PIMFA NEWS BULLETIN | 22 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: UK – EU negotiations
On Demand PIMFA Webinars & Podcasts
The third round of the UK – EU negotiations on the terms of the future
Each week we are running our members
relationship held in the week of 11 May
only Webinar Wednesday on key topics
made very little progress. The biggest
impacting our members due to COVID-
obstacle is a philosophical difference
19.
between the UK and EU’s approach to the talks. The EU insists that the UK should
This week we discussed 'COVID-19 &
abide by EU laws and standards in
Digital Innovation'. Members can watch
exchange for access to its Single Market.
this webinar - and the others in the series including FCA updates, the impact of the
The most difficult issue is so-called level
virus on ESG, government reactions to the
playing field provisions, designed to
pandemic & future thinking, COVID-19 &
prevent the UK from becoming a major
scams, reviewing your firms approach to
competitor on the EU doorstep with
vulnerable clients in light of the crisis and
potentially light-touch regulation. The UK
others, all on demand or read our briefing
opposes such demands and claims the
notes here.
EU has never insisted on such terms in negotiations with other countries and
Please note you must be logged in to view
wants to conclude a deal similar to that
this material, click here if you have
which the EU agreed with Canada.
forgotten your password or to create a user account,
The next round of talks, scheduled for 1
June, will show the direction on travel but
Recordings of open access podcasts and
the timetable is getting increasingly tight.
webinars, on topics such as Wellbeing,
Pressure will be on both sides to find
Cyber Resilience & SM&CR etc, can all be
common ground if a deal is to be
accessed in our learning library.
concluded and ratified this year. For more information, please contact Maja Erceg.
Your Cyber Security During COVID-19
UK and EU Chief Negotiators Exchange Letters
The National Cyber Security Centre has warned firms implementing remote
UK Chief Negotiator David Frost wrote a
working practices to ‘be aware of email
letter to his EU counterpart Michel Barnier
scams and to encrypt/protect sensitive
in which he said that the EU is offering the
data’, Beyond Encryption is a PIMFA Plus
UK “a relatively low-quality trade
member and provides secure encryption
agreement coming with unprecedented
to safeguard the data within your emails,
EU oversight of our laws and institutions.,”
read more here.
Frost said it is "perplexing" the EU is "insisting on additional, unbalanced, and
Warning: alarming new trend in
unprecedented provisions in a range of
ransomware attacks
areas, as a precondition for agreement
Our cybersecurity partner, Mitigo, reports
between us". He added the UK finds it
that foreign cyber criminal gangs are
“hard to see what makes the UK, uniquely
targeting financial services firms using
among your trading partners, so unworthy
new tactics. Theft of data is followed by
of being offered the kind of well-
encryption. Ransom demands for
precedented arrangements commonplace
decryption are followed by threats to
in modern FTAs”. Ending on a positive
publicly release, bit by bit, the confidential
note, Frost said he was convinced it would
data of the firm and its clients. Read more
be very straightforward for the two sides to
here.
agree a modern and high-quality FTA and other separate agreements, and that it would be possible to do so quickly.
PIMFA Website: COVID-19 Information
In his reply, Michel Barnier, EU Chief Negotiator, confirmed that the EU shares
Visit our members only COVID-19 web
the UK’s commitment to help the process
area for latest information on the virus, to
move forward but also added that
access webinar recordings, download
“detailed discussions on substance are for
briefing notes, and view the latest global
the negotiating table.” Barnier explained
response tracker and health statistics.
that the access to the Single Market can only be secured with guarantees that competition will be open and fair, a point, he said, the EU has been making since
Brexit: UK Draft Free Trade Agreement Published
2017. Barnier said tangible progress was needed across all areas of negotiations
The UK published its draft free trade
including on the level playing field,
agreement with the EU on 19 May. British
fisheries and the governance of the
negotiators hope the published legal texts
arrangements. He ended the letter on an
will energise the talks and highlight a
optimistic note saying he remained
series of areas where there are mutual
convinced that with the mutual respect
interests. As part of financial services
and the UK’s constructive engagement it
chapter the UK proposes an independent
is possible to move forward within the
panel to judge disputes. The panel would
available time frame.
be made of 15 individuals with a background in the financial services
For more information, contact Maja Erceg.
industry or regulatory bodies, chosen on the basis of objectivity, reliability and
UK – US Trade Talks
sound judgement. The UK and the EU would both nominate five each and another five members would not be
A second virtual round of the UK – US
nationals of either side. The parties would
trade talks is scheduled for the weeks of
have the right to suspend the benefits of
15 and 22 June. Although taking place in
the trade deal in any area covered by the
unprecedented circumstances,
agreement if the panel finds a breach of
negotiations conducted so far have been
the financial-services provisions.
efficient and both sides are hopeful that the talks can proceed at an accelerated
For more information, contact Maja Erceg.
pace. Discussions were held in almost 30 different negotiating groups covering all elements of a free trade deal. More than
PIMFA CCSS Working Group
£220bn worth of goods and services are traded between the UK and US annually
Euroclear are keen to ensure that all
and the UK is hoping to capitalise on its
CCSS participants are up to date with the
new-found ability to strike free-trade deals
latest news and have kindly offered to join
to show it can create more opportunities
a fortnightly conference call with PIMFA
and prosperity. The UK is also keen to
members, to explain the current position
improve market access for UK services in
and their plans and to answer any
accountancy, architecture and finance, as
questions.
well as freedom of movement and mutual recognition of professional qualifications.
