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PIMFA WEEKLY NEWS BULLETIN | 14 March 2022 Dear Nigel,
Welcome to the PIMFA Bulletin; grab a coffee and take 10 minutes to read the latest news impacting you and your firm.
Campaign Win: Major Law Changes to Protect People from Scam Adverts Online
PIMFA is delighted by the Government’s decision to bring paid-for online adverts within the scope of the Online Safety Bill after PIMFA's year-long campaign alongside Which?, UK Finance, The Money and Mental Health Policy Institute and many many others.
The move will bring fraudulent paid-for adverts on social media and search engines into scope, whether they are controlled by the platform itself or an advertising intermediary. These companies will need to put in place proportionate systems and processes to prevent (or minimise in the case of search engines) the publication and/or hosting of fraudulent advertising on their service and remove it when they are made aware of it.
It will mean companies have to clamp down on ads with unlicensed financial promotions, fraudsters impersonating legitimate businesses and ads for fake companies. It includes ‘boosted’ social media posts by users which they pay to have promoted more widely. The regulator Ofcom will set out further details on what platforms will need to do to fulfil their
new duty in codes of practice. This could include making firms scan for scam adverts before they are uploaded to their systems, measures such as checking the identity of those who wish to publish advertisements, and ensuring financial promotions are only made by firms authorised by the Financial Conduct Authority (FCA). Ofcom will oversee whether companies have adequate measures in place to fulfil the duty, but will not assess individual pieces of content, in keeping with the approach taken in the rest of the bill. It will have the power to hold companies to account by blocking their services in the UK or issuing heavy fines of up to £18 million or ten per cent of annual turnover. Liz Field, Chief Executive of PIMFA, comments: “When the Government first published its White Paper on the Online Safety Bill many who work in financial services, consumer groups and charities were dismayed to discover that financial harm was not among the harms the new Bill would deal with. “As a result, PIMFA, UK Finance, Which? The Money and Mental Health Policy Institute and many other organisations formed a campaign group to lobby the Government to include fraudulent online adverts and user-generated content, which cause untold financial and mental distress to thousands upon thousands of victims each year, within the scope of the Online Safety Bill. “In May, the Government conceded our point about user-generated content and included such content within the scope of the Online Safety Bill. Today, it has once again accepted our argument, and that of the FCA, FSCS, Bank of England, and the Treasury Select Committee among a host of MPs and others, that paid-for online adverts be included within the scope of the Bill. “Of course, we will wait to see the detail in the Bill. But we are delighted to see the Government has seen sense and is willing to act to save thousands of people from the threat of fraud, which is after all, the widest reported crime in the UK today.”
Russian invasion of Ukraine: operational and cyber resilience
The FCA has set out points that firms should consider regarding their operational and cyber resilience following Russia’s invasion of Ukraine. Although the National Cyber Security Centre (NCSC) is not aware of any current specific cyber threats to the UK following events in Ukraine, firms should be vigilant. The FCA recommends firms review the NCSC’s guidance outlining actions all organisations should consider in response to the current situation. Firms should consider their ability, and that of their third-party providers, to withstand a cyber-attack and take all appropriate steps to shore up their controls. Firms should ensure their business continuity and incident management arrangements are up to date, ensuring that they can continue to function and meet regulatory obligations in the event of unforeseen disruption. Material operational incidents should be reported to the FCA in a timely way.
FRC encouraged by investors embracing the spirit of the UK Stewardship Code
The FRC has published an updated list of signatories to the UK Stewardship Code. This now includes successful applicants who submitted their report at the end of October 2021. The FRC received 105 applications which was substantially more than expected, of which 74 were successful. This takes the number of signatories to 199, including asset managers with £33 trillion in global assets under management. There was an encouraging level of applications from organisations that were previously unsuccessful. Many have addressed the feedback given by the FRC and have provided better quality reporting of their stewardship activities. In November 2021, the FRC published Effective Stewardship Reporting: Examples from 2021 and expectations for 2022 which contained guidance on good practice reporting. The FRC encourages all signatories and applicants to read this for information on how to improve critical areas of reporting including reporting on market-wide and systemic risks, non-listed equity, outcomes and engagement.
