PIMFA Weekly News Bulletin - 4 September 2020

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PIMFA WEEKLY NEWS BULLETIN | 4 September 2020 Welcome to your Weekly PIMFA Bulletin Grab a coffee and take 10 minutes to read this week's highlights and key issues affecting you and your firm

WE ARE IN THIS TOGETHER Dear Nigel,

We hope you and your loved ones are safe and well during this difficult time. In addition to the latest industry news, Bulletin contains information on the impact of the virus and other key issues PIMFA are working on for our members. We remain committed to representing our members and providing as much useful information as possible during this difficult time and if there is anything we can help you with, please contact us at enquiries@pimfa.co.uk.

Best wishes The Team at PIMFA

COVID-19 & What's happening in PIMFA

Brexit: UK Readiness

Although the UK formally left the EU on 31 January 2020, Brexit has not happened yet in an economic sense as the UK has continued to apply the EU laws during the transition period (which ends on 31 December 2020). Over the past months Brexit has been pushed down firms' list of priorities as they had to focus on numerous practical issues caused by the coronavirus pandemic. As we get closer to the end of the transition period, firms will again be facing a Brexit deadline. It is important to bear in mind that, regardless of the outcome of the ongoing UK–EU negotiations on the terms of the future relationship, in the retail investment sector, passporting will be lost. No equivalence is available in our sector under any of the existing arrangements. Firms will need to decide how to access and operate on behalf of clients living in the EU when the UK is a third country post-Brexit transition.

In order to continue to service clients in the EU, firms will have to establish in an EU Member State and obtain authorisation from the local regulator to undertake business in that country. Alternatively, they can establish an authorised passporting entity anywhere in the EU to undertake investment business across the EU. Establishing an entity for business in one country, or one for EU-wide passporting, are two different things with different requirements and costs. Alternatives to the establishment approach are to merge with a firm that already has a presence in the EU, transfer clients to other firms and withdraw from the EU market, or seek to do business on a reverse solicitation basis.

Regarding the last option, firms need to investigate the situation and the attitude of the local regulator in specific Member States.

Please contact Maja Erceg with any queries.

Brexit: Negotiations

Brexit: EU Frustration

Michel Barnier, the EU’s Chief Negotiator,

There is a growing frustration in the EU

was a keynote speaker this week at a

over the lack of progress in the Brexit

webinar organised by Irish Institute of

negotiations over the summer months.

International and European Affairs. He

The next couple of weeks will be crucial if

spoke on the Brexit state of play, the

the two sides want to make a

obstacles on the road to an agreement

breakthrough on the two important issues

and the key issues that will shape the

that have stalled the talks – fisheries and

relationship in the years to come. Barnier

state aid. The EU claims it has engaged

said that the EU wants a close relationship

with the UK’s red lines and is working on

with the UK “provided conditions are right”

them and accuses the UK of not doing the

but “the UK has not engaged

same regarding the EU’s red lines. The

constructively on those conditions”. He is

EU also says that the UK has neither put

worried about the lack of progress on level

forward its proposals for state aid nor

playing field, fisheries and governance

tabled new legal text regarding the area of

and warned of the risk of a no deal.

fisheries.

“Without a long-term and sustainable solution on fisheries, there will be no new

The UK is reluctant to cede any control

partnership with the UK”, he added.

over state aid policy and says it will not work on such an important issue to the

Barnier accused London of selfish

timetable dictated by the EU. As for the

obstinance, explaining that the UK wants

fisheries, the UK would like full access to

a clean break from the EU and at the

the Single Market to sell its fish, while the

same time, seeks continuity in some

EU wants full access for its boats to the

areas. While an agreement is still

UK fishing waters. UK Government says

Barnier’s goal, it is not at any cost. "We

this will not be possible because, after the

will not sacrifice — never sacrifice — the

transition period, the UK will be an

EU's long-term economic and political

independent coastal state. The two sides

interests for the sole benefit of the UK”,

continued to speak this week in

Barnier said. He added that the EU has

preparation for the next round which is

shown flexibility around the UK’s red lines,

due to start on September 7.

particularly regarding the role of the European Court of Justice, and added it is time for the UK to reciprocate. Barnier

Brexit: European unity

also reiterated that an agreement has to be reached by the end of October for the

The EU is maintaining its unity in the

new partnership to be in place at the

Brexit talks and rallying behind its Chief

beginning of next year.

Brexit Negotiator, Michel Barnier. To

emphasise this point, German Economy Homes England: Short Survey

Minister Peter Altmaier, whose country holds the rotating EU Presidency, warned

The Help to Buy team at Homes England

the UK not to bet on the EU to “fall apart.”

are looking for Mortgage Advisers to complete a 10-minute survey so they can

Speaking to the European Parliament’s

understand your experience of the Help to

Committee on International Trade, he said

Buy: Equity Loan application process.

the EU ”will be closing ranks in an act of great European solidarity, and nobody

A new Help to Buy: Equity Loan scheme

should hope that the EU will quarrel about

will be available from 1 April 2021. At the

this question, that it will fall apart, that it

end of the survey you will have the

will not be united.”

opportunity to sign up to receive further information on the new scheme. The closing date for the survey is Friday 18th

25% OFF ALL HARRIMAN BOOKS - FOR PIMFA MEMBERS ONLY

September.

