PIMFA Weekly News Bulletin - 12 February 2024 by PIMFA

Featured: New PIMFA Associate Member - Common Sense Implementations Ltd

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12 February 2024

PIMFA WEEKLY BULLETIN PRESS RELEASES

ABOUT PIMFA

CONSUMER DUTY

WEALTHTECH

New PIMFA Associate Member We are pleased to welcome Common Sense Implementations Ltd as an Associate Member. They can help Financial Services firms deliver key complex projects, through tried and tested, robust and controlled project management processes, with a common sense, hands-on approach.

PIMFA proudly presents a transformative event in celebration of International Women’s Day 2024: Breaking Barriers. Our mission is to redefine the landscape of wealth management and financial advice

by attracting a diverse group of young minds. With the theme of ‘Inspiring Inclusion,’ we want to create an industry that every individual can see themselves in both to work and build their financial education. Taking place virtually on Zoom, the event aims to inspire and empower the next generation of young women and girls across the UK in the field of wealth management and financial advice. It will feature senior leaders from the industry, two-panel sessions followed by a virtual Q&A networking session where attendees can build meaningful connections with Senior HR leaders to learn about how to get into the industry. For further details and booking information, please click here.

PIMFA Regulatory Forum - Tuesday 23rd January recording now available on PIMFA website The January Regulatory Forum has now been posted on the PIMFA website here. The recording includes: •

FCA CP23/24 Capital deduction for redress

•

HMT/FCA DP23/5 Advice Guidance Boundary Review

•

ICMA/IRSG Voluntary code of conduct for ESG ratings and data products providers

•

UK-Switzerland agreement on mutual recognition in financial services (The Berne Financial Services Agreement)

•

PTRA/BoE CP26/23 - Operational resilience: Critical third parties to the UK financial services sector

•

FOS 2024/25 Plans and budget consultation

If you are from a PIMFA member or associate firm and would like to be added to the distribution list to attend the next Regulatory Forum, please contact Heidi Bryant.

PIMFA is delighted to be launching our Women’s Symposium on 16 and 17 April this year! The inaugural annual summit is dedicated to the investment management, financial advice and wealth management communities, and will feature cutting edge thought leadership, high profile speakers, and lively discussions on a range of topics, aiming to create a safe space for professionals to network, learn and share best practice from across their professional world. The symposium is FREE to attend for PIMFA members and associate members and solely funded by our wonderful sponsors, and we encourage individuals at all stages of their career, from Chief Executives to Interns, to join us for two days of motivational talks, regulatory updates, industry panels, personal development roundtables and thought-provoking content related to our industry, and to career development.

BOOK YOUR FREE TICKETS NOW

EU Regulation: European Council and Parliament reach agreement on ESG ratings On 5 February the European Council and Parliament reached a provisional agreement on a proposal for a regulation on environmental, social and governance (ESG) rating activities, which aims to boost investor confidence in sustainable products.

The new rules aim to strengthen the reliability and comparability of ESG ratings by improving the transparency and integrity of the operations of ESG ratings providers and preventing potential conflicts of interests. Under the new rules, ESG rating providers will need to be authorised and supervised by the European Securities and Markets Authority (ESMA) and comply with transparency requirements, in particular with regard to their methodology and sources of information. The provisional political agreement is subject to approval by the Council and the Parliament before going through the formal adoption procedure. The regulation will start applying 18 months after its entry into force.

FCA papers on

The FCA has published a new webpage on how it measures the impact of its policies with links to three new documents:

measuring their

•

How we analyse the costs and benefits of our policies - February 2024 (PDF)

impact

•

When and how we use field trials (PDF)

•

Occasional Paper No. 39: Estimating the benefits of interventions that affect consumer behaviour

The first publication outlines the FCA’s approach to analysing the costs and benefits of its policies. The FCA last published its approach in 2018.This new publication gives an update, explains the core principles of the FCA methodology, expands on how it estimates benefits and updates their Standardised Cost Model. Later in 2024 the FCA will establish a CBA Panel and consult them on its approach to CBA, along with the other elements that will eventually form the FCA Statement of Policy. You can read the webpage in full here.

