PIMFA Fortnightly News Bulletin - 3rd October 2019

PIMFA - Building personal financial futures

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PIMFA Fortnightly News Bulletin - 3rd 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 delighted to welcome our latest new member:

Alpha FMC - Consultancy We look forward to working with you.

BREXIT UPDATE Brexit and the FCA Amidst the ongoing political arguments and uncertainties about Brexit, it is important for PIMFA member firms not to lose focus on 31 October as the day on which the UK is obliged by law, as enshrined in the Withdrawal Act, to leave the EU. Government Ministries are working to this target, and will do so unless it changes. This can only happen if an extension to this deadline is granted by the other 27 EU member states, or if

the UK revokes its original activation of Article 50 of the Lisbon Treaty. The first of these cannot happen unless a request for an extension is issued by the UK Government. And while the second can be a unilateral UK action, there are no signs that the current Government will undertake it.

In the light of this situation, PIMFA’s advice to members at the time of writing remains to plan for EU exit on 31 October. We have made clear on a number of occasions the key considerations that this entails. A recent reiteration of these can be found here.

In addition, the FCA has recently augmented and updated its draft Directions to firms under its Temporary Transitional Power (TTP). The TTP gives the FCA flexibility in implementing post-Brexit requirements, allowing firms time to transition to a new UK regulatory framework. It applies if there is No Deal or if in some other way the UK leaves the EU without a transitional period in place. Under the Deal based on the existing Withdrawal Agreement the TTP would not come into force at the time of EU exit since that Agreement already contains a Transitional or Implementation period. Since we do not yet know whether there will be Deal or No Deal at exit, we recommend that firms be familiar with the TTP and its Directions in case it needs to be brought into effect.

The FCA Press Release on the TTP update can be found here. This contains links to other FCA Brexit statements and to the updates to its March 2019 draft Directions.

These updates cover: •

extending the proposed duration of the Directions issued under the TTP from 30 June

2020 to 31 December 2020.

•

updating the provisions relating to prudential requirements in the FCA Directions to

reflect new HM Treasury legislation and FCA exit instruments published since 29 March 2019. The FCA policy approach has itself not changed.

•

revoking certain Directions in relation to payment services, provided by EEA credit

institutions in the financial service contracts regime, as these are no longer needed because of legislative amendments made by the Government.

•

applying a standstill Direction to allow EEA Central Banks and the European Central

Bank to continue to rely upon their status as exempt persons until 31 December 2020.

Further information can be found in the FCA material itself.

STOP PRESS: UK's alternative proposals to the Northern Ireland

backstop The UK today formally presented its alternative proposals to the current Northern Ireland “backstop” contained within the Withdrawal Agreement. The Prime Minister’s letter to Commission President Juncker can be read here.

The proposals represent a shift from the Prime Minister’s previous approach of seeking to remove the backstop altogether, but still call for significant changes to the Withdrawal Agreement.

Summary of proposals: 

Once the transition period concludes at the end of 2020, the whole of the United Kingdom (including Northern Ireland) will be outside of the EU Customs Union.



Any future customs checks between Northern Ireland and the Republic should take place on a “decentralised” basis – such as in businesses and along the supply chain. These precise customs changes should be determined between now and the end of the transition period.



After the transition period ends, Northern Ireland will remain aligned to the Single Market for all goods and agricultural products, under the jurisdiction of the European Court of Justice (ECJ).



Following the end of the transition period, the Northern Ireland Executive and Assembly will have the opportunity to review Northern Ireland’s alignment with the Single Market every four years. Under the current timescale, this would mean the first review would be in 2025.

EU reaction: 

While welcoming some aspects of the proposals, President Juncker has made clear that protecting the integrity of the Single Market remains the priority for the EU. The EU is keen to avoid being perceived as responsible for a no-deal Brexit, and has committed to further meetings in the coming days.



The Irish Prime Minister has also said that the UK proposals do not fully meet the objectives of the backstop, and will consult with the EU institutions and EU27 leaders on next steps.



EU27 leaders remain united, with German Chancellor Angela Merkel stating her support for Michel Barnier in a press conference earlier today.

