PIMFA Weekly News Bulletin - 7 March 2022

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PIMFA WEEKLY NEWS BULLETIN | 7 March 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.

Events in Ukraine – Impact on Financial Markets

The FCA has updated their statement on events in Ukraine.

Russia’s invasion of Ukraine is having a significant impact on financial markets. Both the events themselves, and the wide range of financial sanctions imposed in response on Russia, Russian individuals and Russian business by numerous jurisdictions worldwide will have multiple impacts on companies with securities admitted to UK markets. During this period, issuers of securities admitted to UK trading venues are reminded of their disclosure obligations under the UK Market Abuse Regulation (MAR).

Companies in scope of MAR are required to fulfil their obligations to disclose inside information as soon as possible unless they have a valid reason under the regulation to delay disclosure. This includes continuing to assess carefully what information constitutes inside information, recognising that both the invasion, and responses to it by governments globally, may alter the nature of information that is material to a business’ assets, operations and prospects.

Companies assessing the effect of financial sanctions in all relevant jurisdictions should, where necessary, take legal advice.

Economic Crime (Transparency and Enforcement) Bill

Following Russia’s invasion of Ukraine, the UK government has brought forward the Economic Crime (Transparency and Enforcement) Bill to tackle the flow of ‘dirty money’ into the UK and to strengthen the sanction package against Russia.

This Bill specifically deals with only certain aspects of the anticipated Economic Crime Bill and further legislation dealing with the other issues (Companies House reform, SARs reform and reform of corporate liability) is expected to be brought forward later in the year.

The main reforms contained in the draft Bill are: •

The creation of a register of oversea entities and their beneficial owners to be held at

Companies House •

Measures to strengthen the system of “unexplained wealth orders” (bringing into scope

those who hold property under trust, expanding the definition of asset ‘holder’ so that individuals can’t hide behind shell companies, reducing the financial liabilities of pursuing such cases) •

Introducing a strict civil liability test for monetary penalties, rather than the current one

which requires firms to have knowledge or a ‘reasonable cause to suspect’ sanctions are being breached

You can read the Bill in full, together with the explanatory factsheets, here.

G7 Ministers and Central Bank Governors - 'Go Faster and Further' in Support of Ukraine

During the first meeting of G7 Finance Ministers and Central Bank Governors under the German Presidency, Chancellor Rishi Sunak pressed his colleagues from the G7 to go “faster and further” in support of Ukraine and for a coordinated approach on sanctions

implementation as the UK and its allies reduce their economic dependence on Russia.

Chancellor Sunak emphasised the importance of G7 unity as the UK continues to work with its allies to monitor the economic impact of the conflict and stand in solidarity with the Ukrainian people. On 1 March the UK announced, along with G7 partners, the imposition of new financial sanctions on the Central Bank of Russia, the Russian National Wealth Fund, and the Ministry of Finance.

The UK’s announcements with allies over the weekend, notably the sanctions on the Russian Central Bank and the commitment to remove sanctioned Russian financial institutions from the SWIFT financial system, already had a strong impact on Russia, as evidenced by market reactions. G7 Finance Ministers and Central Bank Governors also reiterated their commitment to supporting Ukraine financially, building on the $48 billion provided by international partners in financial support to Ukraine between 2014 and 2021.

This will continue in 2022 as the G7 stands united by Ukraine’s side.

Latest PIMFA Press Releases

Latest PIMFA Press Coverage

PIMFA urges Regulator to rethink its

Investment Week: PIMFA urges FCA to

approach to Appointed Representatives

use Barclays fines for FSCS levy

PIMFA’s Virtual Fest returns for third year

FT Adviser: FCA must look at the whole

as FCA’s Therese Chambers unveiled as

picture for FSCS reform

a keynote speaker Citywire New Model Adviser: ‘FCA Firms still need certainty and time to

reforms to AR regime will have detrimental

implement FCA’s Consumer Duty

impact on networks’

PIMFA adds Qwil Messenger as PIMFA

FT Adviser: Has abridged advice been a

Plus Partner in drive towards further

success?

technology partners LexisLibrary Financial Services: PIMFA PIMFA delighted to welcome Redmayne

announces return of Virtual Fest as FCA's

Bentley’s Nick Bettison to its Board

Therese Chambers unveiled as a keynote speaker

MyRegData becomes latest PIMFA Plus Partner

FT Adviser: Govt called to include paid advertising in online safety bill

PIMFA's Latest Consultation Responses

PIMFA’s latest Consultation Responses include: •

PIMFA's response to Improving the Appointed Representatives Regime

•

A New Consumer Duty – Feedback to CP21/3 and further consultation

•

Future Regulatory Framework Review Financial Services Strategy

•

DP 21/4: Sustainability Disclosure Requirements (SDR) and investment labels

Read these and all other PIMFA consultation papers here.

PIMFA Events

PLACES ARE FILLING FAST! We are now just a couple of weeks away from the Virtual Fest 2022, taking place over 2 weeks from 14 - 25 March entirely online.

Registration is open now, please click here to confirm your place.

We are delighted to announce that we will be welcoming Therese Chambers, Director of Consumer Investments from the FCA alongside speakers from the City of London Police, SRI Services, Mapped Marketing, Royal London, TIME Investments, Seccl and others.

Read more about the event.

