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PIMFA NEWS BULLETIN | 1 May 2020 Welcome to your Weekly PIMFA Bulletin Grab a coffee and take 10 minutes to read this week's highlights and key issues affecting you and your firm
WE ARE IN THIS TOGETHER Dear Nigel,
We hope you and your loved ones are safe and well during this challenging time. Due to COVID-19 PIMFA continues to work remotely and operate on our members behalf and represent your interests.
We remain committed to delivering as much information as possible to our members and this Bulletin contains the latest news on the impact of the virus and other key issues
PIMFA are working on for our members. If there is anything we can be of assistance with, please contact us at enquiries@pimfa.co.uk and we will direct your query to the person best able to help you.
Best wishes The Team at PIMFA
COVID 19 & What's happening in PIMFA
Brexit: Negotiations
PIMFA Podcasts & Webinars Library
The second round of UK – EU negotiations on the future relationship
Each week we are running our members
ended last week with both sides
only Webinar Wednesday on key topics
acknowledging that “limited progress was
impacting our members due to COVID
made in bridging the gaps.” The UK and
19. This week we discussed investment
EU have not even agreed on what kind of
scams, members can watch the webinar
deal they are aiming for. While the UK is
on demand or members can watch this
looking for looser arrangements, the EU
and the past 5 webinars on the
wants a comprehensive deal covering all
government reactions and FCA updates,
areas.
or read the accompanying briefing note here.
The EU’s Chief Negotiator Michel Barnier described progress in the talks as
We are also running podcasts, webinars
“disappointing” and accused UK
and training courses, open to all, on topics
negotiators of refusing to engage on the
such as wellbeing and vulnerable clients.
most important issues for the EU. Four areas in particular are proving difficult:
Recordings of past podcasts and webinars, on topics such as Cyber
•
the level playing field
Resilience in the face of COVID,
•
fisheries
hallmarks of effective compliance,
•
governance
SM&CR etc, can all be accessed in our
•
criminal justice cooperation
learning library.
Valuable negotiating time has been lost Communicating Safely During
over the past month because of the global
COVID 19
pandemic but the UK Government continues to rule out an extension of the transition period, due to end on 31
As firms moved to remote working, video
December 2020. The next round of talks is
conferencing became essential and there
due to be held during the week beginning
was a rush to dust off existing applications
11 May. For further information, please
and download freeware from the internet.
email Maja Erceg.
This was quickly followed by waves of stories spreading panic about the risks of
PIMFA Investment Scams
virtual meetings. As a result, Mitigo has
Campaign -
produced a brief summary of the guidance
Recent Scam Examples Needed
they give clients to stay secure, which can be read here.
As part of our Financial and Mental
Further, as the National Cyber Security
Wellbeing campaign, we have launched
Centre warns businesses implementing
an initiative to keep savers safe from
remote working practices to ‘be aware of
scams, especially in light of COVID. This
email scams and encrypt/protect sensitive
initiative will provide consumers with
data’, Beyond Encryption has taken the
information on how to spot and avoid
decision to offer FREE and fully featured
scams, as well as warnings about the
user licences for a period of 2 months to
latest scams that we know about, among
enable you to safeguard the data within
a whole host of other information. If you
your emails. More information is available
are aware of any scams please let us
here.
know by contacting enquiries@pimfa.co.uk. Commons Brexit Committee Hears Evidence from Michael Euroclear Crest Courier and
Gove
Sorting Service (CCSS) Giving evidence to the House of As you may know, Euroclear announced
Commons Brexit Committee this week,
earlier this year that the existing
Cabinet Minister Michael Gove said that
arrangements for the Crest Courier and
the coronavirus pandemic will
Sorting Service (CCSS) are under review.