Next steps: 

EU Chief Negotiator Michel Barnier will brief Brexit coordinators and the European Parliament's Brexit Steering Group this evening, while President Juncker is expected to speak to Irish Prime Minister Leo Varadkar.



Meetings will continue in the coming days in advance of the Council Summit on 17/18 October, seen as a crucial milestone in the negotiations.

CSDR Settlement Discipline Technical Workshop 10th October, 14:00 at PIMFA Offices Euroclear have kindly agreed to present and answer questions at a Central Securities Depositories Regulation (CSDR) settlement discipline technical workshop on 10th October 2019. This will run from 14:00 to 16:00 and be held at the PIMFA offices, 22 City Road, London EC1Y 2AJ. Conference call facilities will also be available.

This technical session is aimed at representatives from members’ IT departments and those associate members who are software, data and services providers and consultants. Euroclear will be running through their plans for CSDR Settlement Discipline and exploring how they will deliver this new regime from a technical standpoint, and how CSD participant firms will be required to interact with it.

This is an opportunity for firms’ in-house IT teams and data, software and services suppliers and other interested parties to raise any questions about the mechanics of CSDR settlement discipline with Euroclear and to understand the revised implementation timetable. If you would like to attend this workshop – either in person or via the conference call - please email kevins@pimfa.co.uk.

PIMFA Financial Adviser Survey 2019 If you are a Financial Advice firm, PIMFA would like to hear from you to gather your input for our Financial Adviser Survey 2019, which can be accessed here.

We are looking to gain some insight into what the main concerns are for Financial Advisers this year. This will provide us with greater clarity concerning both the constraints and the growth opportunities within the industry, now and in the future.

The survey can be completed in under five minutes and your participation is greatly appreciated. All data provided will remain anonymous and we will be distributing the resulting report later this year. If you have any queries or comments please email PIMFA’s Head of Research, Gary Sunderland.

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 

Industry heavyweights gather to discuss the future of the UK and the personal investment industry



PIMFA Expresses Concerns about the Complexity of the MiFID II Costs & Charges



PIMFA responds to “Confusing” FCA Financial Resources Consultation Paper



CEO’s State Regulatory Matters as their Biggest Concern



PIMFA Condemns New 50:50 Funding Proposal in Consultation Response to FOS Funding

Read all of PIMFA's Press Releases

Latest PIMFA Consultation Responses



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



FOS - Our future funding - A consultation



Draft technical advice on minimum requirements for the EU climate-transition benchmarks and the EU Paris-aligned benchmarks and benchmarks’ ESG disclosures

Read all of PIMFA's Consultation Papers

What's coming up in PIMFA? PIMFA LEARNING PIMFA's Autumn Webinars We are currently running a number of FREE webinars supporting members in making their final preparations for Effective Handling of Complaints and SM&CR. For a full list of upcoming webinars, please click here.

*If you are registering for a PIMFA account 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;

Everything You Need to Deliver SM&CR Conduct Rules Training in Your Firm: Train the Trainer Workshop and Toolkit Date: Wednesday 16th October Cost: £750 (members)/£950 (non-members)

The FCA announced on 5th August that it will be increasing its supervisory focus on how firms are embedding the conduct rules under SM&CR. This ½ day training workshop and toolkit provides you with everything you and your firm need to deliver job role specific conduct rules training in your firm by the 9th December. For more information and to book your place on this workshop click here.

Clear, Fair and Not Misleading: Financial Promotions, What Your Firm Needs To Know Date: Tuesday 22nd October Cost: £400 (members)/£500 (non-members) Earlier this year the FCA expressed concerns that firms were still falling ‘well short’ of the standards expected on financial promotions of retail investments. This interactive one-day workshop provides a timely reminder for firms of their responsibilities relating to the use of financial promotions, suitability reports, what regulations financial advisors should be aware of, and how they ensure they don’t fall short of the FCA expectations. For more information and to book your place on this workshop click here.

