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PIMFA WEEKLY NEWS BULLETIN | 24 May 2021 Dear Nigel,
Welcome to the PIMFA Bulletin; grab a coffee and take 10 minutes to read this week's latest industry news impacting you and your firm.
PIMFA welcomes FCA plans to stop Claims Management Companies from ‘Phoenixing’
PIMFA has welcomed proposals from the FCA that would ban claims management companies from managing FSCS claims where they have a relevant connection to the claim; a practice known as ‘phoenixing’ . PIMFA has called for the practice of phoenixing to be banned for some time, not least in our policy paper published late last year. Simon Harrington, Senior Policy Adviser at PIMFA, said: “This is an extremely welcome intervention from the FCA. As we set out in our paper on FSCS reform last year, it is of the utmost importance that the ways in which firms are able to transfer risk onto the FSCS and exploit for their own potential gain should be reviewed. “This consultation and, we hope, the forthcoming policy statement, is a significant step in addressing this market distortion. While it is step in a much longer journey towards lower levies, it is still extremely welcome and a credit to the FCA that they have listened.”
FCA on the rise in scams and the threat to a legitimate financial services industry
In a speech on 18 May, the FCA’s Executive Director of Enforcement and Market Oversight, Mark Steward, said the FCA has a substantial role to play in preventing harm to consumers from unauthorised activities and it has made improvements to address scams as they are happening. He added that while the FCA does have statutory power over the use of false or misleading statements in relation to securities, those powers will not bite where the investment product is outside the financial promotions perimeter. The perimeter, or perimeters, is an intricate boundary that can produce different results in terms of regulatory power, consumer protection and outcome, depending on some equally technical distinctions.
Steward went to add that 'despite these circumstances, the FCA remains very active and engaged in tackling the scourge of investment fraud in this country, and firms should also be doing more to prevent harm'. He also said that regulated firms who let down their guard, especially in assisting firms on the FCA's Warning List, may well face action for doing so, and that the FCA continues to engage with online platforms to ensure harm is prevented.
Lord Frost on post Brexit UK – EU relations
Lord Frost, the minister responsible for implementing the Brexit agreement and the former Chief Negotiator, appeared before the cross-party European Scrutiny Committee on 17 May 2021. Lord Frost is also the UK co-chair of the EU-UK bodies responsible for managing the post-Brexit relationship. Speaking to MPs, Frost said “unsettledness” in Northern Ireland is higher than the Government had expected. He said that from the EU’s view the easiest solution to any border problem is that the two sides should operate the same rules, and added that “obviously, that doesn’t work for us. That is not going to be the solution”. Frost said it was his responsibility that post-Brexit legislation, announced in the Queen’s Speech last week, is “genuinely consistent with de-regulation and the spirit of Brexit and goes forward on that basis.”
Frost said that the new International Policy Unit in the Cabinet Office, currently being
created, will report to him and focus on regulatory reform in areas like financial services. Recruitment for the Unit will start soon and it might be headed by someone outside government. The UK will move away from the EU’s “prescriptive” processes to “a lighter touch” approach to regulation, taking into consideration changing circumstances. This process might take some time, Frost said, but the Government is committed to making sure the UK does not function as part of the EU’s “regulatory orbit.”
PIMFA Diversity & Inclusion Awards - entries now open
The inaugural PIMFA Diversity & Inclusion Awards will be taking place on 20 October and entries are NOW OPEN! Click here to find out more.
PIMFA is committed to developing, supporting and encouraging initiatives to create a more diverse and inclusive industry, and these awards are an opportunity to recognise and share examples of the wonderful work being carried out by your firms and colleagues.
Entry to the PIMFA D&I Awards is free and open to all firms and stakeholders in the wealth management, investment services and financial advice sector.
We encourage organisations both large and small, at whatever share of their diversity and inclusion journey they are at, to enter and shine a light on the pockets of D&I good practice that remain hidden or unrecognised.
Key Details: •
FREE to Enter
•
Entries opened 20 May & Close 17 August 2021
•
Awards will be held on 20 October 2021
•
8 Categories
•
14 Judges
FInd out more
MSCI PIMFA Index Series’ – new asset allocations effective from 28.05.2021
The PIMFA Indices Committee has made changes to the portfolio weights of the MSCI PIMFA Index Series. These changes are detailed below and will be effective from Friday 28th May. •
Changes to the Private Investor Index Series can be viewed here.
