PIMFA Fortnightly News Bulletin - 27th June 2019

PIMFA - Building personal financial futures

PIMFA Fortnightly News Bulletin - 27th June 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 Firms We are delighted to welcome our latest new member firm:

Mitigo – Cybersecurity solutions and consultancy

We look forward to working with you.

No Deal Brexit preparedness: EU Commission communication The European Commission published its view of the EU’s No Deal preparations ahead of the European Council’s Brexit stocktaking exercise at the 19-20 June Summit. Importantly, it has restated that if the UK were to leave the EU without a deal it would have to “address” the main separation issues (Citizens’ Rights, Financial Obligations, and Irish border) as a precondition for starting any discussions about the future relationship.

Whilst the Commission confirmed that there will be no new legislation prior to 31st

October, we would like to draw your attention to the following: Financial services sector preparedness: The Communication notes that while “significant progress” had been achieved in the industry, it stressed that insurers, payment service providers and other firms which “remained unprepared regarding certain aspects of their business” are strongly encouraged to finalise preparatory measures. It singled out contract management and access to infrastructures in particular. The Commission warns that if the UK leaves without a deal, it would “necessarily result in some market fragmentation in financial services”.

For your further information, the Brexit Preparedness Communication can be found here and the Press Release here.

European Council Update The European Council meeting of the EU Heads of State or Government on 20th/21st June failed to reach agreement on who should take on the EU’s top jobs. In addition to agreeing on who should be the next President of the European Commission, the EU28 leaders also need to decide on a new President of the European Central Bank and the EU’s High Representative for Foreign Affairs and Security Policy. The three Spitzenkandidaten - Manfred Weber (EPP), Frans Timmermans (S&D), and Margrethe Vestager (Renew) - are competing for the role of the Commission President but all three failed to get the support of the majority of Member States. The rules require candidates to get the support of at least 21 EU leaders.

Due to the lack of progress, another summit of the EU leaders will be held on 30th June in order to agree on a compromise candidate.

Brexit was not a major topic of the meeting but the European Council’s President Donald Tusk gave an update on developments regarding UK’s departure. He confirmed that that the Withdrawal Agreement negotiated with Theresa May and rejected by the UK Parliament three times, will not be reopened. Irish Prime Minister Leo Varadkar said that there was “enormous hostility” among the EU27’s heads of state and government to any further delay to Brexit. He suggested that in such atmosphere an extension could be granted only in order to allow for a general election or a second referendum to take place in the UK.

If you have any queries, please contact Maja Erceg.

CSDR – Settlement Internalisation Reporting – first reports due by 12 July 2019 As you know, under CSDR, the Bank of England (BoE) is expecting firms to have delivered their first settlement internalisation reports covering the quarter 1 April – 30 June 2019 by 12 July 2019.

The BoE acknowledged that the short timeframe for the User Acceptance Testing (UAT) period might have been an issue for some firms.

Unfortunately it was not possible for the BoE to extend the UAT window - however, the BoE will: “..exceptionally allow firms to “backload reports” and to be able to submit reports after the 12 July deadline.” but they “expect firms to take steps to meet their reporting requirements within a reasonable timeframe.”

PIMFA has asked the BoE for a definition of ‘a reasonable timeframe’ – the BoE responded: “We would appreciate if firms could submit their settlement internalisation report not too long after the 12 July deadline. However, we would accept delayed first reports until the start of the next reporting period, i.e. 1 October 2019. Please do let us know if PIMFA firms are likely to have any problems meeting this date."

"Could you also inform firms that until they report successfully, they will continue to receive submission reminders from BEEDS (as this is an automated process), and that they should dismiss these reminders.”

If you have any queries on the above, please contact Kevin Sloane.

SM&CR: What you should know and what you should be doing right now (core firms) Successful SM&CR implementation requires various internal stakeholders to positively collaborate and learn in a peer to peer environment. This is why we've introduced our 'bring a colleague for free' option, which is available on our ½ day SM&CR training.

