PIMFA Bulletin - 8th March 2018

BULLETIN 8th March 2018 Dear Members PIMFA Bulletin is a fortnightly e-newsletter delivering a snapshot of the latest news and current affairs from within the industry and PIMFA. APFA and WMA merged to become PIMFA (the Personal Investment Management and Financial Advice Association) on 1st June, 2017

WHAT IS PIMFA WORKING ON? PIMFA & GDPR In line with GDPR requirements PIMFA members will be required to opt in to our communications before 25th May if they wish to continue receiving communications from us. You can do this by ticking the opt in GDPR box found in your website preference centre (you need to be logged in to do this) or by clicking the preference centre link at the bottom of any of our emails.

Please note: To ensure your details are protected PIMFA website password protection requires an eight digit password using a mix of capitalisation, numbers and punctuation. If you don’t have a profile set up with us or your log in details please contact us.

New Prudential regime for Investment firms (excluding Personal Investment Firms) Our working party continues to meet to address the above topic. We recently met with FCA to discuss the proposals and a number of related topics. Aspects that we intend to comment on include the treatment of client money, the threshold between Class 2 and Class 3 firms and the weighting of operational risk and the use of Pillar2 measures, including SREP.

Women in Finance Response PIMFA recently submitted written evidence to the Treasury Select Committee ‘Women in Finance’ inquiry. Focusing on barriers to entry, career progression and the value to the financial sector of a greater gender balance, PIMFA makes a number of recommendations for the regulator, Government and the industry.

They address, amongst other things, the need to encourage businesses to create returnships programmes, the need to promote the wealth management and financial advice as a sector for young female talent, and the importance for government to promote financial education and careers in schools.

The full response can be found here

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 via our committees, working parties and industry forums.

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 all the time 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.

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PIMFA response to CP 17/40 Transitioning FCA firms and individuals to the SMCR: February 2018

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PIMFA’s response to CP17/37 Consultation Paper on Industry Codes of Conduct and Discussion Paper on FCA Principle 5: February 2018

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PIMFA's response to the House of Commons Treasury Committee Women in Finance inquiry: February 2018

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PIMFA’s response to FCA Mission: Our Future Approach to Consumers February 2018

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PIMFA's response to PLSA's Hitting the Target proposals: Delivering better retirement outcomes January 2018

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PIMFA’s response to CP17/36 Reviewing the funding of the Financial Services Compensation Scheme (FSCS): January 2018

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PIMFA's response to PS17/25: Consultation on retiring guidance which will be superseded by MiFID II: January 2018

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House of Commons Treasury Committee The UK's economic relationship with the European Union inquiry (part II): January 2018 Latest PIMFA Consultation Papers

What is coming up in PIMFA? PIMFA GDPR Conference 2018 Thursday 22nd March 2018, 09:00-17:00 Clyde & Co., St. Botolph Building, 138 Houndsditch, London EC3A 7AR CPD: 5 hrs With the upcoming GDPR enforcement date impending, PIMFA is hosting a full-day GDPR Conference to help firms meet their data protection obligations. The Regulation, which represents the largest shakeup in data privacy law for over 20 years, will come into force across Europe on 25th May 2018.

This deep dive one-day event is dedicated to explaining the practical implications of the new General Data Protection Regulation, and to help organisations prepare for its requirements. The PIMFA GDPR Conference will focus on the impacts GDPR will have on business critical processes and provide a framework to keep your organisation GDPR compliant.

Sign Up

PIMFA Annual Financial Planning Dinner Tuesday 8th May 2018, 18:00-22:00 Middle Temple, Middle Temple Lane, London, EC4Y 9AT The event will be held at the prestigious Middle Temple in central London and will be a continuation of the APFA Annual Dinner welcoming both former APFA and WMA members. The event has been the high point in the financial adviser social calendar and provides a chance for like-minded professionals to discuss and share views as well as entertain guests.

For more information about table hosting opportunities, please contact Richard Adler at richarda@pimfa.co.uk Sign Up

PIMFA Associate Members Briefing and Reception Monday 12th March 2018, 17:30 - 19:30 Farrer & Co., 66 Lincoln's Inn Fields, London WC2A 3LH Free (Members) Exclusively designed for PIMFA Associate Members, this event will provide an opportunity to learn about the issues currently impacting on the UK Wealth management and Financial Advice community.

We will explore topics such as regulation, operations, taxation etc. and provide an opportunity to discuss with PIMFA staff specific issues important to the membership. To view the agenda and for more information, click here.

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What's happening in our industry?

ESRB calls for legislative action to address systemic risk related to investment funds Recommendations on leverage and liquidity in investment funds. The Report builds on the work of IOSCO and the Financial Stability Board, which have examined fund liquidity and risk management in recent years.

The ESRB recommends making a number of liquidity management tools available to fund managers to assist with redemption pressures in times of low market liquidity. It calls on the Commission to propose legislation that includes the ability to impose fees on redemptions or to temporarily suspend them altogether, and addresses the role to be played by ESMA in coordinating such action. The legislative follow-up should also include measures to limit the use of liquidity transformation in open-ended AIFs and on UCITS reporting for the purposes of stress testing. The Commission is asked to put forward a legislative proposal by the end of 2020.

The ESRB further calls on ESMA to provide guidance on how fund managers should conduct liquidity stress tests as well as on the design, calibration and implementation of macro-prudential leverage limits. Recommendations aimed at ESMA are due to be delivered to the ESRB by the end of 2019.

Brexit - Uncertainty in Transition Michel Barnier gave an impatient press conference on Wednesday 28 February as he presented the first draft EU text of the Withdrawal Agreement covering all withdrawal issues including the Irish border and the transition agreement. He reflected frustration with the slow negotiations, hoped this draft would speed them up, and encouraged the UK to propose amendments.

There has been subsequent controversy about the border question because of Option 3 on North/South regulatory alignment and a UK border in the Irish Sea, but according to the Commission all options remain on the table with the other two only operational once discussions on the future relationship begin after the 23 March Council Summit. That Summit will be critical for financial businesses with crossborder operations into other EU member states.

If nothing much comes out of it there will be substantial triggering of contingency plans to move staff and operations out of the UK for EU business. This will concentrate the minds of politicians as they see jobs, growth, and the tax base disappear abroad.

Latest Industry Events

Private Wealth Europe Forum 17th April 2018 Four Seasons Hotel George V, 31 Avenue George V, Paris, 75008

The Private Wealth Europe Forum is the flagship meeting for our private wealth series in the EMEA region and the leading wealth management, wealth planning and international investment management meeting for private banks, HNWIs, wealth managers and family offices from Europe. Please book here.

Morningstar Investment Conference 1st & 2nd May, 2018 Royal Lancaster London, Lancaster Terrace, London, W2 2TY

Registration is now open for the Morningstar Investment Conference. PIMFA members qualify for a discount rate of just £35 +VAT for the two-day conference.

The agenda will cover a wide range of investment vehicles, plus sessions from academics, industry practitioners, experts from the fund management industry and Morningstar’s very own thought-leaders.

Please note: The full price to attend is £225 +VAT, but Morningstar are offering PIMFA adviser and wealth manager members tickets for £35 +VAT. Please book here and quote the discount code: MICUK18PIMFA

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