Featured: Cyber-Security TechSprint , Accelerated Settlement & T+1
30 September 2024
PRESS RELEASES ABOUT PIMFA CONSUMER DUTY WEALTHTECH
DEADLINE NOW EXTENDED TO TUESDAY 15TH OCTOBER
PIMFA WealthTech: New Tech Sprint on Strengthening Cyber Security Defences
PIMFA WealthTech has launched it latest Tech Sprint focusing on strengthening the industry's cyber security defences. With the launch of this Tech Sprint comes an invitation for FinTech firms to participate in this latest challenge by identifying and evaluating a range of effective technology solutions which can be deployed to strengthen firms’ cyber security defences.
Specifically, the question being posed to them states: “how can a specialist cyber security Fintech provide unique and additional value to support wealth managers in preventing, detecting, responding and recovering from cyber security attacks?”
Interested FinTechs can participate by registering online and due to demand the deadline has now been extended to Tuesday 15th October 2024 at 5pm.
Read the full press release here
New PIMFA Guest Blog: Avoiding Stress-Related Errors
The pressured environment of the wealth management sector can be a breeding ground for stress. Long hours, demanding clients and high-stakes cases take a toll on mental wellbeing, and the consequences of ignoring this issue can go far beyond employee health.
Here, Lucie Gosling-Myers, Senior Client Development Manager at Lockton, discusses how, by taking steps to manage stress and prioritise employee wellbeing, wealth management firms can not only create a happier and healthier workforce but also improve their colleague retention rates, risk profile and, potentially, their bottom line.
The blog can be read here
Read the latest PIMFA magazine containing thought leadership articles written by PIMFA member and associate member firms* on current industry issues and hot topics.
View the full magazine here.
PIMFA Regulatory Forum: Recording 24th September
The September Regulatory Forum has now been posted on the PIMFA website here, the recording includes:
• FCA Call for Input – FCA Requirements Following Consumer Duty
• FCA MS24/1.1: Pure Protection Market Study
• Autumn Budget 2024
• PIMFA Vulnerable Customers Guide and Launch
• FCA SDR temporary measures for firms on ‘naming and marketing’
If you are from a PIMFA member or associate firm and would like to be added to the distribution list to attend the next Regulatory Forum on Wednesday 23 October from 3pm to 4pm please contact Heidi Bryant.
PIMFA’s Alex Roberts Speaks at the FT Financial Advice Forum
Alexandra Roberts, Head of Regulatory Policy & Compliance at PIMFA, joined other panellists at the FT Financial Advice Forum to discuss the impacts of consumer duty and how it is shaping the industry, ongoing challenges for firms and the Advice Guidance Boundary Review and the extent to which it may address the advice gap.
You can read more about the event here
Accelerated Settlement Taskforce Technical Group: Draft Recommendations Report and Consultation
The Accelerated Settlement Taskforce Technical Group has today published its draft recommendations report and consultation, for consideration by all participants in the UK investment market. PIMFA will be reviewing the report and responding to the consultation questions.
The consultation closes at the end of October, and if you would like to contribute to PIMFA's response, please contact Kevin Sloane.
Accelerated Settlement in the UK Technical Group Webinar: 17 October 2024 2pm - 5pm
On Thursday 17 October, Forvis Mazars will be hosting an Accelerated Settlement Technical Group (ASTG) webinar, at which the ASTG Chair and Technical Group leads will be presenting their Interim Report and recommendations on the next steps for Accelerated Settlement and the UK move to T+1, which is to be completed by no later than the end of 2027.
To register for this webinar, please visit here.
The Financial Conduct Authority (FCA) SDR for Portfolio Management to be Delayed
The FCA has confirmed it intends to publish a Policy Statement on extending SDR to portfolio management and further information about implementation in Q2 2025. The regulator is carefully considering the feedback to the consultation to ensure that the regime protects consumers but also recognises and takes account of any practical challenges that firms may have.
The FCA says it is aware that it is taking longer than expected for some asset managers to comply with the SDR and labelling regime and of the potential impact this might have on portfolio managers. This has been highlighted in the consultation feedback the FCA received and industry engagement.
The FCA has published a speech by Therese Chambers, Joint Executive Director of Enforcement and Market Oversight, key messages included:
• The FCA noted that reducing and preventing serious harm from financial crime is a focus of the current strategy and will remain a significant pillar.
• The FCA’s approach to enforcement is being adapted to meet evolving threats and maximise the deterrent effect and the FCA will continue to investigate potential misconduct by individuals and firms.
• The important role of collaboration with both firms and other enforcement agencies was noted.
• The role of data analytics and technology in the FCA’s work, such as the Cyber Forensics Unit, were also noted.
• An update on the FCA's 'name and shame' proposals advised that the regulator had received more than 130 responses to Consultation Paper 24/2 Our Enforcement Guide and publicising enforcement investigations–a new approach (CP24/2).
• Ms Chambers stated that the overall case for more transparency around FCA investigations 'remains strong'.
• The FCA advised further detail on how the transparency proposals could work in practice will be published along with case studies.
The FCA advised further detail on how the transparency proposals could work in practice will be published along with case studies.
Read the full speech here.
