Featured: PIMFA Consumer Duty Working Group returns on Thursday 8 February
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29 January 2024
PIMFA WEEKLY BULLETIN PRESS RELEASES
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PIMFA Consumer Duty Working Group returns on Thursday 8 February Our next Consumer Duty working group session will take place on Thursday 8 February between 11:30am-12:30pm. This session will be led by our associates Square 4 and we will be discussing the challenges closed products might face due to legacy systems and records, as well as lessons to learn from successful open product implementation activity. Square 4 will lead the discussion on target market determination, product approval processes, fair value assessments and consumer harm, as well as data and MI. Any members who wish to join the session, please contact Alexandra Roberts or Yasmin Ataullah.
PIMFA Operations Forum – Recording from Thursday 18 January now available The January Operations Forum has now been posted on the PIMFA website here. The recording includes: • CREST update – latest news from Euroclear - Charlie Pugh / Glenn Cooper, Euroclear • Regulatory update – Alex Roberts, PIMFA • Shell plc – election for sole electronic notification of all non-dividend related corporate events – Paul Vos, Senior Manager, Structured Finance, Shell International BV • T+1 / Accelerated Settlement Taskforce update – Kevin Sloane, PIMFA
If you are from a PIMFA member or associate firm and would like to be added to the distribution list to attend the next Operations Forum on Thursday, 29 February from 3pm to 4pm, please contact Heidi Bryant.
PIMFA is delighted to be launching our Women’s Symposium on 16 and 17 April this year! The inaugural annual summit is dedicated to the investment management, financial advice and wealth management communities, and will feature cutting edge thought leadership, high profile speakers, and lively discussions on a range of topics, aiming to create a safe space for professionals to network, learn and share best practice from across their professional world. The symposium is FREE to attend for PIMFA members and associate members and solely funded by our wonderful sponsors, and we encourage individuals at all stages of their career, from Chief Executives to Interns, to join us for two days of motivational talks, regulatory updates, industry panels, personal development roundtables and thought-provoking content related to our industry, and to career development.
BOOK YOUR FREE TICKETS NOW
New PIMFA Guest Blog – ‘Changes are afoot: The ones to watch in 2024’
The pace of regulatory change shows no sign of slowing down so Vicky Pearce, Director at PIMFA Associate member B-Compliant, has posted a new Guest Blog highlighting the hot topics that she feels will be keeping us busy in the next 12 months. This can be read here.
Financial Crime: Money Laundering Regulations
HM Government has amended The Money Laundering and Terrorist Financing (High-Risk Countries) (Amendment) Regulations 2024 with regard to the definition of 'high-risk third country' in regulation 33(3)(a). A 'high-risk third country' for the purposes of the MLRs will now mean a country named by the Financial Action Task Force (FATF) from time to time on lists it publishes: on the list of High-Risk Jurisdictions subject to a Call for Action or the list of Jurisdictions under Increased Monitoring. The Statutory Instrument came into force on 23 January 2024 and is accompanied by an explanatory memorandum.
FCA Chief Executive’s speech: Leaning in on making consumer tech a force for good On 23 January 2024, the FCA published a speech delivered by its Chief Executive Nikhil Rathi on making consumer tech a force for good. Key points raised include: •
The FCA must use and adapt its existing regulatory tools to protect consumers and markets while making sure it continues to embrace innovation to address the rise of technology in financial services.
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The regulator needs to be aware of competition impacts and ensure ‘big data’ is not the preserve of Big Tech, noting that a digital identity authentication system and a commitment to Open Data could boost productivity and increase consumer confidence in data use.
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Innovation for better products and services needs to be balanced with an appetite for risk between policymakers, industry and consumers as not all risk that arises from the rapid adoption of new technologies can be mitigated.
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Financial Services firms should use consumer facing technology to enhance financial inclusion and security of data and services.
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Given the data acquired (from both consumer and merchant) by Buy Now Pay Later (BNPL) firms as an area of risk requiring regulation.
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The FCA should be at the forefront of enabling technological innovation, recognising that data is the preserve of the consumer and (with their consent) should be open to all, not just the Big Tech firms.
