PIMFA Fortnightly News Bulletin - 21st October 2019

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PIMFA Fortnightly News Bulletin & Brexit Update 21st October 2019 Welcome to the PIMFA Bulletin, our fortnightly e-newsletter delivering a snapshot of the latest news and current affairs from within PIMFA and the industry.

What is PIMFA working on?

New PIMFA Member Firm We are excited to welcome a new member firm to the association:

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Santander Private Banking

We look forward to working with you.

BREXIT UPDATE Current position Following the recent rapid political developments which, at the time of writing, await the introduction by the Government of the Brexit Deal Implementation Bill into Parliament, the prospect for No Deal Brexit appears to have diminished.

The EU 27 seem prepared to offer an extension of the Article 50 process beyond 31st October if needed, while the Benn Act against No Deal still stands. However, a No Deal on 31st October could still occur, with all the immediacy of change which that could bring, and PIMFA firms should continue to be ready for this eventuality. It means that the transition period would not apply and the UK would become a third country on 1st November. In such a scenario our advice remains the same. As passporting will cease to exist, firms wishing to access clients in the EU Member States need to consider the following options: •

Setting up an entity in each Member State where there are clients

•

Setting up a passporting subsidiary in one EU Member State for all EU clients

•

Merging or affiliating with an existing EU based firm

•

Seeking an alternative provider to the EU clients and withdrawing from the EU

private client market •

Only using mitigating factors such as a reverse solicitation in situations where

they have checked that it will work

FCA Brexit Latest The FCA has issued an update on steps certain firms need to take in the event the UK leaves the EU without a deal on 31st October 2019. The deadline for the EEA firms to notify the FCA, if they wish to continue to work in the UK post Brexit, has been October 30th. According to the latest FCA statement, firms will not need to submit a full application for the Temporary Permissions Regime by that time, but just let the FCA know of their intention to apply. The TPR allows EU firms to work under the licenses they currently hold for two years after a no deal Brexit. Once they have been given full authorisation, the FCA expects the EEA firms to have a physical presence in the UK to ensure effective supervision.

The FCA also said Transaction Reporting will change immediately upon Brexit, even if there is a deal on October 31st. Firms who currently report to the European Securities and Markets Authority would have to report trades to UK authorities instead on the first day after Brexit. To smooth the transition, the FCA gave derivatives traders and regulated trade repositories a grace period to comply with this requirement. The deadline is November 3rd for trade repositories and

November 4th for derivatives traders, who will send data to repositories rather than the FCA directly. The full FCA statement can be found here.

PIMFA Operational Resilience Working Group At the end of September we held the first meeting of the Operational Resilience Working Group.

Simon Chard and Adam Stage from PwC gave a very useful and engaging presentation “Operational Resilience: a time to act” in which they gave a definition of Operational Resilience, looked at the various components involved, outlined the timetable for implementation of new regulatory policy, and explored the key steps; defining critical business services and setting and testing Impact Tolerances.

At the next meeting, which will take place towards the end of this month, the working group will be reviewing their critical business services.

In the meantime, PwC have published two useful papers on the subject: A blog entitled “Can you tolerate being punched in the face?”

And a white paper on Impact Tolerances

If you would be interested in joining this working group, please contact kevins@pimfa.co.uk.

White-listing the PIMFA domains to ensure all our emails reach you Please ask your IT teams to white-list our domains - pimfa.co.uk and pimfa.uk – this will ensure that PIMFA communications are not blocked and that you don’t miss out on your free member benefits such as webinars, podcasts, Update, newsletters, CEO updates, technical useful guides, event invitations and more. If you have any questions, please email us at enquiries@pimfa.co.uk and we will be happy to help.

Latest PIMFA Press Releases

Sustainability, Diversity and Wellbeing Highlighted As Key Topics at PIMFA Summit PIMFA Announces Strategic Partnership with Investor Meet Company PIMFA Annual Summit Addresses Key Areas for Evolution and Innovation in Financial Services PIMFA Women in Wealth Forum Encourages Culture Changes to Help Improve Gender Equality in Finance Industry heavyweights gather to discuss the future of the UK and the personal investment industry

Read all of PIMFA's Press Releases

Latest PIMFA Consultation Responses 

PIMFA’s response to Guidance Consultation 19/3: Guidance for firms on the fair treatment of vulnerable customers



ESMA call for Evidence: Inducements and Costs and Charges Disclosure Requirements under MiFID II



FCA CP19/20 - Our Framework – Assessing Adequate Financial Resources



BSI draft technical advice (PAS 7340) - Framework for embedding sustainable finance principles in financial services organisations

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FOS - Our future funding - A consultation

Read all of PIMFA's Consultation Papers

What's coming up in PIMFA? PIMFA LEARNING PIMFA's Autumn Webinars

We are currently running a series of FREE webinars. The next, supporting members in making their final preparations for SM&CR, is scheduled for November 7th.

For a full list of upcoming webinars, please click here.

