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PIMFA WEEKLY NEWS BULLETIN | 20 June 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.
FOS publishes Discussion Paper on its future funding model
The Financial Ombudsman Service (FOS) has published a discussion paper on its future funding model. In brief, they are proposing that: -
The Compulsory Jurisdiction levy will now only cover fixed overheads
-
The Voluntary Jurisdiction levy will become a fixed fee
For discussion are options for updating the current case fee structure. The current case fee is set at £750 which does not take into account the cost of the issue at hand. The FOS are
proposing introducing differentiated case fees which would more easily allow them to recover the costs of dealing with specific cases. It follows logically that simpler cases will likely carry a lower cost than more complex cases.
Going forward, the FOS is looking for more substantive options for reform in future, including charging organisations like Claims Management Companies a fee for bringing a case forward.
We will be working on this over July and would welcome firm's input. Please contact Simon Harrington should you have any thoughts on the proposals.
PIMFA D&I Awards - Submit Your Free Entry Today
PIMFA DIVERSITY & INCLUSION AWARDS ENTRIES CLOSE NEXT WEEK: 22 JUNE No matter how small the initiative or project, we would love to hear about it!
The Awards are quick, simple and FREE to enter... and open to all firms and stakeholders in the sector - you do not have to be a PIMFA member to enter.
If you have any questions regarding the awards and submitting your entry, please get in contact.
Click here to find out more and enter
FCA D&I Cost Benefit Analysis Survey
In January 2022 some PIMFA members may have been contacted by the FCA policy team asking them to complete a Cost-Benefit Analysis Survey to support the regulator’s policymaking on D&I. The regulator appreciates every firm that was able to respond and have used those responses to take forward their regulatory work on this topic.
We would like to encourage those members who have received the D&I CBA survey to take the time to complete it. This will help the FCA make sure the cost estimates they publish in the consultation paper best reflect our members.
They recognise the survey requires certain assumptions to be made and can be complex to complete so, if you have any questions, please contact Maja Erceg and we will arrange a call between our members and the FCA to help answer any queries you may have.
Latest PIMFA Press Release
Latest PIMFA Press Coverage
PIMFA publishes Diversity & Inclusion
FT Adviser: Post-Brexit rules could make
reports as it extends deadline for entries
FCA ‘most powerful’ regulator
to this year’s D&I Awards Money Marketing: Consumer Duty will PIMFA welcomes Financial Conduct
make ongoing fees hard to justify
Authority ban on Claims Management ‘phoenxing’
Mortgage Strategy: PIMFA releases new reports to support D&I across industry
PIMFA calls for FCA to be given power to direct Ofcom to remove fraudulent content
Citywire New Model Adviser: PIMFA:
in Online Safety Bill
Facebook and Google should pay for FSCS
PIMFA welcomes reduction in FSCS levy, but repeats call for FCA fines to subsidise
FT Adviser: Industry welcomes levy drop
the levy and ensure ‘polluters pay’
but questions FSCS forecast
PIMFA Events
PIMFA Member-Only Roundtable NAVIGATING DIGITAL TRANSFORMATION IN WEALTH
28 June | 08:30-11:00 This PIMFA Breakfast Roundtable event in partnership with BNY Mellon | Pershing will be discussing the digital transformation journey in wealth management.
For more information, and to register please click here.
View other upcoming PIMFA Events & Learning here
FCA publish a new web page on vulnerable customers
On the 16th June, the FCA published a new web page on ‘Ensuring the fair treatment of vulnerable customers’, emphasising that firms needed to ensure that vulnerable customers are treated fairly, particularly relevant in light of the cost of living crisis as it is expected that more consumers would display characteristics of vulnerability as a result. Following on from the publication of the FCA’s guidance to firms on the fair treatment of vulnerable customers back in 2021, the FCA pointed out that whilst there had been some good examples of firms taking positive action, there were also some inconsistent practices and areas which required improvement. Reference was also made to the Consumer Duty.
You can read the new web-page in full here.
Data Reform Bill
To round off London Tech Week, the government is publishing its response to a consultation which aims to harness the power of data to help British businesses trade abroad, boost the UK’s position as a science and technology superpower, and improve people’s everyday lives. It sets out how the Data Reform Bill announced in this year’s Queen’s Speech will strengthen the UK’s high data protection standards while reducing burdens on businesses to deliver around £1 billion in cost savings that they can use to grow their business, boosting the economy. The plans will modernise the Information Commissioner’s Office, the data regulator, so it can better help businesses comply with the law. As well as empowering the UK to strike new data partnerships, the reforms will fuel the responsible use of data for innovation by providing clearer definitions on how consent is obtained for research. Whilst existing high data protection standards will remain, organisations will have more flexibility to determine how they meet these standards.
Learn more here.
FCA - Shaping the rules for a data-driven future
Speaking about shaping the rules for a data-driven future, at the Dutch Authority for the Financial Markets (AFM) 20th anniversary seminar, Nikhil Rathi, FCA’s Chief Executive, said that the value of consumer data has soared and “we often trade privacy for expediency”. There is more work to be done to ensure online platforms and social media firms are accountable for harmful ad content which appears on their platforms.
Rathi also said that he hoped the Online Safety Bill, due to come into force in the UK, will ensure consistent protections, in that platforms which host user-generated content will be held to account over that content.
The speech can be read in full here.
MEPs object to Commission’s plan to include gas and nuclear activities
In a joint meeting of the European Parliament’s Economic and Monetary Affairs Committee and the Environment, Public Health and Food Safety Committee on Tuesday 14 June, MEPs adopted an objection to the Commission’s proposal to include specific nuclear and gas energy activities in the list of environmentally sustainable economic activities covered by the so-called EU Taxonomy, with 76 votes to 62 votes and 4 abstentions.
MEPs recognise the role of nuclear and fossil gas in guaranteeing stable energy supply during the transition to a sustainable economy. But, they consider that the technical screening standards proposed by the Commission, in its delegated regulation, to support their inclusion do not respect the criteria for environmentally sustainable economic activities as set out in Article 3 of the Taxonomy Regulation.
The resolution adopted by MEPs also requests that any new or amended delegated acts should be subject to a public consultation and impact assessments, as they could have significant economic, environmental and social impacts. The resolution is scheduled for a vote during Parliament’s plenary session of 4 -7 July 2022. Parliament and Council have until 11 July 2022 to decide whether to veto the Commission’s proposal. If an absolute majority of MEPs (353) objects to the Commission’s proposal, the Commission will have to withdraw or amend it.
HMT response to the consultation on Amendments to the Money Laundering Regulations 2017
HM Treasury has published its response in relation to its proposed changes to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs 2017).
The changes to the MLRs have now been made through draft secondary legislation entitled ‘The Money Laundering and Terrorist Financing (Amendment) (No. 2) Regulations 2022’. Most of the measures in this SI will come into force on 1 September 2022, subject to Parliamentary approval. HMT’s response to the broader Call for Evidence on the MLRs will be published by the end of June.
The key points can be viewed here.
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