“concentrate the minds” of the EU’s Brexit negotiators and “reinforce the vital
The courier company TNT have advised
importance” of bringing the negotiations to
Euroclear that they don’t wish to renew
a conclusion and secure a trade deal by
their contract for CCSS in December 2020
the end of this year. Gove refused to say
and Euroclear have started to explore the
whether the UK would walk away from the
options for replacing the current CCSS
negotiations if there is no sufficient
facility.
movement by the end of June, when the two sides are due take stock of the
One of the options under consideration is
progress made in the talks.
a digital solution which would involve firms in scanning certificates and transfers and
Gove also said that the UK is not asking
sending them electronically.
for a new or tailor made agreement but a series of 'off-the-peg' arrangements that
A number of PIMFA members have
replicate what the EU has with other
indicated that a digital solution would be
countries. As for the four areas that have
their preferred option, but there are legal
proved challenging so far, the level
issues for the company registrars, who
playing field, fisheries, governance and
currently require physical receipt of ‘wet’
criminal justice cooperation, Gove said the
signatures and original certificates before
UK will not budge on any of the issues.
they can update the share register. There
The Prime Minister’s official spokesman
is also the issue of liability – which party is
also called for “political movement on the
liable at the different stages of this
EU side” to move negotiations forward.
process in the event of a fraud or lost paperwork?
We have recently formed a working group
Share Your Stories - What is Your Firm Doing During the Crisis?
on this issue and Euroclear have kindly offered to give a fortnightly conference call
How is your firm is adapting to continue
update on their progress in identifying a
delivering your services and finding ways
solution.
to help support the national effort? Please share your stories with us by emailing us.
If you or a colleague would be interested
These examples are very helpful when it
in joining the fortnightly update calls,
comes to showcasing the profession, the
would you please email
value you add and the difference you
MichaelC@pimfa.co.uk and we will add
make.
your details to the working group database.
PIMFA Parliamentary Briefing
Furthering our commitment to COVID-19 Information Web Areas
representing our members' views to Parliament, PIMFA recently met with the
PIMFA have public and members only
new Labour Shadow Financial Services
web areas that provide the latest
Minister Pat McFadden to brief him on the
information on COVID-19. For members
sector’s key issues, the impact of COVID-
only, they can visit their web area to
19 and the importance of advice during
access webinar recordings, meeting
these difficult times.
notes, latest global response tracker, latest health statistics, updates from the CBI and much more.
Webinar: What Great Service Looks Like
Financial Adviser will be hosting a free webinar - 'What Great Service Looks Like' - on Wednesday 6 May at 3pm, discussing how service provision has changed over the past decade, what advisers expect and how great service provision leads to a better customer outcome.
Guests on the panel will be: Simon Harrington, senior policy adviser for PIMFA; Isobel Langton, chief executive of Royal London Intermediary; and Elspeth Rothwell, UK chief executive of Vested. You can register for this webinar here.
Environmental, Social and Governance (ESG) and Sustainable Finance
The European Securities and Markets Authority (ESMA) has released its consultation on regulatory technical standards (RTS) for ESG Disclosures with a response due on 1 September 2020. It is worth noting that most EU sustainable finance-related regulations are due to come into force from 2021, which is after the current date at which the UK/EU transition agreement ends (31 December 2020).
Therefore, it remains unclear how these EU regulations will apply in the UK and firms ought to prepare on the basis they will be implemented as they are, either as part of a final agreement or the UK (FCA and HM Treasury) will implement equivalent UK legislation that would not create a two tier system for financial services in the area of sustainable finance.
Further clarity around this should develop in the coming months.
In the meantime, if you have any queries or comments on the below, or wish to join PIMFA's Sustainable Finance Group where these proposals will be discussed, please contact Des FitzGerald.
Further Information •
Joint European Supervisory Authorities (ESA) consultation on ESG disclosures can be found here.
•
Joint ESA consultation on ESG disclosures - response form can be found here.
•
ESAs consultation on ESG disclosure rules can be found here.
•
ESAs consultation on ESG disclosure rules press release can be found here.
LATEST PIMFA BLOGS & PRESS RELEASES
•
PIMFA welcomes Rt. Hon. Jim Murphy to Webinar Wednesday
•
PIMFA to provide consumer advice on how to avoid scams as part of Financial and Mental Wellbeing campaign
•
Blog: Tech and the fight against Financial Crime
•
PIMFA launches first ever Virtual Festival in June
•
PIMFA welcomes FCA regulatory forbearance in wake of coronavirus outbreak
•
Blog: What does Market Abuse REALLY look like for Wealth Managers
EVENTS & LEARNING Due to the COVID-19 crisis, it is with regret that we have decided to postpone all physical events until further notice. Workshops will still be taking place online via Zoom or may be postponed. The decision has not been taken lightly; however, safeguarding the health and wellbeing of our attendees must take precedence.
Webinars and podcasts will be continuing and will be delivering content online in the coming weeks. We will be updating the website regularly and scheduling new dates. If you have any queries, please contact us at events@pimfa.co.uk.