*If you are registering for a PIMFA account for the first time, please allow 48 hours to authenticate your details, process bookings and receive your webinar link*

PIMFA's Training Courses In addition, we have engaged some of the leading experts in the field to design and deliver a number of training workshops for PIMFA member firms including; Let’s talk about Product Governance and PROD Rulebook Date: Tuesday 19th Nov Cost: £400 (members)/£500 (non-members)

With the FCA stating earlier this year that it will turn its attention on how firms are implementing new rules around product governance, advisors would be wise to review how they are complying with PROD (Product Intervention and Product Governance Sourcebook) which came into force rather under the radar with MiFID II in January 2018.

At its heart, PROD requires that advisors and providers must demonstrate to the regulator that the cost, service and investment proposition they are recommending are appropriate for each client segment. It is important for both groups to avoid another unregulated collective investment scheme, life settlement fund, pension transfer or whatever problem is coming around the corner.

This practical one day workshop prepares you to meet your obligations under PROD, helping you make any changes to products and services that you offer, so that by the end of this workshop you will be able to grasp what the FCA expects you to know about Product Governance & The PROD rules.

For more details on PIMFA's webinars and training courses visit our website/click

below or email learning@pimfa.co.uk. *Please note that as of 1st June, PIMFA events & learning can only be booked using a credit card* Sign Up

PIMFA Associate Members Briefing & Drinks Reception Monday 25th November 2019 Farrer & Co, London, Free to members We will be exploring topics such as regulation, policy, operations etc and providing an opportunity to discuss with PIMFA staff specific issues important to the membership. Attendees will also benefit from networking opportunities with other industry professionals over a drinks reception.

Sign Up

What's happening in our industry Latest news from the Financial Conduct Authority Gabriel users share suggestions for FCA's new data collection platform

Over 1,000 users and other Gabriel stakeholders shared their thoughts on the current system in their online survey. This feedback will help shape how they develop the new platform, with some key changes reflecting the priorities highlighted.

The feedback described key areas for improvements, such as accessing Gabriel, the viewing of your Gabriel reporting schedule and submitting data.

As a result, the FCA will be making changes, such as improving their support guidance, and will continue to use your feedback to make further improvements.

Early changes to their platform will be technology focused, allowing them to fix issues quicker and sooner, so initially there will be no change to the way firms currently provide data to them.

There will be a further opportunity to those interested in working with the FCA, to help design and test the new platform.

Their survey is still open to feedback and they will continue to provide stakeholders with regular updates. The FCA will contact you in good time before your firm moves to their new platform.

To access the survey, please click here.

Latest Industry Events The 5th Annual Culture and Conduct Forum for the Financial Services Industry Thursday, November 14, 2019 Royal Garden Hotel, 2 -24 Kensington High Street, London W8 4PT United Kingdom With an aim to improve public trust while also meeting the regulators’ expectations, financial services companies are re-designing their ‘purpose’ in order to encourage cultural change. However, questions remain including: 

How can strategies and incentives be aligned with the organisation’s new ‘purpose’? 

Does a clear definition of ‘purpose’ help to achieve a healthy culture?

At the 5th Annual Culture and Conduct Forum for the Financial Services Industry, we are delighted to welcome Andrew Wilson, Chief Executive Officer EMEA,

Goldman Sachs Asset Management; Joe Garner, Chief Executive Officer, Nationwide Building Society; Tiina Lee, Chief Executive Officer, UK and Ireland, Deutsche Bank; and Sir Charles Bowman, Partner, PwC, who will explore the role of purpose in creating healthy cultures and discuss how their organisations have approached the challenges of communicating it to their stakeholders and regulators.

Keynote Speakers 

Jonathan Davidson, Director of Supervision – Retail and Authorisations and a Member of the Executive Committee, FCA 

James Bergin, Deputy General Counsel and Senior Vice President of the Legal Group, Federal Reserve Bank of New York

Attendance at this highly topical event will be invaluable for the senior management of all FCA regulated firms, including banks, asset managers and insurers. It will also be of particular interest to heads of compliance, heads of operations, heads of legal, heads of internal audit, head of culture and HR and heads of training and education, as well as members of the advisory community, such as lawyers, consultants and accountants.

Cost: £645 + VAT – £516 with a 20% PIMFA member discount: CC5PIMFA

www.cityandfinancialconferences.com/cultureconduct2019

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MoneyWeek Wealth Summit Friday 22nd November 2019 etc.venues St Paul’s, 200 Aldersgate, London, EC1A 4HD The event will be hosted by MoneyWeek editor-in-chief, Merryn Somerset Webb, along with executive editor John Stepek and the editorial team, and focus on “The

future of wealth: growth and protection". We'll be discussing everything from the impact of political turbulence on your portfolio, to the most exciting technology investment themes, to the future of our increasingly topsy-turvy monetary system.

We’ll also be looking at both how to grow and how to protect your wealth against an increasingly complicated political and economic backdrop.

Confirmed speakers already include: 

James Anderson, co-manager of the extremely successful Scottish Mortgage Trust;  



British tycoon and longevity investor Jim Mellon; Financial historian and analyst Russell Napier;

Andy Haldane, the Bank of England's chief economist; Former pensions minister Sir Steve Webb; 

plus Dame Helena Morrissey.

https://moneyweekwealthsummit.co.uk/

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View all the latest industry events on our website here If your firm has an event which you would like to post on this area, please click here to submit it.

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