PIMFA Fortnightly News Bulletin - 22nd February 2019

PIMFA - Building personal financial futures

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PIMFA Fortnightly News Bulletin - 22nd February 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?

PIMFA/Department for Digital, Culture, Media & Sport Roundtable We are looking at holding a Roundtable in London on 27th February 2019 with Department for Digital, Culture, Media and Sport (DCMS) to discuss business readiness in respect of the application of the GDPR if the UK leaves the EU on 29th March without a deal and the impact of this on data flow across border.

The DCMS would like to hear about firms’ reliance on the flow of personal data from clients in the EU and whether any restrictions on it may affect your ability to carry out investment business or advice in respect of these clients after the UK leaves the EU. We are proposing the Roundtable for Wednesday 27th February 2019 from 12.30pm to 2pm, at our Office, 22 City Road, London EC1Y 2AJ.

Please would you be kind enough to let Celeste Houghton know if you would be interested in attending.

Environmental, Social & Governance Investin g This is an area of increasing importance for the wealth management sector. The EU has staked out its claim to this topic but there is still opportunity for the sector to influence the evolution of expectations on firms. Translating consumer's desires to protect the environment and support proper governance and ethical behaviours comes with a challenge as to how to put in place a suitable framework to ensure consumers can make accurate comparisons between product providers and make suitable choices to put in place the arrangements to meet their financial needs and goals.

The Financial Conduct Authority (FCA) is engaged in this area and intends to consult with the industry in 2019. Initially in the area of Independence Governance Committees (IGCs), they require them to report on their firm’s policies on environmental, social and governance (ESG) issues, including climate change, members’ ethical concerns and on stewardship. At the same time, the FCA will also consult on introducing related guidance for providers of workplace personal pension schemes to consider financial and nonfinancial factors when making investment decisions. The FCA's intention is to consult on a single package of rule changes affecting IGCs.

If you have any queries on this, please feel free to contact Des FitzGerald.

Crowe Cyber Maturity Survey The PIMFA CEO Sentiment Survey and recent discussions with PIMFA members have confirmed that cyber security is a key area of focus for senior executives.

In seeking to provide a tangible way for members to better understand their current readiness and exposure, Crowe Risk Consulting has designed a bespoke Cyber Maturity Assessment (CMA) questionnaire, based on their comprehensive CMA offering, designed to help firms determine their current state and an appropriate pathway forward.

Crowe are facilitating a multi-faceted approach that brings together self-assessment,

benchmarking and research components to help you understand your cyber maturity and how this compares to your peers.

The assessment has been designed to provide meaningful results so please plan up to half an hour to complete it. However, it can also be saved and progressed as convenient for you. The assessment will remain available until 6th March at which time it will close to allow the Benchmark reports to be produced.

PIMFA members can anonymously access the assessment here.

If you have any questions about the Cyber Maturity Assessment, please contact neil.currie@crowe.com

PIMFA Press Releases In order to keep you up to speed with what PIMFA is saying to the media and key stakeholders about important issues that affect our members, you can see our latest Press Releases here.

PIMFA Launches Diversity Conference to Help Tackle Diversity & Inclusion Gap in Financial Services PIMFA Criticises FSCS ÂŁ300M Levy PIMFA Calls on Committee to Rethink its Conclusions on Contingent Charging PIMFA Responds to Parliament Votes on Brexit Next Steps PIMFA Calls Retirement Outcomes Review from FCA an Opportunity Missed for Consumer Engagement

PIMFA Consultation Responses PIMFA responds on behalf of our membership to numerous key issues within our industry.

We do this via vital feedback and discussion with member firms. From this member feedback PIMFA create responses to consultation documents and discussion papers issued by bodies such as the UK’s regulator, the Financial Conduct Authority (FCA),

Government departments and many European and International bodies.

The scope of regulation is increasing and one of PIMFA’s key objectives is to ensure this regulation is proportionate and fair, bringing real benefits to the investment management and financial advice community and their clients.

Read PIMFA's Consultation Papers Here

What's coming up in PIMFA? TELL US WHAT EVENTS YOU WOULD LIKE IN 2019 Five Key Questions…

1.

Which type of events/subjects would you like to see from PIMFA in 2019?

2.

Which events would you like us to continue for 2019?

3.

Are you interested in attending a PIMFA seminar in your region? If so, please state

below the region you are in and content you’d like covered:

4.

If you have recently attended a PIMFA event, please select the most valuable aspects

of attending a PIMFA event: •

CPD Hours

•

Content

•

Networking

•

Other (please state)

5.

If you would like to submit general events feedback, please do so below:

We look forward to an exciting year ahead, exploring new initiatives in support of our members and the investment management and financial advice community.

