PIMFA NEWS BULLETIN | 15 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 Don't forget to book your place at the VIRTUAL FEST taking place entirely online on 3+4 June. Tickets are FREE to Members!
WE ARE IN THIS TOGETHER Dear << Test First Name >>,
We hope you and your loved ones are safe and well during this difficult time. Due to the virus PIMFA is continuing to work remotely, and we remain committed to representing our
members and providing as much useful information as possible.
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.
Best wishes The Team at PIMFA
COVID 19 & What's happening in PIMFA
Brexit negotiations
On Demand PIMFA Webinars & Podcasts
The third round of post-Brexit talks between the UK and EU began on 11 May
Each week we are running our members
via video conference and will last until the
only Webinar Wednesday on key topics
end of this week. As in the previous round,
impacting our members due to COVID
the talks started with an opening plenary
19.
session, continued in the form of negotiations led by experts and will end
This week we discussed 'The impact
with a plenary session today (15 May).
of Covid-19 on ESG'. Members can watch
Expectations are low during this round of
this webinar - and the others in series
talks as both sides seem determined not
on FCA updates, ESG, government
to move from their initial positions. The UK
reactions,scams, vulnerable clients etc on
officials have suggested that EU capitals
demand or read our briefing notes here.
should get involved in the talks in order to achieve political movement on the EU
Please note you must be logged in to view
side. However, a meeting of EU
this material, click here if you have
ambassadors in preparation for the talks
forgotten your password or to create a
agreed that the EUâ&#x20AC;&#x2122;s Chief Negotiator
user account,
Michel Barnier should stick to his negotiating mandate.
Next weeks episode will be on 'How your firm can use Digital innovation during
The contentious issues between the two
the COVID-19 Crisis'. Members can book
sides remain the level playing field
their free place here.
provisions, fisheries, governance and security. The high level Brexit conference
Recordings of open access podcasts and
is planned for June this year in order to
webinars, on topics such as Wellbeing,
take stock of the progress achieved in the
Cyber Resilience & SM&CR etc, can all be
negotiations. A deal has to be agreed by
accessed in our learning library.
December 31, when the Brexit transition period ends. For more information, please
Cyber Security During
contact Maja Erceg.
UK – Japan trade deal
Covid-19
The National Cyber Security Centre has warned firms implementing remote
The UK will exit all EU trade deals around
working practices to ‘be aware of email
the world at the end of the transition
scams and to encrypt/protect sensitive
period on 31 December 2020 and is trying
data’, Beyond Encryption is a PIMFA Plus
to replace them with a series of bilateral
member and provides secure encryption
deals.
to safeguard the data within your emails, read more here.
This week the Government published its negotiating objectives for a free-trade deal
Warning: alarming new trend in
with Japan, and discussions will begin
ransomware attacks
shortly via videoconference. The UK
Our cybersecurity partner, Mitigo, reports
would like to conclude an ‘ambitious’ trade
that foreign cyber criminal gangs are
deal that goes beyond the Japan – EU
targeting financial services firms using
agreement, which Japan refused to roll
new tactics. Theft of data is followed by
over with post Brexit UK. The Department
encryption. Ransom demands for
for International Trade said a new deal
decryption are followed by threats to
would be based on the Japan-EU deal but
publicly release, bit by bit, the confidential
also include new provisions in areas such
data of the firm and its clients. Read more
as digital trade and copyright. British
here.
manufacturing and financial services would benefit the most, the government said. For more information, contact Maja
COVID-19 Information Web Areas
Erceg. Visit our members only Covid-19 web area for latest information on the virus, to access webinar recordings, download
briefing notes, and view the latest global response tracker and health statistics.
Insurance Distribution Directive (IDD) Update
Reminder for firms: New figures for PII cover and financial capacity of insurance intermediaries will apply from 12th June
As advised in November 2019, a delegated Regulation, amending the IDD with regard to regulatory technical standards adapting the base euro amounts for professional indemnity insurance and for financial capacity of insurance and reinsurance intermediaries, was published in the Official Journal of the EU.
The figures have changed as follows: â&#x20AC;˘
the minimum amount of EUR 1 250 000 per claim is increased to EUR 1 300 380 per claim;
â&#x20AC;˘
the minimum amount of EUR 1 850 000 for all claims/year is increased to EUR 1 924 560 for all claims/year; and
â&#x20AC;˘
the minimum amount of EUR 18 750 of financial capacity is increased to EUR 19 510.
The Regulation came into force on the 12th December 2019 and will apply from the 12 June 2020. This Regulation is binding in its entirety and directly applicable in all EU Member States.
The methodology for calculating the new base euro amounts for professional indemnity insurance and for financial capacity of intermediaries is prescribed in detail by the IDD and there is no discretion on the method for calculating these amounts. Firms do need to be aware that the new adjusted figures may require reconsidering and possibly renegotiating contracts for PII to take the new minimum amounts into account. For further information, please contact Alexandra Roberts.