Financial Stability Board: Call for papers on AI in finance The Financial Stability Board (FSB) has issued a call for papers on artificial intelligence in finance, to be discussed at the 2024 annual meeting of the Central Bank Research Association (CEBRA). The FSB state Artificial Intelligence (AI)-driven technologies could profoundly influence how financial institutions operate and manage risks: •
There is potential for AI to contribute to a more efficient financial system and help improve regulatory compliance and supervisory effectiveness.
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The use of AI could also entail financial stability risks – for example, from market concentration, network effects and scalability that may give rise to new third-party dependencies.
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The rapid evolution of AI models used by financial institutions and their service providers raises questions about the long-term implications for financial stability.
Authors are invited to submit papers that analyse and provide insights on use cases of AI in finance from the perspective of potential benefits and risks. Of particular interest are papers that examine the extent to which the broader use of AI may have an effect on financial stability, including potential mitigants available to address associated risks. Papers should be submitted on the CEBRA website by 10 March 2024.
FCA industry engagement - CP 23-24 Capital deduction for redress The FCA are keen to engage with firms in relation to their proposals set out in CP23/24: Capital deduction for redress and will host a webinar for all personal investment firms on Tuesday 6 February (in addition to a series of in-person roundtables in various locations). For more information and to register click here.
The FCA’s new Form A The FCA is rolling out the improved Form A to more firms following great feedback from the initial launch. The new version of Form A has many benefits including easier navigation, improved guidance and features to help firms fill in the application quicker. Users have described it as “much easier to use”, “excellent” and “a great improvement”.
More information about using the new Form A can be found on the FCA webpage, including an explainer video and FAQs. Key Information for Firms •
An email will come from gateway.userresearch@fca.org.uk containing a link to the new Form A
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Firms contacted should use the new form to submit standalone applications going forwards (those not related to an Appointed Representative, New Authorisation or Variation of Permission application)
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Applications related to an Appointed Representative, New Authorisation or Variation of Permission application will be updated in due course
If you are contacted by the FCA in relation to the above, please use the improved version and provide feedback to the FCA. If you have any issues or questions, get in touch with Alexandra Roberts.
PRESS RELEASES
PRESS COVERAGE
PIMFA’s Under 40 Leadership
Money Marketing: FCA creates
Committee report reveals need for
sustainable finance working group for
advice industry to focus on the future
advisers
PIMFA welcomes FCA proposals for
Citywire New Model Adviser: FCA
Sustainability Disclosure
kicks off advice ESG project with
Requirements
Dreblow and Godfrey appointed
PIMFA welcomes the Financial
FT Adviser: Simpler charges and less
Conduct Authority’s proposals for
jargon: how IFAs comply with
improving financial advice to
consumer duty
consumers
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PIMFA LEARNING
06 February to 10 July 2024
27 February 2024
Academy
Live Online Learning | 09:30 - 12:30
£3750 - £4250
£250 - £350
AUTHENTIC LEADERSHIP: HOW TO
PRODUCT GOVERNANCE: WHAT DOES
THRIVE AS A FEMALE LEADER IN
GOOD LOOK LIKE UNDER CONSUMER
WEALTH AND FINANCE
DUTY?
The PIMFA’s Authentic Leadership
By the end of the session, you will be able to:
programme is a six-month programme divided into six training modules designed specifically for our industry professionals to share
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Provide added confidence to the business that your firm has in place effective risk assessment and mitigation strategies in the product lifecycle [that complies with the enhanced product governance rules]
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Demonstrate to the FCA that your firm has a robust approach product approval process.
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Assure the Consumer Duty champion and Senior Managers that your firm continues to deliver fair value and outcomes for clients – including those with characteristics of vulnerability.
experiences and practice tools for advancement. It also provides a place for inspiration, support and motivation to help people achieve their goals. This ground breaking programme is unique within the wealth and finance sector and focuses on the three key themes of Poise, Purpose and Partnership, which are key for career fulfilment and success. Delivered virtually by executive coach, Caroline Holt, the 6 month programme is designed to equip women with the attitudes and behaviours that will enable them to find sustainable and stress-free ways of embracing and enjoying greater success, it is also endorsed by The
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Institute of Leadership & Management and CPD accredited by the CISI.
Benchmark against your peers how effective your firm is in identifying consumer harms.
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