PIMFA Women in Wealth Networking Reception 2019 Wednesday 13th March 2019, 18:00 - 21:00 Fidelity International, 25 Cannon St, London, EC4M 5TA SOLD OUT The PIMFA Women in Wealth event series is back for 2019, continuing to provide a platform for candid discussion amongst professionals within the world of wealth.

This event will provide access to the UK’s top professionals in the investment management and financial advice industry. This forum provides the opportunity to network, meet inspirational people while gaining insights on the wider industry and ways to progress your career

Keynote address by Mary-Anne Daly, Chief Executive of Cazenove Capital, who will be sharing her career journey and how she got to where she is today.

To be added to the waiting list, please click on Waiting List below #WomenInWealth

Waiting List

PIMFA Financial Crime Conference 2019 Tuesday 19th March 2018, 09:00 – 17:00 Central London Venue – TBC CPD: 5 hrs Join us at the PIMFA Financial Crime Conference and access leading industry debate from professionals across the regulatory, law enforcement and cyber security space.

Our expert speakers include: •

Paul Hoare, Senior Manager – Protect and Prevent, National Crime Agency •

Chris Ninan, Senior Associate, Herbert Smith Freehills

Topics will include: •

FCA Update •

• •

•

Bitcon/DLT

Regulatory Update

• •

GDPR

Networking Lunch

Risk Assessment Good Practice

Offence of Failure to Prevent Economic Crime & Legal Privilege •

Vulnerable Customers •

Cyber Cecurity

#PIMFAFinCrime19

Book now

PIMFA Associate Members Briefing and Drinks Reception Wednesday 27th March 2019, 17:30 – 21:00 Farrer & Co, 20 - 23 Lincoln's Inn Fields, London, WC2A 3ED Attendees will benefit from networking opportunities with other industry professionals over a drinks reception.

We will explore topics such as regulation, operations, taxation 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.

Sign Up

PIMFA Compliance Conference 2019 Tuesday 18th June 2019, 0900-1700 Herbert Smith Freehills Offices, Exchange House, Primrose St, London, EC2A 2EG CPD:5hrs The annual PIMFA Compliance Conference will be taking place on Tuesday 18th June 2019.

Hear from leading industry experts on the key issues facing compliance professionals in the investment management and financial advice world.

#PIMFAComplianceConf

Sign Up

What's happening in our industry Financial Conduct Authority (FCA) announces appointment of new Chair of the Financial Services Consumer Panel Earlier this week, The Financial Conduct Authority (FCA) announced the appointment of Wanda Goldwag as the new Chair of the independent Financial Services Consumer Panel. The appointment, effective from 1 March 2019 for an initial three-year term, has been confirmed by HM Treasury.

Wanda will be the public face of the panel, leading and giving strategic direction by representing the Panel’s views to the FCA board and to the senior staff within the FCA and represent the Panel outside the FCA. In addition to this, she will lead the development of the Panel’s work and ensure that performance goals are met. Wanda succeeds Sue Lewis, who was Chair for a total of five and a half years.

To view the full FCA press release, please click here.

For more detail on the Financial Services Consumer Panel, please click here.

European Data Protection Board (EDPB) and the General Data Protection Regulation (GDPR) post a 'No Deal' Brexit On 12th February 2019 the European Data Protection Board (EDPB) adopted an information note addressed to commercial entities and public authorities on data transfers under the GDPR in the event of a no-deal Brexit. The note contains important information on data transfer instruments and the steps to take to prepare for a no-deal Brexit and we advise members to read it carefully. The link to the note can be found here.

Data flows from the EEA to UK: In the absence of an agreement between the EU and the UK (no-deal Brexit), the UK will become a third country from 00.00 am CET on 30th March 2019. As a consequence, the transfer of personal data from the EEA to the UK will have to be based on one of the following instruments: Standard or ad hoc Data Protection Clauses, Binding Corporate Rules, Codes of Conduct and Certification Mechanisms and the specific transfer instruments available to public authorities. In the absence of Standard Data Protection Clauses or other alternative appropriate safeguards, derogations can be used under certain conditions.

Data flows from UK to the EEA: As regards data transfers from the UK to the EEA, according to the UK Government, the current practice, which permits personal data to flow freely from the UK to the EEA, will continue in the event of a no-deal Brexit.

HMRC guidance on staying clear of tax avoidance HMRC has published some helpful guidance on how to steer clear of tax avoidance schemes.

Firms can access a list of the ten things HMRC wants everyone to know about tax avoidance and how to spot a tax avoidance scheme online.

Firms who enable or promote tax avoidance will face financial penalties – 100% of fees received or receivable by the enabler, and this applies to steps taken by enablers on or after 16 November 2017.

More information about the enablers legislation can be found at GOV.UK.

Disguised remuneration schemes are one example of tax avoidance which pay loans or other credits instead of ordinary income to avoid income tax and National Insurance

contributions.