This practical, interactive ½ day workshop, which takes place on Wednesday 3rd July, is based on the latest PIMFA SM&CR guidance to member firms and includes case studies, scenarios and examples that will give you and your colleagues the knowledge and the confidence to successfully implement SM&CR in your firm. For more information and to reserve your place please click here

Please note, members firms who are interested in attending this SM&CR training workshop are entitled to bring a colleague along for free. This means PIMFA members only pay £300 for two workshop places.

If you require further information, please contact Philip Allen.

Tips on getting the most out of your membership We thought that it may be useful to remind members of some top tips to ensure they are getting the maximum benefits from their PIMFA membership: •

Regularly check your directory listing on our website – its free advertising and over 85 000 people access our ‘find a firm’ facility each year

•

Please make sure your IT team have whitelisted our domains - pimfa.co.uk and pimfa.uk – to ensure our communications are not blocked and you don’t miss out on your free member benefits such as CEO letters, Update, newsletters, useful guides, webinar and event invitations etc.

•

If you use the WMA MSCI Private Investor Indices as a PIMFA member you are entitled to a 50% discount. Contact MSCI at wma@msci.com to find out more

•

Check out our PIMFA Plus web area for the latest members discount on essential services – more are being added all the time

If you have any questions, please email us at enquiries@pimfa.co.uk and we will be happy to help.

PIMFA Press Releases

The latest PIMFA Press Releases: •

PIMFA:Industry must Safeguard Public Trust in Sector

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PIMFA responds to FCA’s Action on Benefit Transfers

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PIMFA comments on Woodford Suspension and the Implications on the Financial Services Sector

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PIMFA responds to Evaluation of the Retail Distribution Review and the Financial Advice Market Review Call for Input

Read all of the PIMFA press releases here

PIMFA Consultation Responses PIMFA lobbies on behalf of our membership by utilising our members vital feedback across numerous key industry stakeholders from governmebnt to regulators and beyond.

The scope and volume of regulation is a key concern and one of our key objectives is to ensure this regulation is proportionate and fair, bringing real benefits to the personal investment management and financial advice community and their clients.

Our latest consultation papers have been: •

CP19/12 : Consultation on Investment Platforms Market Study remedies

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PIMFA’s1 response to HM Treasury’s consultation on the Transposition of the Fifth Money Laundering Directive

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PIMFA’s response to: DP19/1 Building a regulatory framework for effective stewardship

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PIMFA response to Evaluation of the Retail Distribution Review and the Financial Advice Market Review Call for Input

Read all of PIMFA's Consultation Papers here

Credit card payment for PIMFA events With effect from 1st June 2019, PIMFA events will need to be paid for at the time of booking. There will be no option available to select to pay later on invoice. A receipt/paid invoice will be available to download for your records.

Paying by credit card at the time of booking will ensure our booking is complete and your place reserved immediately. The change in process will also significantly reduce the time spent on debt collection which will enable better use of PIMFA resources.

What's coming up in PIMFA? CPD Training Course: SM&CR – What You Should Know And What You Should Be Doing Right Now (Core Firms) Wednesday 3rd July 2019, 09.30-13.00 PIMFA Offices, 22 City Road, Finsbury Square London, EC1Y 2AJ CPD: 3.5 hours Bring a colleague along for free

With less than 6 months to go before SM&CR comes into effect, time is running out for senior managers and members of core firms to bring themselves up to date with what this means for the governance and culture within the firm, along with their own individual responsibilities and accountabilities.

This practical 3½ hour workshop, underpinned by PIMFA latest guidance on SM&CR for firms, steers clear of offering you a ‘do’s and don’ts’ lists of the new regime; rather, it tackles, through practical scenarios and case studies, a simple, clear and proportionate approach to SM&CR that will help your firm achieve a smooth transition into the new regime.

Trainer: John Williams, Independent Consultant

Do you have 5 or more staff interested in attending this workshop? If so, it may be more

cost effective to run a tailored version of this workshop in your offices. For further details and costs please contact phila@pimfa.co.uk

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Women in Wealth Forum 8th October 2019 Fidelity International 25 Cannon St London EC4M 5TA CPD: 3 hrs Our final PIMFA ‘Women in Wealth’ event for 2019 brings together colleagues from across the industry for peer-to-peer debate, networking and inspiration.

Speakers will include top female professionals from our industry and its key stakeholders to share insights and experience, as well as a practical element of takeaways suitable for both men and women on individuality within your organisation.