Latest PIMFA Press Releases
Latest PIMFA Press Coverage
FCA willingness to engage on FSCS is
Daily Mirror: Victory! Fraud levels could
positive, but real progress sits with the
'plummet' with new law to tackle online
Government
scam advertising
PIMFA’s Virtual Fest adds Shadow
Money Marketing: Liz Field: Provide the
Economic Secretary to the Treasury Tulip
tools to exercise freedom and choice
Siddiq as second keynote speaker Citywire New Model Adviser: ‘FCA PIMFA delighted by Government
reforms to AR regime will have detrimental
announcement that it will include paid-for
impact on networks’
online adverts within scope of Online Safety Bill to tackle fraud
Professional Adviser: PIMFA adds Coutts & Co's James Clarry to board
& PIMFA delighted to welcome Coutts Co’s James Clarry to its Board
FT Adviser: Online Safety Bill to include paid-for scam ads
PIMFA urges Regulator to rethink its approach to Appointed Representatives
Corporate Adviser: PIMFA urges Govt to use FCA fines effectively
PIMFA’s Virtual Fest returns for third year as FCA’s Therese Chambers unveiled as
Actuarial Post: FCA willingness to engage
a keynote speaker
on FSCS is positive
Firms still need certainty and time to
TheWealthNet: PIMFA urges rethink on
implement FCA’s Consumer Duty
appointed representative scheme
PIMFA's Latest Consultation Responses
Our latest Consultation Responses include: •
PIMFA's response the FCA Compensation Framework Review
•
PIMFA’s response to FCA’s Call for Evidence on Improving the Appointed Representatives Regime
•
PIMFA response to A New Consumer Duty – Feedback to CP21/3 and further consultation
•
PIMFA’s response to HM Treasury; Future Regulatory Framework Review Financial Services Strategy
•
PIMFA’s response to FCA; DP 21/4: Sustainability Disclosure Requirements (SDR) and investment labels
Read these and all other PIMFA consultation papers here.
Free 'Inspirational Investing' eBook
In honour of International Women's Day our friends at Harriman House are offering the opportunity download 'Inspirational Investing' for FREE.
Access this free ebook here.
PIMFA Events
The Virtual Fest 2022 begins today! Gain valuable insights, hear from industry experts & earn up to 19 hours of CPD.
Unlike previous years (where the conference took place over 2 days), the Virtual Fest 2022 will be taking place over 2 weeks, with exclusive and limited content released each day and available on demand throughout so that you can enjoy at a time which suits you best. Registration is still open - please click here to confirm your place. We are delighted to be welcoming keynote speakers Therese Chambers, Director of Consumer Investments from the FCA and Shadow Economic Secretary to the Treasury & City Minister, Tulip Siddiq, alongside speakers from the City of London Police, SRI Services, Mapped Marketing, Royal London, TIME Investments, Seccl and others.
Read more about the event here.
PIMFA Learning
PIMFA TRAINING: MARKET ABUSE 2022 REFRESHER FOR WEALTH FIRMS 15 March | 9:30 - 11:30 The FCA expects all firms to have a deep understanding of their market abuse risk, and build control frameworks that are both proportionate and effective, however, recent market abuse reviews by consultancy firm Bovill in wealth firms indicate they are struggling to properly assess, understand and
articulate the specific market abuse risks inherent in their business. In this 2 hour interactive, online training course, leading consultants Bovill reveal where wealth firms are falling foul of regulatory expectations and what they need to do to implement effective policies and procedures to control market abuse risks posed by remote working. Please click here to register.
View Upcoming PIMFA Events & Learning here
Partner Events
WOMEN & WEALTH FORUM | 15 March 2022 KBC’s unique global Forum will celebrate women wealth holders, wealth creators and wealth managers and discuss what main challenges these women face and how to overcome them.
Sessions will cover specific issues encountered by such groups of women as: entrepreneurs and owners of family businesses; next generation; newly divorced or widowed. PIMFA Chief Executive, Liz Field will be chairing a session at the forum on philanthropy. While the event is focused on women’s wealth, ALL professionals interested in current wealth management trends are welcome. To find out more about the forum, please click here. PIMFA Members qualify for a 15% discount. Please use the code PIMFA when registering. You can register by clicking here.
18th ANNUAL AML & FINANCIAL CRIME SEMINAR 27 - 28 April Join us at the seminar hosted by Herbert Smith Freehills, providing essential updates from the Home Office, FCA, HMRC, OFSI, FCDO, JMLSG, Companies House, CPS, Met Police and leading cross-industry experts!
The full programme and speaker faculty can be viewed here. Please click here to register and use code 'PIMFA' to get a 10% discount.
Find Out More About PIMFA ...
Bulletin is just one of the many insights and publications PIMFA produces on the latest industry news and issues - most of which are accessible to PIMFA members only.
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