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PIMFA WEEKLY NEWS BULLETIN | 13 December 2021 Dear Nigel,
Welcome to the PIMFA Bulletin; grab a coffee and take 10 minutes to read the latest news impacting you and your firm.
Compensation Framework Review
On 6 December the FCA launched a discussion paper looking at the compensation framework and the role of the FSCS. We consider this to be a significant milestone in our ongoing campaign on FSCS funding and is proof that we have won the premise that the current levels of funding for FSCS compensation are unsustainable. We would be grateful for firms' views on this matter and these should be directed to Simon Harrington.
Consumer Duty proposals
The FCA has published the next stage of its Consumer Duty proposals, alongside non handbook guidance. We are continuing to work through the implications of these proposals and will form our response accordingly. We would welcome any input from firms and invite you to contact Simon Harrington
PIMFA & Accenture Survey
PIMFA, in collaboration with Accenture, are currently conducting a short survey on what Wealth Management firms are doing to meet current challenges and opportunities and how they intend to future proof and secure their franchises.
This survey forms an integral part of our research to provide a view of the key impacts on the industry post pandemic and reflect on how firms are evolving.
We expect the Survey to take you no longer than 20 -30 minutes to complete. To complete the survey, please click here.
Latest PIMFA Press Releases
PIMFA calls for FCA to make better use of data in supervising Appointed Representatives
Latest PIMFA Press Coverage
Financial Times: Finance industry sceptical over FCA plan to shake up rules
PIMFA calls for greater ambition to solve FSCS levy funding issues PIMFA raises concerns about FCA’s ‘woolly’
Professional Adviser: FCA clamps down on Appointed Representatives in fresh consultation
Consumer Duty proposals International Adviser: FCA eyes FCA pledges to work with PIMFA & the industry to stabilise, and eventually reduce, the FSCS levy at PIMFA’s Leadership Summit
‘fundamental shift’ in customer protection
PIMFA welcomes lower Financial Services Compensation Scheme levy forecast
FT Adviser: Pimfa warns 'woolly'
standards
consumer duty could lead to claims
MoneyAge: FCA consults on changes to AR regime to reduce potential harm to consumers/markets
PIMFA's Latest Consultation Responses
PIMFA’s latest Consultation Response is to the FCA CP 21/28 on the New Cancellation and Variation Power; Changes to the Handbook and Enforcement Guide. Read this and all other PIMFA consultation papers here.
PIMFA Events & Learning
View upcoming PIMFA Events and Learning here.
PIMFA LIVE ONLINE TRAINING: UNDERSTANDING CASS: HOW TO SPOT CASS RISKS TO YOUR BUSINESS 25 January 2022 CASS is an ongoing area of interest for the FCA and we continue to see reminders that firms must regularly review CASS controls to ensure they’re robust and fit for purpose.
Our specialist trainers from Bovill will look at the CASS rules in detail whilst also following a firm case study through the key areas of CASS to look at how the rules might impact a firm and the risks that firms should look out for. We aim to make the session as interactive as possible and encourage firms to talk about their experiences and ask questions. To find out more and register, please click here.
TheCityUK’s report: ’Key facts about the UK as an international financial centre’
The US has overtaken the EU as the leading destination for UK financial services exports, accounting for 34.2% of sector exports in 2020, compared to 30% which went to the EU, according to TheCityUK’s annual report ’Key facts about the UK as an international financial
centre’ report.
In 2020, the UK financial and related professional services trade surplus increased to £79.3bn up from £73.5bn in 2019. The total value of UK financial services exports remained stable in 2020 at £82.4bn. Financial services exports to the EU were down 6.6% to £24.7bn year-on-year, while exports to non-EU countries rose by 4.1% to £57.7bn in the same period, with exports to the US rising by 5.3%. The UK financial services trade surplus in 2020 was $80.6bn, almost as much as the next two leading net exporters, the US ($66.9) and Singapore ($24.8), combined.
The UK is a significant global centre for professional services including business management and management consulting (net exports £20.7bn in 2020) and accounting services (net exports totalling £544m in 2020). UK banking sector assets totalled £10.3trn at the end of the first half of 2021, the third largest in the world and the largest in Europe. The UK is the largest legal services market in Europe (£36.8bn in 2019) and is second only to the US globally. The UK has 16% of the global total of cross-border bank lending. London is a centre for foreign banks, with around 200 foreign banks or branches in the city. Around 2.5 times as many US dollars are traded in the UK as in the US. Overall, the UK has 43% of the global total of foreign-exchange turnover.
The UK insurance sector is the biggest in Europe and fourth largest in the world. The UK private equity market is the most developed in the world outside the US. The UK FinTech market generated revenue worth £6.6bn and employed 76,500 people as of the first half of 2020. London’s importance as a centre for global equity trading is illustrated by the 352 foreign companies listed on the London Stock Exchange (LSE) as of September 2021, accounting for 15.5% of listings in Europe, Middle East and Africa and 7.6% of global listings.
Treasury Committee requests further information on FOS Action Plan
The Treasury Committee has requested further information on a new Action Plan to address issues at the Financial Ombudsman Service (FOS). In a letter to the Chief Executive of the FOS, the Chair of the Treasury Committee, Rt. Hon. Mel Stride MP, requests further information on how the FOS will get on top of the current backlog of
cases.
Following previous testimony to the Committee that it costs the FOS on average £960 to resolve a case compared to the £650 case fee, the FOS is asked to outline how it will address its funding issues. The Committee Chair also requests details on how the FOS will utilise intelligent automation and technology in case handling.
The correspondence follows previous concerns raised by the Committee in January 2021 on the effectiveness of the FOS.
UK – Singapore Digital Economy Agreement
The UK and Singapore have reached agreement in principle on a Digital Economy Agreement (DEA). This will help to ensure that UK businesses have open access to Singapore’s digital economy, so that they can invest and operate freely and in fair competition. This includes a commitment not to impose customs duties on electronic transmissions, meaning that UK exporters can continue to sell electronic content to Singapore without facing tariffs.
Digital trade should be used to empower a full range of businesses to participate in the global economy and both countries will make specific commitments to promote the participation of women and small and medium-sized enterprises (SMEs) in the digital economy. The UK and Singapore will commit to banning unjustified restrictions on the cross-border flow of data. This means that modern trade in services, financial services, agricultural goods, manufactured goods, legal advice, architecture, and much more can continue to grow, supported by the underlying data. In addition, neither country will introduce new, unjustified data localisation requirements. This gives UK businesses a guarantee that they will not have to pay for expensive data storage and processing in Singapore to do business there.
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