•
Changes to the Equity Risk Index Series can be viewed here.
For further details please contact us at indices@pimfa.co.uk
Latest PIMFA Press Releases
PIMFA launches their first industry awards to recognise companies promoting diversity and inclusion PIMFA welcomes FCA plans to stop Claims Management Companies from ‘Phoenixing’
Latest PIMFA Press Coverage
Reuters: UK financial watchdog takes aim at 'phoenix' claims scam
The ‘I’ paper: Watchdog launches proposals to stop bust firm bosses cashing in on compensation claims
PIMFA welcomes FCA proposals to enhance consumer protections but warns against unintended consequences
Thisismoney.co.uk / Daily Mail: A professional's guide to reviewing and
PIMFA welcomes reduction in FSCS levy but continues to call for fundamental reform
rebalancing your Isa portfolio: How to ensure shares, bonds and other holdings don't drift off target
PIMFA welcomes publication of Online Safety Bill but urges Government to do more to tackle clone investment fraud and fake online adverts
Money Marketing: PIMFA chief: New postBrexit regulation supports FSCS reform
PIMFA welcomes inclusion of the Online Safety Bill in Queen’s Speech but urges Government to include financial harms within the scope of the Bill
Citywire New Model Adviser: Blog: FCA should not be in Google Ad bidding war with scammers
FT Adviser: PIMFA launches diversity and inclusion awards
PIMFA's Consultation Responses
PIMFA’s latest Consultation Response is to the FCA on restricting CMC charges for financial products and services claims.
Read this and all other PIMFA consultation papers here.
Upcoming PIMFA Forums
PIMFA Forums provide updates on recent activity and announcements from PIMFA's team of experts and key stakeholders; they also provide behind the scenes details on why things are happening and what we are doing to help members – enabling a broader group to share a wider variety of experiences and best practice across the membership. Our upcoming Forums are: Regulatory Forum – Tuesday 25th May Operations Forum – Thursday 27th May To attend (members only) or for more information please contact Giulia Lupato.
EVENTS & LEARNING
View upcoming PIMFA Events and Learning here.
PARTNER EVENTS
Morningstar Investment Conference 29 - 30 June
The annual Morningstar Investment Conference will be taking place as a digital event again this year, hosted online on 29-30 June. The conference will be FREE for advisers, wealth managers and paraplanners to attend. On the agenda, there will be a focus on ‘back to growth’ and the importance of ESG. The agenda will include Hortense Bioy, Director, Sustainability Research, Global Manager Research at Morningstar presenting on Greenwashing. We’ll also feature a session from foreign affairs broadcaster, Tim Marshall on Geopolitics as well as the importance of a flexible approach when it comes to Fixed Income Investing with Jim Leaviss, Head of Public Fixed Income and Fund Manager of the M&G Global Macro Bond Fund. Find out more and register here.
All reporting firms moved to FCA’s new data collection platform RegData
The FCA has completed the move to RegData, which has replaced Gabriel as their data collection platform, with the last group of firms now moved across. Since the transition began in October 2020, they moved 52,000 firms and 120,000 users to RegData in groups, based on their reporting requirements.
The FCA are keen to hear from firms that have used RegData and invite them to complete a short survey on their experience of the system so far. They are grateful to those who have provided feedback already. They are already using this feedback through RegData’s flexible technology to improve the system’s performance across a number of submissions.
CP21/9 Changes to UK MiFID’s conduct and organisational requirements
The FCA have published a Consultation Paper to gather feedback on their proposed changes to two areas to the conduct and organisation rules in UK MiFID.
They are consulting on changes to the existing inducement requirements for research relating to SMEs as well as to Fixed Income, Currencies and Commodities. They are also consulting on the removal of two sets of best execution reporting obligations on firms. This consultation forms part of wider work that the FCA are working on with HM Treasury concerning capital markets reform.
They are asking for feedback to the CP by 23 June 2021 and responses will be used to help inform their final policy statement.
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