PIMFA Weekly News Bulletin
PIMFA WEEKLY NEWS BULLETIN
30 May 2023
PIMFA Report – ESG Investing Approaches
PIMFA, in collaboration with Alpha FMC, have conducted a survey of the membership to gain insights into firm's ESG investing approaches and client and investor sentiment, the results of which have been captured in a PIMFA member only report containing a plethora of useful insights.
The Report can be found here
ESG - PIMFA Member Support
In addition to the above report, we have also launched a new Sustainable Finance and ESG investing microsite which contains:
• PIMFA thought leadership
• Updates, overviews and insights on regulatory work being undertaken nationally and internationally
• Info on the Task Force on Climate-Related Financial Disclosures (TCFD)
• Info on Sustainability Disclosure Requirements (SDR)
• Info on the Government’s Green Finance Strategy
• Info on the FCA’s ESG strategy
• Details on how to get involved in PIMFA’s Sustainable Finance Working Group
Featured: PIMFA Report - ESG Investing ApproachesPIMFA responds to FCA DP23/2: Updating and improving the UK regime for asset management
“PIMFA believes that it is premature for the FCA to be outlining proposals for major changes to specific areas of regulation that are likely to see significant improvements in consumer experience as the four Consumer Outcomes take effect.
As well as imposing substantial costs on industry (and, ultimately, consumers), a perpetual programme of major regulatory change distracts firms from their core business of providing the best possible products and services for consumers and also makes them query whether the FCA is effectively downplaying the benefits likely to result from the Consumer Duty before it is even fully implemented.”
The full response is available here
FSCS: Latest Outlook update
The Financial Services Compensation Scheme (FSCS) has published its latest Outlook update, with revised compensation and levy forecasts for 2023/24. The forecast levy has reduced to £270m due to an increased surplus from the 2022/23 levy being carried over into the following year, and an overall decrease to the compensation forecast for 2023/24 of £121m.
PIMFA welcomes the reduction in the FSCS levy but has urged the Regulator and the Treasury to consider a longer-term solution to the compensation framework. We have renewed our call for the Treasury to recognise the burden placed on well-run firms and proposed a “polluter-pay” model which diverts FCA fines that are currently going to the Exchequer Consolidation Fund to the FSCS instead.
Access PIMFA’s press statement on the FSCS Levy Forecast here
Access FSCS Outlook May 2023 here.
FCA – Implementing the Future Regulatory Framework Review
The FCA has set out seven provisional drivers of productivity contributing to international competitiveness and growth as a part of implementing the outcomes of the Future Regulatory Framework Review. Among them, the FCA will lead on operational efficiency and proportionate regulation, while the UK financial market shall be driven by effective competition, innovation, trust and reputation in the UK, market stability and effectiveness, and playing a role in international markets.
At the same time, the FCA will add metrics to measure their performance against the new secondary objective and will seek to consider inputs to the Treasury’s call for proposals – Financial Services Regulation: Measuring Success.
Please contact Simon Harrington should members wish to express their views on this.
Access the full release on the FCA Website
FCA research – Dating vs Investing?
The FCA has published findings from new research surveying 1,000 young investors who also use online dating platforms. It shows that young investors think longer-term and are less influenced by social media when dating compared to their investing behaviours.
The findings also briefly explore young investors’ mindset about quick returns on investing versus when choosing a lifetime partner, and their comparative performance on how they spot and act on the red flags in dating and in investing. Lastly, the findings shed a light on the role of social media and online presence when young people consider investing.
FCA authorisation process
The FCA published a new home webpage on authorisation (e.g. how to apply for authorisation, support for newly authorised firms) and links to:
• how to apply for authorisations (updated)
• Preparing your firm’s financial information
• Authorisations and registration application fees (updated)
Policy Recommendations for Crypto and Digital Asset Markets
IOSCO has set out how clients should be protected and how crypto trading should meet the standards that apply in public markets.
The International Organization of Securities Commissions (IOSCO) has published a consultation paper (CP) on Policy Recommendations for Crypto and Digital Asset Markets. IOSCO sets out 18 policy recommendations covering six key areas, consistent with IOSCO Standards, including market manipulation, insider trading and fraud, cross-border risks and regulatory cooperation, custody and client asset protection, retail access, suitability, distribution and operational and technological risk.
Comments on the consultation paper should be sent to cryptoassetsconsultation@iosco.org on or before 31 July 2023
Central bank digital currencies
On 25 May 2023, a group of central banks, together with the Bank for International Settlements, published a paper on central bank digital currencies (CBDC): ongoing policy perspectives
Key messages:
• Development of CBDC work requires careful consideration and engagement with a wide range of stakeholders, including the private sector and legislators.
• To successfully meet its public policy objectives, a CBDC ecosystem should allow a wide range of private and public stakeholders to participate and, in doing so, deliver services which benefit end users.
• The complex design questions and the potential risks arising from the implementation of any CBDC require careful consideration
• The evolving payments landscape requires central banks to give some consideration to how CBDCs may be used for wholesale and cross-border use cases
Market Abuse Regulation
Associate member, SIX, have shared thought leadership on Market Abuse Regulation. Members can access articles and a product overview of SIX’s trade surveillance module via the links below:
• Homepage for SIX’s SICAM Surveillance Solution
• LinkedIn Post on Trade Surveillance Software SICAM Global Launch
• LinkedIn Post on Transaction Modelling and Market Abuse
JMLSG Consultations - amendments relating to discrepancy reporting and mitigation of impersonation risk
The latest JMLSG consultation has now been published. The return date for comments is 26th June. Links to the news and consultation pages are as follows:
JMLSG Guidance Part I can be found here
JMLSG Consultation pages can be read here
Career Intelligence Academy – New, free audio programme
Creating a career path as unique as you are, whether you're employed, working for yourself, or just starting out, means navigating a lot of uncertainty & change. One of the key challenges many people face is knowing what they really want in the context of their life overall, and how to move in that direction from wherever they are today.
21 Lines of Inquiry is a brand new audio programme, hosted by Anita Rolls, which has been created specifically to help you start exploring this for yourself.
All that is required of you is 10 mins a day for 21 days (starting 1 June) to listen to the audio of the day and reflect on the question posed.
Sign up here
PIMFA is proud to be partnering with the Morningstar Investment Conference London this year
To join us on 4 July register here.
The discounted early-bird price to attend is £19, thereafter £99. Register now to secure your place and save £80 if you register before 31st May 2023!
PRESS RELEASES
FCA proposals to align rules for fund managers and
Wealth managers and advisers want more support in
PIMFA welcomes reduction in FSCS levy but a longer term...
READ MORE
PRESS COVERAGE
Citywire Wealth Manager: Pimfa warns FCA proposals pose
Professional Adviser: FCA could make firms' ability to offer MPS
Money Marketing: Advice firms want more support in...
FT Adviser: FSCS levy cut only ‘short-term respite’ for firms
The Wealth Net: Wealth managers want support
READ MORE
EVENTS & LEARNING
6 JUN
PIMFA WEBINAR: CYBER RISK MANAGEMENT – HOW COMPLACENCY CAN RUIN YOUR REPUTATION
6 JUN
PIMFA WEBINAR: HOW FIRMS CAN SUCCESSFULLY TAKE THE WORRY, FRUSTRATION AND STRESS OUT OF THEIR CASS AUDIT