Speakers: •

Stuart Cummins, Managing Director and Executive Head, Needbank Private Wealth •

Liz Field, Chief Executive, PIMFA

•

Mark Freed, Chief Executive, E2W •

Anita Rolls, Consultant

Sign Up

PIMFA Annual Summit 2019 16th October 2019 etc. venues County Hall Riverside Building, Belvedere Rd, Lambeth London SE1 7PB

CPD: 6 hrs The PIMFA Annual Summit 2019 will be taking place in London on Wednesday 16th October.

Our flagship conference provides delegates with the opportunity to investigate and gain a comprehensive understanding of the issues that impact upon the investment management and financial advice sector, providing an exceptional opportunity to debate, gain insight and network.

Speakers:

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Katy Balls, Political Correspondent, The Spectator

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Julia Dreblow, Founding Director, Fund EcoMarket

Daisy McAndrew. Former Economics Editor and Chief Political Correspondent, ITV News • •

Stephen Bush, Political Editor, New Statesman

Dr. Rebecca Harding, Chief Executive, Coriolis Technologies •

Rt Hon. Jim Murphy, Managing Director, Arden Strategies

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What's happening in our industry Law Commission report on the Suspicious Activity Reporting (SAR) regime On the 18th June, the Law Commission published its final report on reform of the SAR regime. It made 19 recommendations designed to improve the efficiency and effectiveness of the consent regime and achieve a more proportionate and user-friendly system.

In particular, the Law Commission recommends setting up an advisory board to provide statutory guidance on a number of key legislative concepts. It is now for the government to review and consider the recommendations and provide an interim response.

You can read the full report here.

Latest news from the Financial Conduct Authority (FCA) FCA publishes consultation - Our framework: assessing adequate financial resources The consultation outlines the FCA's plans to help solo-regulated firms improve the way they operate, so they can prevent harm from occurring and put things right when they go wrong. Their proposals clearly outline the meaning of ‘adequate financial resources’ on Threshold Conditions and Principles for Businesses (PRIN).

FCA have also set out: •

Why it’s important for firms to have adequate financial resources

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Why and how FCA assess the adequacy of a firm’s financial resources

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What FCA expect from firms

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What FCA focus on during our supervisory reviews

The consultation relates to FCA's work on Prudential Supervision, which was detailed in their Approach to Supervision, published in April 2019. The consultation will close on 13 September 2019.

For more information and to read the full document, please click here.

FCA publishes its first annual report on the perimeter

The FCA perimeter determines which firms require authorisation and what level of protection consumers can expect for the financial services and products they purchase.

The report, which will be published yearly, sets out: •

what the FCA does and doesn’t regulate

•

what challenges the perimeter presents and the actions the FCA is taking to overcome

them •

what this means for consumers

•

whether there are any issues with the perimeter which might require legislative or other

changes

Andrew Bailey, Chief Executive of the FCA, said; ‘We appreciate that the current perimeter is complicated. The boundary between which firms and activities do or don’t require regulation, is being constantly tested. The recent behaviour of some firms operating around the perimeter has caused serious consumer harm and reduced trust in regulated financial services markets.

‘We will publish this report annually from now on, in order to highlight issues around the perimeter.’

To read the full FCA Perimeter Report 2018/19, please click here.

Latest Industry Events SRI Services & Partners ‘Good Money Week’ Event 2019 9th October 2019, 10.30 - 19.00 Barbican Centre, Silk Street, London, EC2Y 8DS The ‘SRI Services and Partners’ showcase event for financial services intermediaries during ‘Good Money Week’ 2019.

Enjoy presentations, panel discussions and round table meetings with a range of fund managers and experts from across the ESG, SRI, sustainable, responsible and ethical investment market… with plenty of time to mingle over a sandwich lunch and drinks reception in the Barbican’s beautiful conservatory (when formal proceedings have ended).

See the www.FundEcoMarket.co.uk ‘Events Page’ for further information – or contact events@sriServices.co.uk or Julia@sriServices.co.uk if you have questions.

Please be aware this event is strictly for financial advisers and related retail financial services professionals only.

#SRI #SustainableInvestment #ESG #IFA

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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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