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PIMFA Fortnightly News Bulletin - 13th July 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 wins again! Following on from our success at the In2 Sabre awards for ‘Best in Identity Branding’ in April of this year, we are delighted to announce that last night PIMFA, in conjunction with our friends at HUB UK, won the Trade Association Forum (TAF) award for Website of the Year at their annual ceremony, held at the historic Drapers Hall in London. We would especially like to thank HUB UK for their contribution to the design and development of the site and the systems involved. The event, now in it's 16th year and formally supported by the Department for Business, Energy and Industrial Strategy recognises, rewards and promotes best practice amongst Trade Associations in the UK. To view the full TAF press release, please click here.

PIMFA announces Fintech Competition Winners

PIMFA has recently announced the four winning entries to our Fintech Competition, one of the only forward-thinking competitions of it's kind. Their exciting presentations describe hugely helpful solutions to our industry and they will now be able to engage with an audience full of prime industry leaders at the PIMFA Fintech Conference, being held in London on the 12th September, 2018. For more information on the Conference, please click here.

FCA changes the face of retirement The FCA has published its final report into the retirement market post the introduction of pension freedoms. The proposed remedies contained within the report will fundamentally change the way large proportions of the population decumulate their pension pots in future and contain a number of opportunities and challenges for the advice community. PIMFA has been particularly happy to see the introduction of wake up packs at 50 being introduced as well as the proposed introduction of investment pathways for disengaged savers. Going forward we will be seeking to engage the Regulator and government on the content of these wake up packs with the aim of directing or signposting more people towards advice rather than just the guidance service. The remedies outlined in this report are focused on the non-advised market but we do not believe that it is tenable for the government or regulator to assume that consumers will always be or should always be non-advised There are a number of issues outlined in the report that we are keen to get feedback from members on: - A reticence to impose a charge cap. PIMFA has long argued that the imposition of a charge cap is ill suited to the Regulator’s stated ambition to encourage innovation in the retirement market. - The creation of a drawdown comparator tool. We are particular keen to hear from members about the potential efficacy of such a tool. Our initial thoughts point to the fact that such a tool would be hard to effectively compare given a lack of standardisation among drawdown products. - The introduction of annuity quote comparisons. The FCA wants individuals to be able to shop around but our initial view is that ensuring that providers are obliged to include other quotes from rival providers is an unnecessary administrative burden that will increase the cost of services more than it would increase competition in the market. - Extending investment pathways to SIPPS. We do not believe that guided investment pathways should be extended to SIPPs. In our view SIPP savers tend to be a different

demographic to those targeted by the ROR reforms and the imposition of investment pathways to schemes without the scale of large scale providers would be uneconomical for them. Finally, we believe that guided investment pathways are a necessary intervention in the market to dampen the probability of consumer detriment. However, we remain concerned that the introduction of guided pathways could replicate the behaviour of consumers not engaging on the open market as they did before the introduction of freedom and choice. We believe that the right balance should be found between protecting disengaged consumers and encouraging choice. This will be the centrepiece of our engagement efforts going forward as we take this to government and the regulator. If you have any questions or input on the above, please do get in touch with Simon Harrington.

FCA’s proposals on SM&CR The FCA published on the 4th July its near final rules on the extension of SM&CR to regulated firms. These include: - CP 18/19 “Introducing the Directory”. This CP outlines FCA’s proposed new Directory to help identify the key individuals working in financial services, with the ultimate aim to help consumers find information about individuals working for an authorised firm. - PS 18/14, “Extending the SM&CR to FCA firms”. This PS contains the near final rules on the extension of SM&CR following feedback from CP 17/25 and CP 17/40. - PS 18/16, “Final Guidance: the Duty of responsibility” . This PS reflects the feedback received from CP 17/42. The FCA has also published a guide for FCA solo-regulated firms that can be accessed here. PIMFA will attend a briefing with FCA on 11th July to discuss these proposals in detail and will be reviewing their impact in the coming weeks. If you’re interested in discussing these in detail please contact Ian Cornwall or Ana Gallego

HMT– extension of SM&CR to solo regulated firms HM Treasury has now confirmed that the Senior Managers and Certification Regime (SM&CR) will come into force for financial services firms regulated by the Financial Conduct Authority (also known as solo-regulated firms) only from 9th December 2019. For further information, please contact Ana Gallego.