PIMFA Learning

PIMFA TRAINING: MARKET ABUSE 2022 REFRESHER FOR WEALTH FIRMS 15 March | 9:30 - 11:30 The FCA expects all firms to have a deep understanding of their market abuse risk, and build control frameworks that are both proportionate and effective, however, recent market abuse reviews by consultancy firm Bovill in wealth firms indicate they are struggling to properly assess, understand and articulate the specific market abuse risks inherent in their business.

In this 2 hour interactive, online training course, leading consultants Bovill reveal where wealth firms are falling foul of regulatory expectations and what they need to do to implement effective policies and procedures to control market abuse risks posed by remote working.

Please click here to register.

View Upcoming PIMFA Events & Learning here

Partner Events

WOMEN & WEALTH FORUM | 15 March 2022 KBC’s unique global Forum will celebrate women wealth holders, wealth creators and wealth managers and discuss what main challenges these women face and how to overcome them.

Sessions will cover specific issues encountered by such groups of women as: entrepreneurs and owners of family businesses; next generation; newly divorced or widowed.

PIMFA Chief Executive, Liz Field will be chairing a session at the forum on philanthropy.

While the event is focused on women’s wealth, ALL professionals interested in current wealth management trends are welcome. To find out more about the forum, please click here.

PIMFA Members qualify for a 15% discount. Please use the code PIMFA when registering. You can register by clicking here.

18th ANNUAL AML & FINANCIAL CRIME SEMINAR 27 - 28 April Join us at the seminar hosted by Herbert Smith Freehills, providing essential updates from the Home Office, FCA, HMRC, OFSI, FCDO, JMLSG, Companies House, CPS, Met Police and leading cross-industry experts!

The full programme and speaker faculty can be viewed here.

Please click here to register and use code 'PIMFA' to get a 10% discount.

The Economic Secretary to the Treasury, John Glen’s speech at AFME event

In a speech to the Association of Financial Markets in Europe (AFME) on 1 March, John Glen, Economic Secretary to the Treasury, set out plans to create a simpler regulatory framework that supports high standards and makes the UK’s capital markets more attractive post Brexit.

Glen said there is real scope to improve and update MiFID and tailor it to the UK’s deep and global capital markets and deliver rules that are fair, outcomes-based and that support the openness and competitiveness of the country. He said that the Share Trading Obligation will be abolished because it effectively bars firms from trading in the places where they could get the best prices for their investors. The UK will also remove the Double Volume Cap in order to give investors more choice and cut transaction costs and burdens on Systematic Internalisers.

Glen also announced that the government intends to amend the scope of the Derivatives Trading Obligation to provide greater clarity to businesses and help firms to manage risk.

The FCA will be given a permanent power to modify the DTO’s scope to improve market

resilience and prevent fragmentation.

To improve the quality and boost the user-friendliness of market data for investors, the FCA will be given the tools it needs to help the industry develop a Consolidated Tape. Glen pointed out that where there is evidence that further MiFID reforms would improve the UK markets’ agility and competitiveness, the government will consider how best to take forward any such changes.

FCA Industry Committee on Secondary Markets Issues

The FCA is establishing an advisory committee to support its work across equities, derivatives, fixed income and commodity derivatives markets. Although the focus of the FCA's work is on wholesale business, the committee will provide input across a range of issues that are also of ongoing interest and concern to retail market participants, e.g. improving market integrity and competition, ensuring the proper functioning of secondary markets and enhancing consumer protection.

The FCA is looking for industry participants who are experts in how markets function and how they are regulated. Applications to join the committee must reach the FCA by 31 March - further details on the committee and the application process can be found here.

UK Prospectus Regime Review Outcome

The Government is taking forward reforms to the UK’s regime for the public issuance of securities and admission to trading on capital markets.

These are set out in the Prospectus Regime Review Outcome, which was published on 1 March 2022. One year on from the publication of Lord Hill’s landmark UK Listings Review, this document sets out the policy approach the government will take to reform the UK’s prospectus regime, following the Prospectus Regime Review consultation. As proposed in the consultation, the government will replace the regime currently contained in the UK Prospectus Regulation and will legislate to do so when parliamentary time allows. These changes will simplify regulation in this area and make it more agile and effective, as well as

facilitating wider participation in the ownership of public companies and improving the quality of information investors receive.

These changes will separate the regulation of public offers of securities from the regulation of admissions of securities to trading, as Lord Hill recommended. As part of this, the government will delegate a greater degree of responsibility to the FCA to set out the detail of the new regime through rules. As such, the full suite of reforms will take effect after the FCA has consulted on, and is ready to implement, new rules under its expanded responsibilities.

This is consistent with the government’s broader direction to return responsibility for designing and implementing financial services regulatory requirements to the regulators, following the implementation of the outcomes of the Future Regulatory Framework Review.

UK and New Zealand Sign Comprehensive Trade Deal

The UK has signed a far-reaching trade deal with New Zealand that will remove trade barriers on a huge range of UK goods and services and provide new opportunities for British businesses.

The UK-New Zealand trade relationship was worth £2.3 billion in 2020 and is now expected to increase by almost 60%, boosting UK economy by £800 million. This deal is the most advanced agreement New Zealand have signed with any nation bar Australia. It is also one of the UK’s greenest deals ever, confirming commitments to the Paris agreement and Net Zero. It will liberalise tariffs on the largest list of environmental goods in any FTA to date and encourage trade and investment in low carbon services and technology.

The agreement is one of a series of advanced deals with leading nations that will update trade rules for the digital age, building on the ground-breaking Digital Trade Principles agreed by G7 countries under the UK’s Presidency.

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