Featured: MSCI PIMFA Index Series New Asset Allocations, Upcoming Working Groups and Forums
25 November 2024
MSCI PIMFA Index Series: New Asset Allocations Effective 26 November 2024
The PIMFA Indices Committee met recently and agreed changes to the portfolio weights of the MSCI PIMFA Index Series’.
These changes will become effective Tuesday 26 November 2024.
• To view the decisions taken for the MSCI PIMFA Private Investor Index Series, click here.
• To view the decisions taken for the MSCI PIMFA Equity Risk Index Series, click here
Note: the respective Current Asset Allocations pages will be updated after 18:00 on Monday 25 November 2024.
PIMFA Regulatory Forum: Tuesday 26 November 2024
The next Regulatory Forum will take place online on Tuesday 26 November 2024 from 15:0016:00.
The agenda includes:
• Mansion House Overview:
o The Financial Conduct Authority (FCA) Call for Input: Modernising the Redress System
o HM Treasury (HMT) Call for Evidence: Financial Services Growth & Competitiveness Strategy
• FCA Enforcement Proposals Update
• FCA Dear CEO letter for SIPP Operators
• HMT Consultation on Inheritance Tax on Pensions
• HMT Consultation on UK Green Taxonomy
• HMT Consultation Response on Future Regulatory Regime for ESG Ratings Providers
• The Financial Reporting Council (FRC) Consultation on Updates to UK Stewardship Code
PIMFA Forums are open to representatives from all PIMFA Member and Associate firms. If you or any of your colleagues would like to attend the Regulatory Forum and are not currently on our distribution list, please email Heidi Bryant
PIMFA Cyber Security and Operational Resilience meeting: 'Cyber attack scenarios and their impact on maintaining Operational Resilience'
Join us on 28 November from 15:00 - 17:00 at JM Finn, 25 Copthall Ave, London, for a meeting of the Cyber Security and Operational Resilience Working Groups.
We will be exploring the impact of cyber attacks on wealth management firms, with insights from Ken Munro of PenTest Partners and Inspector Charlie Morrison from the City of London Police. Attendees will have the opportunity to discuss attack scenarios, share knowledge, and consider response and recovery strategies.
If you are from a PIMFA member firm and wish to attend, please email Maria Fritzsche
The FCA has published a discussion paper on improvements to Transaction Reporting. The aim is to enhance data quality and reduce reporting burdens, aligning with international standards. This initiative, based on the UK Markets in Financial Instruments Directive (MiFID), aims to improve market cleanliness, transparency, and resilience.
With a deadline of 14 February 2025, the FCA will consider feedback and consult on proposed changes before finalising new rules. Key areas of focus include clarifying reportable instruments, addressing operational challenges, and improving data quality through new identifiers and fields. An opt-in register for small firms is also being considered.
We will discuss the paper at our next Transaction Reporting Working Group meeting, which will be held via Teams, on Thursday 12 December between 11:00 - 13:00. If you are from a PIMFA member firm and would like to attend, please email Maria Fritzsche or Kevin Sloane
Next PIMFA CASS Working Group Meeting Tuesday 10 December 10:00 - 12:00 via Teams
The group will be joined by Rob Johnston, Senior Manager at PwC, who will present on the findings of their recent CASS audits, followed by a Q&A session.
If you are from a PIMFA member firm and wish to attend the CASS Working Group, or you have any CASS-related questions to raise at the meeting, please email Maria Fritzsche or Kevin Sloane.
FCA PS24/16: Operational Resilience: Critical Third Parties to the UK Financial Sector
The Bank of England, the FCA and the PRA have recently published a joint policy statement on operational resilience for critical third parties (CTP) to the UK financial sector. The policy statement outlines the final rules and guidelines for ensuring these entities can maintain essential services during disruptions. It requires CTPs to comply with specific rules on governance, risk management, technology and cyber resilience, incident management, and supply chain risk management.
The rules take effect from 1 January 2025, with transitional periods for certain requirements. HMT will be making the final decisions on which third parties are considered a CTP. The financial regulators agreed on how they will coordinate their work on CTP functions, which includes a joint CTP Consultation and Coordination Forum. For more details, please see the Memorandum of Understanding.
The full policy statement can be found here.
FCA Feedback: Advice Guidance Boundary Review statement
The FCA has published a feedback statement on the Advice Guidance Boundary Review setting out their updated approach to help people access financial and investment support.
The statement notes that the FCA:
• Want firms to consider how they can better support their customers
• Will engage directly with small advice firms in 2025 to gauge the willingness and capacity of these firms to offer a simplified advice service
• The Government and the FCA will keep these options under review as the proposals for a targeted support regime develop.
Noting the wider context, the FCA intends a new retail disclosure regime to be in place in H1 2025, subject to the consultation process and will consult on proposed rules for the Consumer Composite Investments regime in 2024.
Interested firms can contact the FCA and test propositions in digital sandboxes.
Read the full statement here
The FCA, ICO and TPR Joint statement for Retail Investment Firms and Pension Providers
The FCA, Information Commissioner's Office (ICO), and The Pensions Regulator (TPR) have published a joint statement.
The aim is to provide greater clarity for firms to support their customers decision-making through their communications (in line with the FCA Consumer Duty and TPR’s Code of Practice and Guidance).
The regulators joint position is set out in the statement:
• Firms and pension scheme trustees or managers can provide regulatory communication messages to customers even if they don’t have direct marketing permissions from them, (provided these are not direct marketing) to give neutral, factual information that supports them to make informed decisions about retail investments and pensions options, including at retirement.
• As the context and content of the message must be considered, firms should refer to the ICO’s direct marketing and regulatory communications guidance.
• UK data protection laws do not stop firms from sending these regulatory communications. However, firms must ensure that they comply with data protection requirements.
Read the full statement here
Financial Services Compensation Scheme Report: Outlook November 2024
The Financial Services Compensation Scheme has published the latest edition of its Outlook report, setting out an update for the 2024/25 levy as well as the 2025/26 levy forecast.
The 2024/25 levy remains unchanged at £265m and the initial forecast for the 2025/26 levy is £394m.
Access the report here
Financial Services Skills Commission Industry Survey 2024
The Financial Services Skills Commission’s (FSSC) annual industry survey offers insight into skills challenges across the industry and highlights what future skills are required for the sector to remain competitive.
Aimed at HR and learning professionals, or senior decision-makers, the survey consists of around 20 questions and will take 10-15 minutes to complete, and closes on 2 December
2024.
Please respond to the survey here.
FSSC members have received a separate survey link and do not need to respond to this survey unless it is to represent a specific regional office. You’ll be asked questions about:
• Skills supply and demand
• The impact of Generative AI and Net Zero
• Skills forecasting and reskilling
All data submitted will be treated as confidential and is covered by their data policy statement. Findings will only be presented in aggregate form, and no individual responses will be shared with other firms.
For any questions, please contact the Commission’s Policy and Research Manager Katharina Ehrhart. The Commission will also offer an optional drop-in session for all survey respondents on 19 November from 15:00 - 16:00. Thank you for your participation and support.