Transfers & Re-Registration Industry Group (TRIG) On Friday 29 June, the Transfers & Re-registration Industry Group (TRIG), comprising representatives from ten major industry trade bodies, published its final industry framework on transfers and re-registration for firms to work on delivering fast, efficient transfers for the benefit of clients. Along with the Framework, TRIG has published a Q&A document that responds to some wider questions raised during the project. If anyone has any questions about TRIG please contact Kevin Sloane -

Heads of Financial Planning and Advice Forum This group meets quarterly and is a less formal way to meet sector peers who also lead investment management and/or financial planning advice businesses. The agenda is Member driven and touches on a range of high profile topics relevant at the time that are working concerns for the sector. It’s a great opportunity for a full and free discussion in confidence between those who attend and set out how issues have been approached in a collegiate way that respects that firms seek the best results for their own clients and business, but also that it is in the interests of all firms that the sector works well and is able to response to client needs. Defined benefit transfers are a recurring topic as the regulatory landscape shifts and the FCA adjusts from its traditional reactive stance to using its authority more proactive to prevent consumer harm rather than redressing it after the event. The Members have fed back on a range of issues including the risk of a levy on DB transfers advice firms, triage recommendations and contingent charging which we hope to see addressed when the FCA completes its next consultation process on these issues. To view more on this Forum, please click here.

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

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 five 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 Financial Advisers Market In Numbers (FAMIN) report this year. Your help is most appreciated and we look forward to your responses. To access the survey, please click 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: • • • • • •

PIMFA & industry representatives come together to tackle pension & investment transfers challenge PIMFA Welcomes FCA’s Final Retirement Outcomes Review New draft template aims to help distributors meet their MiFID II responsibilities PIMFA Launches Members Manifesto Parliament Debates Withdrawal Bill Amendments: PIMFA Reiterates Call For 3 Phase Approach And 1 Step Brexit PIMFA urges regulator to consider the unintended consequences of Contingent Charging ban

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 Single Ticket: £250 + VAT Table hosting opportunity: £2,500 + VAT If you’re a firm with less than 10 CF30s individual tickets are discounts, costing £150 each. Please email 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? FCA Investment Platforms Market Study - Interim Report The FCA has informed us that the Interim Report for the Investment Platforms Market Study will be published on 16th July 2018. While this will be of greatest relevance to firms falling within the FCA's definition of a "platform service provider", it is also likely to be of interest to firms that offer services similar to platforms (e.g. online access to retail investment products) and to advisers and wealth managers that use platforms on behalf of their clients and/or to distribute their own investment solutions. At a meeting in February, the FCA indicated that it is focusing on three areas in terms of "competitive outcomes", namely fund and platform fees; platform costs and quality; and model portfolios, both those managed/offered by platforms themselves and those managed by wealth firms and made available to clients/advisers via platforms. For more information, please contact Sarah McGuffick

IDD Update – EIOPA draft Regulatory Technical Standards for PII and financial capacity of intermediaries On the 28th June, EIOPA submitted to the European Commission draft Regulatory Technical Standards adapting the base euro amounts for professional indemnity insurance and financial capacity of insurance intermediaries. The base amounts have been adapted taking into account the changes in the European index of consumer prices which increased by 4,03% in the relevant period. The Commission is expected to adopt the Regulatory Technical Standards as a Delegated Regulation by the end of summer 2018. To read the full text of the draft Regulatory Technical Standards, please click here.

Record number of fake HMRC websites deactivated New figures show that HM Revenue and Customs (HMRC) requested a record 20,750 malicious sites to be taken down in the past 12 months, an increase of 29% on the previous year.

Despite a record number of malicious sites being removed, HMRC is warning the public to stay alert as millions of taxpayers remain at risk of losing substantial amounts of money to online crooks. The warning comes as Scam Awareness month, run by Citizens Advice, draws to a close. To view the full HMRC press release, please click here.