The government has introduced a range of measures to tackle disguised remunerations schemes.

If a disguised remuneration loan or credit is still outstanding on 5 April 2019, there will be a tax charge to pay = this is known as a ‘loan charge’.

If you have clients who have used disguised remuneration tax avoidance schemes and are asking for advice, please encourage them to contact HMRC to resolve issues before the loan charge comes into force on 5 April 2019.

They are likely to pay less by taking action now rather than waiting for the charge to come into effect. Guidance is available here: GOV.UK.

If you are aware of any tax avoidance schemes in operation, you should report them to HMRC at c-a.reporttaxavoidance@hmrc.gsi.gov.uk

Financial Conduct Authority (FCA) 'Dear CEO' letter on Financial Promotions On the 9 January 2019 FCA placed on their website a letter addressed to the CEOs of all regulated firms to remind them of their responsibilities relating to the use of financial promotions. FCA have recently become aware of firms issuing financial promotions which suggest or imply that all of the activities which they undertake are regulated by FCA or the Prudential Regulation Authority (PRA) when in fact they are not, and have been operating/communicating unregulated financial promotions.

For example, promotions relating to mini-bonds and cryptocurrency products which are not regulated by FCA or protected by Financial Services Compensation Scheme (FSCS).

The letter, which can be found here, reminds firms’ senior managers and boards of what constitutes fair, clear and unambiguous financial promotions.

Funding of up to £1,000 for investment sector women available

Women & Leadership International is administering a national initiative to support the development of female leaders across the UK’s investment sector.

The campaign is providing women with grants of up to £1,000 to enable participation in a leadership development program.

The scholarship funding aims to provide a powerful and effective development opportunity for women in the investment sector; however, the funding is strictly limited and has to be allocated prior to the end of April.

Find out more and register your interest by completing the Expression of Interest form prior to Friday, 5th April by clicking here: www.womenandleadership.org/finance.html

Latest Industry Events Implementing Senior Managers & Certification Regime (SM&CR) as an LLP Tuesday 26th February 2019 Grocer’s Hall, Princes Street, London, EC2R 8AD You’re invited to join Duff & Phelps for a breakfast seminar where we will address the specific issues confronting LLPs when implementing the Senior Managers and Certification Regime (SM&CR) which will apply to solo regulated firms from 9 December 2019.

We are delighted to be joined by keynote speaker, Peter Ewing of the Financial Conduct Authority, and guest speaker, Nick Colston, Partner, Simmons and Simmons.

Topics include: • The Financial Conduct Authority’s expectations on how SM&CR will apply to LLPs • The legal challenges presented by SM&CR facing LLPs and their members • How SM&CR impacts the tax status of the LLP’s members

• Practical application of SM&CR relating to Corporate Members

Sign Up

Japan Securities Summit Monday 4th March 2019, 13.00 – 19.00 Mansion House, Walbrook, London, EC4N 8BH The Japan Securities Dealers Association (JSDA) and the International Capital Market Association (ICMA) will co-host the 5th Japan Securities Summit on 4 March 2019 at the Mansion House in London, by kind permission of the Rt Hon the Lord Mayor.

The summit, which will feature contributions from high profile speakers from the Japanese market, government and central bank, will provide European investors and financial market professionals the outlook for the Japanese economy and the latest developments in the Japanese securities market with particular focus on issues affecting sustainable growth as well as the potential impacts of Brexit.

Admission: This summit is free to attend and open to all ICMA members and interested financial market participants; however registration in advance is essential.

This can be done by clicking below.

Register

Financial Conduct Authority (FCA) Brexit Briefings Central London, 11th March 2019 - Edinburgh, 14th March 2019

As the UK prepares to leave the EU, regulated firms should consider if or how they will be affected and what action they may need to take. As more information about what Brexit will mean for financial services emerges, firms need to make sure they understand the implications and plan accordingly.

Places are limited. If you are unable to join in person, there will be a live webcast.

To register for either the breakfast briefing or the webcast, please click below.

Register

Wealthtech 2019: The Truth About Digital Tuesday 26th March 2019, 15:30 - 20:00 London All new technologies fuel agility and efficiency in the industry but do wealth managers see virtual interactions as a threat, or complementary to, traditional methods?

Join us at our WealthTech conference on the topic “The Truth About Digital” on Tuesday, 26th of March 2019 to find out the reality.

Based on our research, we will be delivering an assessment of the digital landscape and which developments the wealth sector is prioritising.

There is no charge for this seminar for representatives of wealth management firms and private banks. A charge of £250 + VAT per ticket applies for service providers.

CPD certificates will be issued shortly after the seminar

Sign Up

View all the latest industry events on our website here

If your firms has an event which you would like to post on this area, please click here to submit it.

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