveillance Solution

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LinkedIn Post on Trade Surveillance Software SICAM Global Launch

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JMLSG Guidance Part I can be found here.

LinkedIn Post on Transaction Modelling and Market Abuse

JMLSG Consultation pages can be read here.

Career Intelligence Academy – New, free audio programme Creating a career path as unique as you are, whether you're employed, working for yourself, or just starting out, means navigating a lot of uncertainty & change. One of the key challenges many people face is knowing what they really want in the context of their life overall, and how to move in that direction from wherever they are today.

21 Lines of Inquiry is a brand new audio programme, hosted by Anita Rolls, which has been created specifically to help you start exploring this for yourself.

All that is required of you is 10 mins a day for 21 days (starting 1 June) to listen to the audio of the day and reflect on the question posed.

Sign up here.

PIMFA is proud to be partnering with the Morningstar Investment Conference London this year To join us on 4 July register here.

The discounted early-bird price to attend is £19, thereafter £99. Register now to secure your place and save £80 if you register before 31st May 2023!

PRESS RELEASES

PRESS COVERAGE

FCA proposals to align rules for

Citywire Wealth Manager: Pimfa

fund managers and...

warns FCA proposals pose...

Wealth managers and advisers

Professional Adviser: FCA could

want more support in...

make firms' ability to offer MPS...

PIMFA welcomes reduction in

Money Marketing: Advice firms

FSCS levy but a longer term...

want more support in...

FT Adviser: FSCS levy cut only

READ MORE

‘short-term respite’ for firms...

The Wealth Net: Wealth managers want support...

READ MORE

EVENTS & LEARNING

6 JUN

PIMFA WEBINAR: CYBER RISK MANAGEMENT – HOW

6

COMPLACENCY CAN RUIN

JUN

YOUR REPUTATION

PIMFA WEBINAR: HOW FIRMS CAN SUCCESSFULLY TAKE THE WORRY, FRUSTRATION AND STRESS OUT OF THEIR CASS AUDIT

Sign up | Info

Sign up | Info

T&C Under Consumer Duty Training What you need to know

8 June | 13:30 - 15:30 By the end of the session, you’ll be able to:

•

Update and reposition your approach to T&C appropriate to the new Consumer Duty

•

Analyse the changes that are needed to support a consumer outcome approach rather than one that is compliance driven

•

Confidently answer challenges on how your T&C framework supports clients pursue their financial objectives

•

Demonstrate to stakeholders including the board, internal audit, and the regulator how your approach to people competence and capability management achieves ‘good customer outcomes

REGISTER

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