Rise of the robots? Don’t forget the manual override ‘Robo-advisers’ are filling the perceived advice gap in the UK. The FCA’s recent review found suitability failings in many online services. Shortcomings were around assessing knowledge and experience, investment objectives and capacity for loss, with some firms over-reliant on self-assessment. Six steps to getting suitability right: • Make sure the new service meets the needs of the specific target audience. • Be clear about the service – is it discretionary or advisory? What are the implications for potential clients? • Get your ‘kick-outs’ right to filter out clients whose needs cannot be catered for. • Make sure your client profiling replicates the intellectual assessment normally done by the adviser. • Have a ‘manual override’ - a real person checking suitability recommendations. • Test, test, test – pre and post-launch so everything works as intended, and delivers suitable outcomes. To view the full article, please click here.

Funded Scottish Returnship Programme Women Returners is launching the Returners to Business Services Scotland programme, which will enable Scottish employers to access and support 1-5 returning professionals in Edinburgh and/or Glasgow in a highly cost-effective way. This cross-company initiative is funded by the Scottish Government. It follows the success of our Returners to Financial Services Scotland Programme which we launched earlier this year in partnership with 12 leading financial companies including RBS, Standard Life, Prudential, BlackRock and CYBG. All participating companies have reported that the programme has been a success for their business and 75% of the 28 returners have been offered ongoing roles.

The Returners to Business Services Programme: • Employers will be within business services including financial, legal, consultancy and fintech. • The placement will run for 16 weeks, November 2018 to February 2019, and will be driven by employers’ recruitment needs. • Women Returners will provide employers with expert consultation, best practice guidance, promotional and manager support, including a returnship toolkit, programme advertising and line manager training. Returners will receive our Career Returners Coaching Programme through four group workshops. The full cost of this is covered by the government funding. • Participating employers will provide CV worthy work (either a project or BAU role) and an internal buddy and mentor, and will pay the returner salary at a professional level. There will be a good possibility of permanent employment at the end of the programme. The Business Benefits: • Tap into the wealth of returner talent in Scotland. We received over 450 applications for our financial services programme and many employers hired additional returners based on the high calibre of talent that they met with at interview stage. • Increase diversity (age/gender/experience). This programme, which is aimed at professional women, enables you to target business areas where you would like increased diversity (we filled a number of placements in IT, where it is notoriously difficult to attract women). • Refill the female talent pipeline and improve the gender pay gap. Bringing these experienced women back in at a level in line with their experience helps to build your female talent pipeline at mid/senior levels and to address the gender pay gap. • Pilot a returnship in a cost-effective way. The programme enables you to trial a returnship on a small-scale with funded support. Places are limited. If you are interested, contact Hazel Little asap for more information.

Opportunity to sponsor a Show Garden at the RHS Hampton Court Flower Show 2019 GP Garden Design are offering the opportunity to sponsor a Show Garden at the RHS Hampton Court Flower Show 2019. With a combined national broadcast reach of over 56 million and a reach of over 77 million in print and online media this is a marketing channel that few know about. Along

with 2.5 hours of dedicated BBC television, watched by over 1 million, there is extensive media coverage of each garden and its sponsor through national and international press. There are also many opportunities to market to the public that attend the show, over 140,000 predominately ABC1. The garden can focus on a particular product or new marketing initiative giving you rare marketing platform, as well as aligning yourself with the British institution that is The RHS. Gary Price Garden Design has experience of designing and installing successful Show Garden at RHS Hampton Court Flower Show, we won a Silver Gilt Medal in 2016. We are looking for a sponsor who we feel is suited to our brand for a Show Garden in 2019. Depending on your brand requirements the cost of sponsorship will be between £25k £75k. If you are interested in finding out more please contact Nicci Price, Head of Marketing on

Latest Industry Events The Asian Banker - UK Digital Finance Leadership Programme 23rd-27th July 2018 London

The Asian Banker Digital Finance Leadership Programme in London is designed as a five-day programme for senior managers, board members and chief executives from around the world to interact directly with key players defining the industry today. Delegates will be provided with an exclusive all-rounded set of line-ups – from Fintech workshops and panel discussion with London’s venture capital community, to 13 site visits to organisations such as Startupbootcamp Fintech, London Stock Exchange, Barclays’ Rise London and many more. 10% discount will be given to all representatives and members of PIMFA (Promo-code: UKDFLPspecial). The registration fee includes accommodation. Please contact Orlanda Poblete at for more details and group discounts.

Please click here to see full agenda. 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. Follow Us

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PIMFA Fortnightly News Bulletin 13.7.18  
PIMFA Fortnightly News Bulletin 13.7.18