Complete the survey here.

In partnership with Harriman House, PIMFA is delighted to offer members an exclusive 25% discount on high quality

Access webinars on demand

books from over 300+ titles in print, eBook and audio form.

Acess the PIMFA learning library and the members only COVID-19 web area to

To order, please click here.

watch or download webinars on topics such as women in wealth, wellbeing, cyber-resilience, compliance, ESG, vulnerable clients, Brexit, operational resilience etc.

Click here if you have forgotten your password or to create a user account.

Work and Pensions Select Committee evidence

PIMFA will be giving oral evidence to the Work and Pensions Select Committee in the coming weeks in support of their inquiry into pension freedoms. We would value any input from firms on what you have seen with respect to Pension Scams – particularly those arising as a direct result of COVID-19.

Please contact Simon Harrington to discuss this further.

LATEST PIMFA BLOGS & PRESS RELEASES

•

PIMFA welcomes Work and Pensions Select Committee investigation into pension scams and wider inquiry into pension freedoms

•

PIMFA welcomes Government consultation into greater regulatory oversight of financial promotions

•

PIMFA supports TheCityUK report on recapitalising businesses post-Covid19

•

PIMFA welcomes appointment of Nikhil Rathi as Chief Executive of the Financial Conduct Authority

•

PIMFA welcomes proposed permanent FCA marketing ban for mini-bonds

•

Blog: ESG and Covid 19

EVENTS & LEARNING

PIMFA Training CASS CLIENT MONEY: What you should know in 2020.

Identify weaknesses in your firms' client asset systems to prevent causing serious financial detriment to customers and counterparties.

The aim of this online course is to support you to:

•

Stay up to date and compliant with current CASS rules

•

Recognise the FCA’s concerns regarding Client Assets

•

Clarify your firm’s responsibilities when handling client money and safe custody assets

•

Design effective controls and governance to reduce the possibility of regulatory and reputational damage

•

Create and maintain robust oversight arrangements of client assets

•

And more...

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

PIMFA Webinar THE POWER OF POISE, HOW TO DEVELOP CORE CONFIDENCE

The Imposter Syndrome is now recognised as a common experience amongst professionals. Even though their skills and talents are recognised by others, they can struggle to see the value that they bring and fear being found out as a fraud.

Join Caroline Holt, the UK’s go-to expert on the Imposter Syndrome, on the 8th of September 2020 from 12.00 to 13.00 for an exploration of confidence – what it is and what it isn’t.

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

PIMFA Event VIRTUAL ASSOCIATE MEMBERS UPDATE

We will explore topics such as regulation, operations, Brexit, financial crime, ESG and others and provide an opportunity to discuss with PIMFA staff specific issues important to the membership.

This event also showcases our ongoing events and publications programme providing examples of how Associates can engage with Members and maximise the value they receive from their membership.

This event is FREE for PIMFA Associate Members.

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

The PIMFA ESG Academy, which starts on 15th September 2020, is a self-paced online programme that is definitely NOT your traditional online class! As you learn at your own pace and in your own time, you will have access to an evergreen library of ESG content that you can engage and interact with on your tablet, computer and mobile – all free for PIMFA members!

The PIMFA ESG Academy, supported by Morningstar, is our response to the growing demands by advisers for an immersive, engaging, CPD-approved learning experience that supports them in making the most of the growing ESG opportunity by having more effective ESG conversations with their clients.

Please click here to find out more.

PIMFA are delighted to be partnering with WLTH 2020. The event takes place entirely online on 15-16 September.

As a PIMFA member, we are delighted to be able to offer you a FREE ticket to the event.

You can book your place here.

PIMFA IN THE PRESS

FT Adviser: Why the FCA's guidance on vulnerable clients doesn't help advisers FT Adviser: Tributes pour in for ‘engaging’ and ‘fun’ Jack McVitie City AM: Share and share alike: electronically?

Professional Adviser: Anthony Rafferty; Keeping your clients' information secure FT Adviser: FCA wants evidence of 'informed decisions' in DB advice FT Adviser: The FCA wants advisers to be more resilient

LATEST PIMFA CONSULTATION RESPONSES

PIMFA’s latest consultation response is to HM Treasury regarding their consultation on expanding the Dormant Assets scheme

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

WHAT'S HAPPENING IN OUR INDUSTRY

FCA lists unauthorised firms trading in UK

The FCA has issued press releases identifying individual firms who have been providing financial services or products in the UK without their authorisation, some of which knowingly run investment scams which target domestic consumers.

They strongly advise you to only deal with financial firms that are authorised by them, and to check the Financial Services Register to ensure that they are. The Register has information on firms and individuals that are, or have been, regulated by the FCA.

The press releases can be found here.

Wirecard announces that it is winding-down its FCA-regulated business

On 28 August 2020, Wirecard announced that it was intending to wind-down its FCAregulated business. The business will continue to trade while alternative arrangements are being made with its card providers. Customers should contact their card provider with any queries. We are working closely with Wirecard throughout this process to ensure that its customers are treated fairly.

This action has followed ongoing events in Germany concerning Wirecard’s parent company, Wirecard AG, and previous action from the FCA. We remain focused on ensuring that any action by the firm is taken in the best interests of customers, without compromising on consumer protection.

More information can be found here.

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