PIMFA WEEKLY NEWS BULLETIN
18 April 2022
UK Government: “Failure to Prevent Fraud” is a new offence
The Government has introduced a new offence for ‘failure to prevent fraud.’
The new offence aims to drive a culture change towards improved fraud prevention procedures in an organisation and to hold organisations to account if they profit from the fraudulent actions of their employees.
Under the new offence, a convicted organisation can face prosecution with unlimited fine penalties.
The offence is limited to fraud and false accounting, whereas money laundering responsibilities will be dealt with under the existing regulatory regime. It will only apply to large companies and partnerships. To clarify business expectations, the
Government will publish further guidance on reasonable fraud prevention procedures.
The offence for failure to prevent fraud will come into force when the Economic Crime and Corporate Transparency Bill (the Bill) becomes an Act. The Bill is currently making its way through the House of Lords. The factsheet for the ‘failure to prevent fraud’ offence is available here.
We would welcome member views on the measure, given the potential impact it could have on internal operations. Please contact Simon Harrington to discuss.
Review of the Senior Managers and Certification Regime (SM&CR)
UK Regulators are reviewing the effectiveness, scope, and proportionality of the regulatory regime. Treasury’s Call for Evidence, launched alongside the FCA and PRA’s joint Discussion Paper (DP1/23), aims to review the legislative framework.
The deadline for responses is Thursday 1 June 2023.
PIMFA will be responding to these consultations and we will be convening a working group. Any members who are interested in joining - please contact yasmina@pimfa.co.uk
FCA Third Party Survey
The FCA launched the Third Party Survey, asking third parties for information to help determine the implementation of the proposals set out in the DP22/3: Operational Resilience: critical third parties to the UK financial sector.
The survey is open now until 17th May 2023, and can be accessed HERE
FSSC Future Skills Report 2023 Launch Event
Thu, 27 Apr 2023 11:30 - 12:30 BST
The Financial Services Skills Commission (FSSC) are launching their Future Skills Report 2023. The UK has seen record labour shortages over the last year, which has increased the demand for specialised technology and data skills, underpinned by behaviours such as coaching. Firms are working to address this through internal upskilling and reskilling programmes, but the skills gaps remain a huge challenge for the industry. Hosted by the FSSC & Lloyds Banking Group, this event will outline the findings from our Future Skills report 2023 and provide a platform to discuss the importance of identifying and forecasting future skills to retain talent and boost innovation and productivity.
Book your slot at this free online launch event here.
FCA & GFIN Greenwashing TechSprint
“The number of investment products marketed as 'green' or making broader sustainability claims is growing. Exaggerated, misleading or unsubstantiated claims about ESG credentials damage market confidence in those products.”
The FCA and the Global Financial Innovation Network (GFIN) are launching a virtual Greenwashing TechSprint, hosted on the FCA's digital sandbox, to develop a tool or solution to help regulators and the market effectively tackle the risks of greenwashing in financial services.
Participation is open to all UK-based firms. The application will be available for four weeks, starting from 17th April 2023.
Detailed information are available on the FCA website
Consumer Duty Disclosure Framework: FinDatEx publishes EMT V4.1
• On 11 April FinDatEx published the European MiFID Template (EMT V4.1) making the necessary changes to comply with the UK consumer duty regime for financial products and services
• The accompanying press release notes EMT V4.1 includes 10 new optional fields (required for funds being distributed in the UK) as agreed by PIMFA, in partnership with others
Consumer Duty and Vulnerable Customers – New PIMFA Blog
There is a new blog by PIMFA's Senior Policy Adviser Alex Roberts, available here, which discusses how vulnerable customers are at the heart of the new Consumer Duty.
Alex also spoke at the recent CISI Wealth Management Forum - Implementing Consumer Duty, which looked at the challenges, issues and opportunities arising from the implementation of the new Consumer Duty regulations from a practitioner, legal and trade association perspective.
See what else PIMFA is doing on Consumer Duty by visiting our microsite here
PRESS RELEASES
Third PIMFA Diversity & Inclusion Awards Opens for entries
PRESS COVERAGE
Finextra: Ecospend Joins Pimfa WealthTech programme
Ecospend joins PIMFA WealthTech as Innovation Partner to pioneer...
PIMFA urges for greater role for retail investors to deliver Net Zero
PIMFA WealthTech Advisory Council grows to 20 firms with
Citywire New Model Adviser: IFAs set for year of consumer duty...
FT Adviser: Your reputation matters to the whole advice profession
TheWealthNet: PIMFA adds innovation partner to wealthtech
READ MORE READ MORE