FATF report: Covid-19 related money laundering, terrorist financing risk & policy responses
The Financial Action Task Force (FATF) has recently published a report identifying challenges, good practices and policy responses to new money laundering and terrorist financing threats and vulnerabilities arising from the Covid-19 crisis.
Some of the more notable money laundering and terrorist financing risks highlighted by the report are the following:
•
Increased remote working – this may lead to criminals finding ways to bypass CDD
measures by exploiting temporary challenges in internal controls caused by remote working situations, in order to conceal and launder funds; •
Increased misuse of online financial services and virtual assets to move and conceal
illicit funds; •
Increased fraud (impersonation of officials, counterfeiting, fake fund-raisers, investment
scams); •
Increased cyber-crime (email and phishing attacks, business email compromise scams,
ransomware attacks); •
Increased other predicate offences (human trafficking, online child exploitation);
•
Increased use of unregulated investments.
Firms are advised to consider the FATF paper and determine whether they should take any additional steps to identify and mitigate the particular risks which have arisen as a result of the pandemic.
You can read the report in full, here.
Green Finance
The EU already has climate change at the centre of its COVID 19 recovery plans with MEPs confirming that EU Climate Law should progress as planned and that the recovery should be built around the Green Deal.
The EU also announced a Green Recovery Alliance following a call between European Environment Ministers. It will be multi-stakeholder, with ministers, industry reps, NGOs and
trade unions all involved.
A clear identification of suitable green investments will be useful in devising an effective policy plan which can be implemented. The UK is already planning for that time. The UK Parliament’s Committee on Climate Change, an independent advisory body to the government, set out its framework. It argues for six principles to underpin a green recovery which support jobs, new behaviours; better resilience and fairness with the goal of ‘lockingin’ future emissions and building up incentives to lower emissions.
For further information, please contact Des FitzGerald.
LATEST PIMFA BLOGS & PRESS RELEASES
•
UN Special Envoy Mark Carney and Baroness Morgan of Cotes join PIMFA’s inaugural Virtual Fest as keynote speakers
•
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
•
Blog: What does Market Abuse REALLY look like for Wealth Managers
EVENTS & LEARNING Due to the COVID-19 crisis we have decided to postpone all physical events until further notice. Workshops will still be taking place online via Zoom or may be postponed.
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 that registrations for the PIMFA Virtual Fest are now open. Taking place entirely online, this free (to members only), 2 day immersive experience, is an excellent opportunity for industry colleagues to network and hear from high profile experts such as Mark Carney and Baroness Morgan of Cotes (Nicky Morgan) on topical areas which you have identified to us as key priorities for the profession.
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
WEBINAR WEDNESDAY - DIGITAL INNOVATION & COVID-19 Our members-only Webinar Wednesdayâ&#x20AC;&#x2122;s are a live, concise update on the latest issues effecting you and your firm during the COVID-19 pandemic.
In this episode, Gilly Green, Managing Partner at wealth consultancy Sionics explores firmsâ&#x20AC;&#x2122; use of digital innovation to support their businesses during the current pandemic. You can click here to register your place.
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
The Regulatory Initiatives Grid
The Financial Services Regulatory Initiatives Forum has today launched a new initiative to help financial firms prepare for upcoming regulatory work - the Regulatory Initiatives Grid.
The introduction of the Grid – announced by Chancellor of the Exchequer Rishi Sunak in March’s Budget – has been brought forward by the Forum to help firms stretched by the impact of coronavirus (Covid-19).
The Forum is comprised of the Bank of England, Prudential Regulation Authority, Financial Conduct Authority, Payment Systems Regulator and Competition and Markets Authority, with HM Treasury attending as an observer member.
The Grid lays out the planned timetable for major initiatives - including the transition from LIBOR and the introduction of financial services legislation to prepare for the end of the EU withdrawal transition period.
The launch also highlights initiatives that have been cancelled or delayed to ease the burden on financial services firms during the crisis – including the Bank of England’s 2020 annual stress test and a number of consultations.
The Regulatory Initiatives Grid can be read here.
FCA seeks legal clarity on business interruption insurance alongside package of measures to help consumers and small businesses
The Financial Conduct Authority (FCA) has announced it intends to seek legal clarity on business interruption (BI) insurance to resolve doubt for businesses who are facing uncertainty on their claims.
It is also proposing a series of measures to support both consumers and businesses who hold insurance products and who are facing other issues as a result of Covid-19. The package of measures sets out the FCAâ&#x20AC;&#x2122;s expectations that insurance firms should consider whether their products still offer value to customers in the current situation and whether they can be doing more for those suffering a financial impact because of coronavirus.
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