Pimfa Bulletin 28 6 18

PIMFA - Building personal financial futures

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PIMFA Fortnightly News Bulletin - 28th June 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.

What is PIMFA working on?

PIMFA Launches Members Manifesto At our full-to-capacity Summer Drinks Reception at the House of Commons last week, PIMFA launched our Members' Manifesto, which lays out the organisation’s 5-year approach to creating the optimal operating environment for member firms to deliver services and meet client needs.

Resulting from extensive consultation amongst our members, at the core of the Manifesto are 6 pillars summarising the areas of focus identified to achieve the vision for the sector.

These include designing the sector for the future, enabling access to it, encouraging its digital business transformation through a sector-wide digital strategy, ensuring its appropriate and proportional regulation, developing robust and thriving retail investment markets and facilitating proper business security and protection.

Detailing both PIMFA commitments and ‘calls to action’, this cornerstone document reflects the shifting landscape for our industry and all who work within it – from those on the front line giving assistance to individuals, families, charities, pension funds, trusts and companies, to stakeholders from HM Government, Regulators, the media and beyond.

To read the PIMFA Members' Manifesto in full, please click here.

PIMFA reiterates call for 3 phase approach and 1 step Brexit Parliamentary debate about the Withdrawal Bill and amendments to it has raised again the issue of Deal vs No Deal.

Decisions are at present a matter for Government and Parliament and PIMFA has no wish, at this juncture, to intervene. It has, however, repeatedly made it clear following the referendum that a ‘hard’ or ‘no deal’ Brexit would bring abrupt change and disruption to business flows and relationships that should be avoided.

PIMFA again reiterates the case for a 3-phase approach and a 1-step Brexit to ensure that it features in current thinking, thus maximising the prospects of protecting retail investors, who are frequently the voters in whose interests Parliamentary and Governmental processes are intended to operate. A ‘no deal’ result would be contrary to such an outcome and strongly increase the risk of damage and detriment to business and consumer alike.

To read the full Press Release, please click here

To access the PIMFA Brexit section, please click here

HM Treasury and Financial Conduct Authority preparation for Brexit On 27th June, HM Treasury announced its approach to financial services legislation under the EU (Withdrawal) Act. This can be accessed by clicking here.

Separately, the FCA published a statement providing firms with an update on how they are preparing for the UK leaving the European Union – you can access the statement by clicking here.

PIMFA will be looking at these in detail, if you have any queries on this topic please contact Ana I. Gallego.

PIMFA Digital Strategy Survey Digital strategy and innovation plays a pivotal role in the development plans of today’s wealth managers and financial planners.

Firms are now asking PIMFA to explore digital technology change in our sector, so we have launched a technology questionnaire, which will help us build a clear picture of where firms are on their digital journey.

The questionnaire is anonymous and we will not share your responses with anyone. The survey output will be a benchmark report showing the results and enabling firms to gain a greater understanding of what is happening across the sector and where they are positioned.

Would you please complete the questionnaire by end of July 2018.

To access the survey, please click here

New draft template to help distributors meet their MiFID II responsibilities PIMFA and TISA (the Tax Incentivised Savings Association) yesterday published their ‘MiFID II Feedback Template’ alongside a ‘Distributor Reporting Useful Guide’*.

The draft guide, developed by a cross industry working group consisting of TISA, PIMFA, the Investment Association, leading asset managers and distribution businesses and chaired by First State with a deputy chair from Deutsche Bank Wealth, aims to give firms across Europe a clear way to meet their MiFID II responsibilities. In addition to the guide,

a comprehensive Q&A document will help distributors make compliant returns to asset managers.

Market feedback on the proposed template is open until the 12th July. Once all comments have been received, the working group will meet with the Financial Conduct Authority (FCA) and the European Securities and Markets Authority (ESMA) to ensure the regulators are aware of the approach before issuing the final versions.

PIMFA & TISA also announced their call for firms across the sector to join a user group to test the template and ensure that it can be meaningfully incorporated into firms.

To access the Distributor Reporting Useful Guide, please click here

To download the MiFID II Feedback Template, please click here

PIMFA Position Paper and Response to the European Commission Sustainable Finance Initiative – MiFID II suitability requirements PIMFA recently published a position paper on the Sustainable Finance Initiative regarding MiFID II suitability requirements. This paper follows the European Commission’s Action Plan for Sustainable Growth and focuses on the extent and impact of these on wealth managers and financial advisors. In summary, PIMFA calls for the need to review the reference in the text to ‘the most suitable products’, specify that ESG considerations should not override existing suitability obligations, and the potential issues this may cause to existing clients in updating their ESG preferences.

The full paper can be accessed here

If you would like to know more about PIMFA’s work on Sustainable Finance, please contact Ana I. Gallego

PIMFA Financial Adviser Short Survey 2018 If you are a Financial Advice firm we are very keen to hear your thoughts.

We are trying to gain some colour as to what are the main concerns of Financial Advisers

this year, in terms of time and cost. We also wish to know of the opportunities that lie ahead for firms too. This survey is short and could effectively be answered in under 5 minutes. Your participation is greatly appreciated and will help give us clarity on where you sit amongst peers in terms of constraints and growth opportunities. All data provided will remain anonymous.

We are mindful that our interaction with the Financial Advice community is effective and meaningful so that in particular we can give added qualitative weight to the FAMIN report this year. Your help is most appreciated and we look forward to your responses.

To access the survey, please click here

Briefing Note on Beaufort Securities We have had a considerable number of enquiries regarding Beaufort Securities who were declared to be in default in March 2018.

If you are a PIMFA member you can log in and read the latest PIMFA Update article containing our briefing note by clicking 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 through 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.