If you or a colleague would like to join these conference calls, please contact
For more information, contact Maja Erceg.
Michael Cahill. The next call is scheduled for Wednesday, 27 May at 11:00.
MiFID II / MiFIR Review
PIMFA has responded to the European Commission’s consultation on the review of MiFID II/MiFIR, which was launched on 17 February. The window for submitting a response closed on 18 May. Two years after the start of application of MiFID II/MiFIR, the Commission was required to assess the functioning of the framework, report back to the Parliament and Council and if necessary, put forward a legislative proposal for a reform.
The consultation covered both general and specific questions on priority and non-priority areas. Priority areas included the establishment of an EU consolidated tape and the reasons why it has not emerged. The Commission sought views on easier access for consumers to simple and transparent products, product oversight, governance and inducements, distance communication and reporting on best execution. It was also interested in stakeholders’ assessment of the effect of unbundling on the quantity, quality and pricing of research as well as on targeted aspects of digitalisation and new technologies.
You can read PIMFA's full response here.
LATEST PIMFA BLOGS & PRESS RELEASES
PIMFA’s Virtual Fest adds Treasury’s John Glen and FCA’s Megan Butler to panel of keynote speakers
UN Special Envoy Mark Carney and Baroness Morgan of Cotes join PIMFAâ&#x20AC;&#x2122;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 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 The inaugural PIMFA Virtual Fest will be taking place entirely online on 3 and 4 June 2020 and is FREE to members, (paid for tickets are also available for nonmembers).
This 2 day immersive experience is an excellent opportunity for industry colleagues to network and hear from 30+ high profile experts such as Mark Carney, Megan Butler, John Glen and Baroness Morgan of Cotes (Nicky Morgan) on topical areas which you have identified to us as key priorities for the profession.
3-4 June | 2 Full Days BOOK NOW
BEST PRACTICES IN BUSINESS CONTINUITY: HOW YOUR FIRM CAN RESPOND PROACTIVELY TO DISRUPTIVE EVENTS To support member firms meet their regulatory obligations and proactively assess, review and update their business continuity plans, PIMFA is running a live interactive online learning course to ensuring your business continuity plan is fit for purpose not just now but for the future. What you’ll learn: •
Recognise what makes an effective business continuity plan and a disaster recovery plan
•
Understand what information goes into each document and how to obtain that information
•
How to implement and audit a business continuity management system
•
Identify and address in your firm the known and unknown risks, threats, and incidents
•
and more.
You can click here to register your place.
22 June 2020
BUILDING OPERATIONAL RESILIENCE IN WEALTH MANAGEMENT FIRMS In this online course will explore the FCA’s interpretation of Operational Resilience as it applies to wealth management firms and their expectations of those firms who will be required to evidence that they are have identified their critical business services and set challenging impact tolerances for each of them. What you’ll learn: •
Understand what the regulator means to achieve operational resilience in your firm
•
Recognise the business value of operational resilience and business continuity
•
Co-ordinate people and resources to build an effective resilient management
•
Leverage proven approaches to set impact tolerances for each important business service you provide
•
and more.
You can click here to register your place.
29 June 2020
LATEST PIMFA CONSULTATION RESPONSES
PIMFA’s latest consultation response is to the European Commission regarding their review of MiFID II and MiFIR.
Read this and all of our other PIMFA consultation papers here.
WHAT'S HAPPENING IN OUR INDUSTRY
Euroclear CSD Application
Euroclear’s application for authorisation as a CSD under CSDR is still being reviewed by the Bank of England. Euroclear are hopeful their application will be accepted by the end of June 2020. If this is the case, then the Bank of England has up to six months to grant CSD authorisation and based on the experience of other EU CSDs, Euroclear could be authorised in December 2020. At the point when the authorisation is granted, CSD participants should be ready to offer their new and existing clients the ‘at reasonable cost’ choice of an omnibus or segregated account for the Crest eligible investments.
Euroclear will be checking with firms to ensure they have made this offer.
CSDR Settlement Discipline
The target live date for CSDR Settlement Discipline is still 1 February 2021. We are aware there is lobbying to delay a number of EU wide initiatives in light of the Covid-19 pandemic and its impact on firms’ readiness and we understand these suggested timetable revisions are being considered, but for now, Euroclear are still targeting a live date of 1 February next year.
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