VIRTUAL FEST We are delighted to announce the launch of Virtual Fest; a live, 2 day online learning experience covering topics such as Compliance, Cybersecurity, ESG, Operational Resilience and more.
The PIMFA Virtual Fest will take place on 3-4 June so please save the date. Registration opens soon!
3-4 June | 2 Full Days Click here to find out more
WELLBEING & RESILIENCE WEBINAR Overnight, home working has become the norm with firms and individuals having to adapt at breakneck speed to a new way of working.
In this FREE 60-minute webinar we share practical strategies and approaches that firms are taking during the coronavirus outbreak.
7 May | 11am-Midday Book your FREE Ticket
WEBINAR WEDNESDAY VULNERABLE CLIENTS & COVID19 Our members-only Webinar Wednesday’s are a live, concise update on the latest issues effecting you and your firm during the COVID-19 pandemic. Our next episode will be discussing approach to vulnerable clients during COVID 19. In particular we will look at: •
Current FCA expectations - in light of work that has been re-prioritised and publications that have been postponed regarding their revised guidance for firms on the fair treatment of vulnerable customers
•
The impact of COVID-19 on vulnerability
•
Examples of possible issues firms may face
•
Practical steps firms can take.
Members can register for free here.
LATEST PIMFA CONSULTATION RESPONSES
PIMFA’s latest consultation response is to the Charity Commission regarding how charities approach investing in line with their purpose and values.
Read this and all of our other PIMFA consultation papers here.
WHAT'S HAPPENING IN OUR INDUSTRY
Validity of Electronic Signatures
In the current Covid 19 crisis, which has led to enforced social distancing, issues have arisen in relation to the signing and witnessing of documents. In a recent statement on the use of electronic signatures, the FCA made the following points: •
The validity of electronic signatures is a matter of law
•
FCA rules do not prevent firms from using electronic signatures in agreements
•
Firms may use electronic signatures for all interactions with the FCA
A Law Commission report, published at the end of last year, stated that ‘in most cases’ electronic signatures can be used as viable alternatives to handwritten ones. The report indicated that an electronic signature is capable in law of executing a document (including a deed) provided that the person signing intends to do so and that any further required formalities, such as a witness, are satisfied. Regarding witnesses, where they are required, the current rule is that they need to be physically present, with the witness watching the signatory apply their signature whether on paper or electronically. However given the circumstances of the lockdown and social distancing rules, there is lack of clarity on how this is to be achieved in practice and on the proper interpretation of the rule in the current circumstances. In light of this, we recommend that firms take legal advice.
You can read: •
the FCA’s web-page here
•
the Law Commission’s report here
FCA: UK extends payment security deadline due to coronavirus
In the exceptional circumstances of the Covid crisis, FCA are giving the industry an additional 6 months to implement strong customer authentication (SCA) for e-commerce. This will minimise potential disruption to consumers and merchants. The new timeline of 14 September 2021 replaces the 14 March 2021 date.
Firms are required to take all necessary steps to comply with the revised detailed phased implementation plan and critical path to avoid the risk of enforcement action. FCA expects UK Finance to discuss the plan and critical path with all stakeholders and agree it with the FCA as soon as possible. In the meantime, firms should continue with the necessary preparatory activities such as robust end-to-end testing.
After 14 September 2021, any firm that fails to comply with the requirements for SCA will be subject to full FCA supervisory and enforcement action. Further information is available here.
International Tax Enforcement (Disclosable Arrangements) Regulations
Her Majesty's Revenue & Customs (HMRC) have recently shared draft guidance on the International Tax Enforcement (Disposable Arrangements) Regulations (DAC6) – you firm may have received a copy already – if not, please email kevins@pimfa.co.uk.
In their covering email, HMRC stated:“We will be continuing to update this guidance to provide further clarity and additional examples before the regulations come into force. In particular, we will be including guidance on penalties prior to the guidance being published in HMRC’s International Exchange of Information manual.
If you would like to make comments on this guidance, please send them to mandatorydisclosure.rules@hmrc.gov.uk, ideally by 15 May 2020.
A number of people have been in touch to ask whether the implementation of these rules will be delayed in light of the circumstances around Covid-19. We are carefully considering the representations we have received. We understand the concerns that have been raised and will let you know as soon as possible of any developments.”
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