FCA Speech: 'Like London's Roman Wall, Financial Rules Must Adapt'
The FCA has published a speech by Sarah Pritchard, Executive Director, Markets and Executive Director, International, in it she says:
• That FCA will consult on a new regulatory regime for retail investors in the autumn (with the aim of finalising rules in 2025) to design flexible and proportionate regulation that supports retail investors to buy products that suit their needs, noting that confidence to invest was created by having easy-to-understand, clear, reliable information on which to make decisions.
• The FCA are keen to hear the views of financial advisers across the UK, as the shifts being made are fundamentally about an adjustment to risk appetite.
• The implementation of Consumer Duty highlighted the FCA shift in approach to regulating financial advisers to a less prescriptive and more outcomes-focused approach, which gives firms scope for flexibility and innovation in deciding how best to serve their clients.
• The regulator spoke about the advice-guidance boundary review, stating challenges such as building in appropriate consumer protections and balancing outcomesbased regulation with the need for certainty.
Read the full speech here
Bank of England (BoE) Speech: 'The need for trusted AI models'
The BoE has published a speech by James Benford (Executive Director for Data and Analytics Transformation and Chief Data Officer), key messages include:
• Modernising how data is managed and used must be accelerated
• Central banks need to be alert to gaps being exposed in existing frameworks given the increasing use of AI, including ongoing work to embed ethical consideration, appropriate governance, and stress testing into systems
• The BoE has determined that there are several dimensions that need to be satisfied for AI models to be TRUSTED (Targeted, Reliable, Understood, Secure, stress-Tested, Ethical and Durable) to inform decision-making at scale and effectively underpin the BoE's monetary policy and financial stability remits
Read the full speech here.
Bank of England (BoE): Artificial Intelligence (AI) Consortium
The BoE is establishing an AI Consortium to provide a platform for public-private engagement to gain input on the capabilities, development, deployment and use of AI in UK financial services.
The aim of this engagement is to:
• Identify how AI is or could be used in financial services;
• Discuss the benefits, risks and challenges arising from the use of AI; and
• Inform the BoE's approaches to addressing risks and challenges, and to promoting the safe adoption of AI.
Alongside publication of the terms of reference, the BoE has also published a call for interest for membership – applications should be submitted by 8 November 2024.
Access further details about the consortium here
FCA Digital Sandbox: Spring Expo
The FCA has updated its Digital Sandbox page to report on its inaugural Digital Sandbox Spring Expo.
The Expo showcased 13 innovative projects from the Digital Sandbox service, spanning four key themes: financial inclusion; RegTech; data and enablement; and fraud detection.
The FCA Innovation Services Autumn Expo will take place on 4 November 2024 at the FCA's London office and it will showcase projects including the Digital Sandbox, Regulatory Sandbox, and Innovation Pathways.
The FCA innovation projects overview can be accessed here.
Following the consultation in Primary Market Bulletin No. 48, the FCA have made several amendments and the addition of one new technical note: Sponsor’s confirmation in relation to modified transfer of listing category (Primary Market / TN / 721.1)
Existing technical notes that have been amended include Primary Market / TN / 707.2, Primary Market / TN / 708.4, and Primary Market / TN / 633.3.
Access the full list of amendments here
FCA Practitioner Panel: Response to Call for Information on Big Tech and Digital Wallets
The FCA Practitioner Panel has published its response to the FCA's Call for information (CfI) on big tech and digital wallets, noting:
• That digital wallets are becoming a critical part of payments infrastructure
• The implications of the prevalence of big tech
• The need for the regulator to provide consumers with appropriate understanding, protection, and choice
• Clarification of proper apportionment of responsibility when things go wrong between digital wallet providers and individual payment providers would be welcome
Access the full response here.
FCA Consultation Paper 24/20: Changes to the Safeguarding Regime for Payments and EMoney Firms
The FCA is consulting on enhancing safeguarding rules for payments and e-money firms. These proposals will adopt a Client Assets (CASS) style regime where relevant funds and assets are held on trust for consumers, marking a significant regulatory shift that payments firms must accommodate by the middle of next year.
The consultation closes on 17 December 2024 and the FCA aim to publish final interim rules with an accompanying policy statement within the first 6 months of 2025.
Access the consultation paper here.
The FCA has published retirement income market data for 2023-2024, with key findings set out:
• Total number of pension plans accessed for the first time in 2023/24 increased by 19.7% to 885,455 compared to 2022/23 (739,652).
• Sales of annuities saw the biggest increase from 59,163 in 2022/23 to 82,061 in 2023/24 (38.7%).
• Sales of drawdown increased by 27.9% from 218,183 in 2022/23 to 278,977 in 2023/24.
• The overall value of money being withdrawn from pension pots increased to £52,152m in 2023/24 from £43,233m in 2022/23. This is an increase of 20.6%.
• Some 30.9% of pension plans accessed for the first time in 2023/24 were accessed by plan holders who took regulated advice (down from 32.9 % in 2022/23).
• The number of DB to DC transfers continued to fall from 18,080 in 2022/23 to 7,181 in 2023/24.
Access the publication here.
PRESS RELEASES
PIMFA WealthTech launches new Tech Sprint on strengthening the industry's cyber security defences
PIMFA sets out 5-year agenda for government to create a UK Culture of Thriving Financial Health
PIMFA calls on next Government to create a more attractive environment for investors after General Election
Citywire Wealth Manager: Lack of clarity still an issue as DFMs get SDR extension
FT Adviser: 'Tax reforms should focus on stability, competitiveness and practicality'
Professional Adviser: Why claims management companies shouldn't escape the wrath of regulators