Further courses include; 

MiFIR Transaction Reporting Core Training 14th Oct



The Fundamentals of Complaint Handling 17th Oct



Let’s talk about Product Governance and PROD Rulebook 19th Nov

For more details on these 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

Women in Wealth Forum 8th October 2019

Fidelity International, London CPD: 3 hrs, Free to members 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 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, Nedbank Private Wealth

•

Liz Field, Chief Executive, PIMFA

•

Mark Freed, Chief Executive, E2W

•

Sarah Kaiser, Global Head of Diversity & Inclusion, Fidelity International

•

Anita Rolls, Executive Coach and Consultant

Sign Up

PIMFA Annual Summit 2019 Wednesday 16th October 2019 etc. venues County Hall Riverside Building, Belvedere Rd, Lambeth London SE1 7PB CPD: 6 hrs KEYNOTE SPEAKERS: David Ellis, CEO, Harlequins Chris Packham CBE, TV Wildlife Presenter

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, learn and network.

Expert Speakers On The Day Include •

Katy Balls, Political Correspondent, The Spectator

•

Torsten Bell, CEO, Resolution Foundation

•

Stephen Bush, Political Editor, New Statesman

•

Julia Dreblow, Founding Director, Fund EcoMarket

•

Debbie Gupta, Director - Life Insurance & Financial Advice, Financial Conduct

Authority (FCA) •

Dr. Rebecca Harding, Chief Executive, Coriolis Technologies

•

Holly Mackay, Founder & CEO, Boring Money

•

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

News •

Rt Hon. Jim Murphy, Managing Director, Arden Strategies

*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 FCA confirms new rules for certain open-ended funds investing in inherently illiquid assets The FCA has just confirmed new rules which apply to certain types of open-ended fund investing in inherently illiquid assets such as property. The new rules apply to these funds, known as non-UCITS retail schemes (NURSs), but will not apply to other types of fund, such as UCITS, which are already subject to restrictions relating to such assets.

The FCA’s new rules require that investors are provided with clear and prominent information on liquidity risks, and the circumstances in which access to their funds may be restricted. They place additional obligations on the managers of funds investing in inherently illiquid assets to maintain plans to manage liquidity risk. The rules also aim to reduce the potential for some investors to gain at the expense of others, and reduce the likelihood of runs on funds leading to ‘fire sale’ of assets which disadvantage fund investors.

The new rules announced come into effect on 30 September 2020.

For more information, please see the following: 

PS19/24: Illiquid assets and open-ended funds and feedback to Consultation Paper CP18/27



Consultation Paper 18/27 on illiquid assets and open-ended funds and feedback to Discussion Paper 17/1



Discussion Paper 17/1 on the regulatory approach to open-ended funds investing in illiquid assets

Latest Industry Events SRI Services and Partners’ Showcase: Screened,Themed & Engaged 2019’ 9th October 2019, 11:30 - 20:00

Barbican Centre, London The unmissable ‘SRI Services and Partners’ showcase event for financial services intermediaries during ‘Good Money Week’ 2019.

Enjoy presentations, panel discussions and ‘break out’ meetings with a range of fund managers and subject specialists 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).

Our keynote speaker this year will be Emma Howard-Boyd, Chair of the Environment Agency.

To sign up, please click the box below or contact events@sriServices.co.uk or Julia@sriServices.co.uk if you have any questions. #SRI #SustainableInvestment #ESG #IFA

Sign Up

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.

City and Financial Conference: 'The Regulation of Asset Management' Attending this Summit will enable you to drill down into the implications of these radical events for your firm and provide you with practical tools and strategies to ensure you are at the vanguard of regulatory compliance.

Key topics will include:

What is the FCA’s approach to regulation of asset management and how will you be affected by the reforms?

What is the role of fund managers in the corporate stewardship debate?

To what extent has the increased focus on culture and conduct affected the industry?

Speakers include: Nick Miller, Head of Asset Management, Financial Conduct Authority

Delegate Fee: £645 + VAT* *Use discount code ‘RAM3PIMFA’ to receive a 20% discount off the above fee.

Find out more at: https://www.cityandfinancialconferences.com/RegAssetMan

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