FCA publication on reducing and preventing financial crime The FCA have published an update on their progress in reducing and preventing financial crime. They set out the steps taken in the last 18 months to reduce investment fraud, from issuing warnings and running ScamSmart campaigns to collaborating with the Advertising Standards Agency and platforms such as Meta and Google to tackle illegal financial promotions. In relation to its approach to sanctions and money laundering, the FCA has developed a synthetic data sanctions testing tool and has maintained a robust approach to authorisation.

Looking ahead, the FCA has identified 4 areas where further collaborative action can help shift the dial decisively on reducing and preventing financial crime. These are: •

Data and technology - firms must ensure that systems and controls keep up with the increasing sophistication of criminal groups and should use the advances in technologies to help prevent financial crime

•

Collaboration – sharing data and intelligence and working collaboratively across sectors will result in a more informed view of economic crime threats.

•

Consumer awareness – firms should ensure that consumers are supported and educated on how to spot the signs of a fraud.

•

Metrics and measuring effectiveness - Measuring the effectiveness of fraud and money laundering prevention will allow firms to be clear on the impact their interventions are having.

You can read the FCA’s report in full here.

PRESS RELEASES

PRESS COVERAGE

PIMFA announces the launch of its inaugural Women’s Symposium

The Sunday Times: Saved from a £4k bill, but still £1bn down

PIMFA welcomes FCA proposals for

FT Adviser: Pimfa calls for more clarity from FCA on antigreenwashing rules

Sustainability Disclosure Requirements PIMFA welcomes the Financial

Financial Planning Today: PIMFA to hold Women's Symposium in April

Conduct Authority’s proposals for improving financial advice to consumers

FT Adviser: 'Pimfa: We strongly support the FCA's working group...

Citywire Wealth Manager: Consumer duty debate: The ‘outrageously poor...

PIMFA LEARNING

15 February 2024

14 March 2024

Webinar | 10:00 - 11:00

Live Online Learning | 09:30 - 12:30

Free

£400 - £500

FINANCIAL CRIME OUTLOOK 2024:

REPUTATION, RESILIENCE AND RISK:

WHAT YOU NEED TO KNOW

ARE YOU GETTING IT RIGHT?

Whilst some of the same financial crime compliance challenges remain and other risks emerge, what’s clear is that reducing financial crime continues to be a FCA priority in 2024. The regulator’s dedicated financial crime function within Consumer Investments will be proactive in identifying firms with fraud, scams, money laundering or sanctions risk indicators using data and intelligence. Expect to see an increase in on-site visits and inspections with little-to-no warning. Your preparedness for regulatory scrutiny will be critical.

Offer: Bring your colleague along for free Be under no illusion - how your firm prepares, adapts to, withstands and recovers from disruptions and unexpected events is of great interest to the FCA in 2024. Last year’s enforcement fines penalising individuals and firms in connection with their outsourcing and cybersecurity arrangements grab the headlines but remind PIMFA member firms of the importance of strengthening their operational resilience framework to avoid, in the new ‘Consumer Duty’ environment, causing client harm.

Being confident that you are meeting, implementing and embedding the regulator’s expectations and play your part to reduce financial crime is key. Rebecca Cummings and Daisy White-Smith of Avyse Partners outline

In this three-hour interactive masterclass with Operational Resilience expert Richard Preece, you and your colleagues will roll their sleeves up and learn how to analyse, test, and strengthen operational resilience across your firm. You will make meaningful inroads into bringing your most important business services

and prioritise your financial crime objectives for the year ahead.

within their defined impact tolerances by the FCA’s deadline of 1st March 2025. Reserve your place TODAY and at no additional cost bring a colleague along for FREE. Register here using coupon BOGOFRES2024 at checkout for 50% OFF two tickets.

FIND OUT MORE

Please note that responses to this email address are not monitored. If you wish to get in contact, please email info@pimfa.co.uk.

Personal Investment Management & Financial Advice Association (PIMFA) 69 Carter Lane, London, EC4V 5EQ (registered in England No 2991400)

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