Read the latest PIMFA Consultation Papers Here

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 recent Press Releases Here.

Our latest releases include; •

New draft template aims to help distributors meet their MiFID II responsibilities

•

Parliament debates Withdrawal Bill amendments: PIMFA calls for 3-phase approach and 1-step Brexit

•

PIMFA urges regulator to consider the unintended consequences of Contingent Charging ban

•

PIMFA responds to new ONS data on automatic enrolment

•

PIMFA comments on FCA CP18/11: Reviewing thwe funding of the Financial Services Compensation Service

What is coming up in PIMFA? Annual Financial Adviser Dinner 2018 Tuesday 4th September, 18:30 – 22:30 Middle Temple, London The PIMFA Annual Financial Adviser Dinner brings together over 180 leading industry figures, senior politicians, journalists and regulators. This exclusive event provides an excellent opportunity for industry professionals to network with colleagues, make important contacts and discuss with peers the future of the profession with the industry today.

Keynote Speaker: Sir Steve Webb, Director of Policy and External Communications, Royal London

Early Bird single tickets (booked before 30th June 2018) are ‘Buy One Get One Half Price’ when entering discount code: earlybird-bogohp (please note, this code can only be used to purchase a maximum of four places per firm).

If you’re a firm with less than 10 CF30s, individual tickets are discounted, costing £150 each. Please email events@pimfa.co.uk to book this ticket.

For more information and ticket prices, please click here.

Sign Up

Associate Members Briefing and Reception Tuesday 11th September 2018, 17:30 – 19:30 London (Venue TBC) 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.

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.

Attendees will also benefit from networking opportunities with other industry professionals over a drinks reception.

Sign Up

PIMFA FinTech Conference 2018 Wednesday 12th September 2018, 09:00 – 17:00 London (Venue TBC)

Our FinTech Conference: Utilising Digital in Investment Management is a one-day event, providing attendees with a platform to explore the advantages and potential risks of bringing together technology and the investment management and financial advice industry.

Industry experts will discuss the latest trends alongside demonstrations by competition winning FinTech start-ups, highlighting emerging revolutionary ways of thinking and working.

Sign Up

PIMFA Annual Summit 2018 Wednesday 31st October 2018, 08:30 – 19:30 ETC Venues Bishopsgate, 155 Bishopsgate London 6 CPD Hrs The PIMFA Summit 2018 is an excellent opportunity to investigate and gain a comprehensive understanding of the issues that impact upon the investment management and financial advice sector and provides access to debate on the key topics facing our industry.

Book now to hear from some of the leading figures across the world of business, finance and politics such as advisers to HM Government, FCA and the former British Official to the European Commission.

*Keynote Speaker Announced* Sir Trevor McDonald OBE, Veteran ITN Presenter

Book Now

What's happening in our industry?

Bovill: Suitability ‒ is everything under control?

According to Bovill's recent survey of wealth management firms, about a third of them don’t have a regular client file review programme in place to check that they can consistently evidence suitability.

Lots has been written about the evidence you need on a client file to demonstrate that investment portfolios are suitable. Less has been written about the governance and controls that such businesses use to check that the selected service and strategy is suitable for clients, and that portfolios are being managed in line with the mandate given.

Their survey focused on 30 firms offering discretionary and advisory portfolio management with between them, assets of over £200bn and over 600 investment managers.

The survey asked about their first and second line controls, covering client file reviews for suitability; compliance monitoring; effectiveness of client information refresh processes; consequences for staff whose files fail suitability checks and where ultimate responsibility for suitability lies.

The responses show there is still work to be done: •

Many small and medium sized firms don’t appear to be reviewing enough client files to

evidence consistent suitability standards •

Some firms aren’t yet directly linking suitability standards to remuneration and

incentives •

Many aren’t confident that their periodic KYC refresh process is consistently effective

in evidencing ongoing suitability •

And as SMCR approaches for investment firms, many need to agree who really owns

suitability in the firm.

To view the full report, click here.

Panacea asks: Is it all still Pete Tong at the FOS? Since 2011 Panacea Adviser has conducted research via a simple survey to gauge what advisers think about service levels and standards delivered by the FOS, in particular looking at their processes and the fairness of the system.

Two years have passed since the last one, and we want to know, will 2018 see any improvement? Could you please complete the anonymous, 5-minute survey and share the link with your colleagues?

To access the Panacea FOS 2018 Survey, please click here

Latest Industry Events GDPR Conference Aberdeen 28th June 2018. 09:00 – 15:30 The Conference will feature a series of seminars focusing on key areas of the General Data Protection Regulation (GDPR). The seminars will include practical exercises, tips and suggestions to help your organisation to understand and implement the GDPR.

To book your place please email richarda@pimfa.co.uk

Sign Up

The Protection Review Conference 2018 Thursday 12th July 2018, The London Landmark Hotel CPD:up to 5 hours “Young at Heart: is the protection industry ready to come of age?”

This year our conference will consider how to make protection more relevant and engaging. We will start by considering how we do this for younger people looking at what millennials want and need from the protection industry and also contemplate opportunities for younger people to work within the sector.

Our hot topics session will consider ways in which the industry can prepare itself in the face of legislative changes, how we can protect ourselves from making mistakes that others have made and how we can promote the good that we do. Finally, our Simplexity

session will compare and contrast simple and complex products and processes in the protection market and examine how technology can make it easy for customers.

10 complimentary places for PIMFA members allocated on a first come first served basis.

For more information, the conference agenda is available here

To register for the event please email jo@lebeauvisage.co.uk and quote 'PIMFA'

Sign Up

View all the latest Industry Events on our website here.

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

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