PIMFA News Bulletin - 5 June 2020

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PIMFA NEWS BULLETIN | 5 June 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

WE ARE IN THIS TOGETHER Dear Nigel,

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 1: Fourth round of talks

Brexit 2: European Parliament legal services opinion

The fourth round of UK-EU negotiations on the terms of the future relationship

The European Parliament’s legal service

ended on 5 June with little progress.

responded to UK Chief Negotiator David

Negotiators did not advance discussions

Frost’s claim made in the letter to his EU

on any of the four points that made up the

counterpart Michel Barnier, that the EU

EU's opening requirements in the talks i.e

wants the UK to sign a “low-quality trade

fisheries, level playing field, governance,

agreement” and that it is “hard to see what

and law enforcement and security matters.

makes the UK so unworthy of being offered the kind of well-precedented

David Frost, UK Chief Negotiator, said

arrangements commonplace in modern

that “progress remained limited” but the

trade deals.”

tone of the talks had been “positive.” Michel Bariner, Frost’s EU counterpart,

The European parliament’s legal service

said that “it is not possible to go on like

said that claiming that “the EU is legally or

this forever” and accused the UK of

morally obliged to give certain rights or

backtracking on the Political Declaration.

trade preferences the UK wants is no

Both sides agreed they were close to the

more justified than it would be for the EU

limits of what could be achieved through

to consider that it had a right to specific

remote rounds of negotiations and will

commitments from the UK”. It added that

consult the Commission on how to

there is no clause in global trade law that

intensify, accelerate and make the talks

would substantiate such claims. While the

more effective.

European Parliament does not have an active role in negotiations, it is regularly

The UK and EU high level stock-taking

briefed on the talks by Michel Barnier and

meeting is due to take place later in June.

it will have to ratify the final agreement

Prime Minister Boris Johnson is expected

before it comes into effect.


to attend but the date has not been set FCA publishes further steps on

yet.

Defined Benefit (DB) transfers Brexit 3: Bank of England The FCA has published a package of measures designed to address perceived The Bank of England (BoE) has urged the

weaknesses across the DB transfer

UK’s retail lenders to intensify

market.

preparations for the UK ending the transition period on 31 December this year

These measures include a ban on

without a deal with the EU. “The possibility

contingent charging as well as further

that negotiations between the UK and EU

measures to provide guidance for advisers

over a future trading relationship might not

as to advising on transfers confidently and

conclude in a deal is one of a number of

providing good quality of advice. We are

outcomes that UK banks need to prepare

still assessing the impact of these

for over the coming months," the central

measures.

bank said in a statement. Please contact Simon Harrington with any It was reported earlier this week that BoE

queries, and the full Policy Statement can

Governor, Andrew Bailey, said during a

be read here.

call with chief executives of the UK’s big banks that they should accelerate their nodeal preparations. If there is no agreement

PIMFA Learning Library

between the UK and EU, the two sides will

Webinars & Podcasts

have to trade on the World Trade Organisation terms.

Click below or visit the PIMFA Learning Library to listen to on-demand recordings

Your Cyber Security During COVID-19

of podcasts on topics such as: •

How to manage, protect and enhance your reputation during

The National Cyber Security Centre has warned firms implementing remote working practices to ‘be aware of email

COVID-19 •

Identifying and supporting vulnerable clients

scams and to encrypt/protect sensitive data’, Beyond Encryption is a PIMFA Plus

Members can also log in to watch on

member and provides secure encryption

demand webinars related to COVID-19, Wellbeing, Cyber Resilience, SM&CR,


to safeguard the data within your emails,

Money Laundering etc.

read more here. Please click here if you have forgotten Warning: alarming new trend in

your password or to create a free user

ransomware attacks

account.

Our PIMFA Plus member, Mitigo, reports that foreign cyber criminal gangs are

PIMFA Website:

targeting financial services firms using

COVID-19 Information

new tactics. Theft of data is followed by encryption. Ransom demands for decryption are followed by threats to

Visit our members only COVID-19 web

publicly release, bit by bit, the confidential

area for latest information on the virus, to

data of the firm and its clients. Read more

access webinar recordings, download

here.

briefing notes, and view the latest global response tracker.

Joint Money Laundering Steering Group (JMLSG) Guidance

On the 1st June 2020, the JMLSG published its final amendments to Part I, Part II and Part III of its Guidance. This sets out what is expected of firms and their staff in relation to the prevention of money laundering and terrorist financing.

The Board-approved revisions take account of comments received on the consultation text that was published in February 2020 and have been submitted to HM Treasury for Ministerial approval.

You can read the revised guidance here.

LATEST PIMFA BLOGS & PRESS RELEASES

Regulator working on how to avoid ‘lumpy bills’ for firms in future, FCA Executive Director of Supervision, Megan Butler, tells PIMFA’s Virtual Fest

Financial services has a chance to help consumers in the aftermath of COVID-19, Baroness Morgan tells PIMFA’s Virtual Fest


UN Special Envoy Mark Carney says financial services sector has ‘jumped ahead of government’ on issue of climate change at PIMFA’s inaugural Virtual Fest

Treasury’s John Glen signals government stands ready to do ‘whatever is needed’ to support financial services at PIMFA’s inaugural Virtual Fest

Blog: ESG and Covid 19

PIMFA’s Virtual Fest adds Treasury’s John Glen and FCA’s Megan Butler to panel of keynote speakers

EVENTS & LEARNING

VIRTUAL FEST The inaugural PIMFA Virtual Fest took place earlier this week on 3 and 4 June 2020. If you missed it, you can still catch up with all the sessions using our on-demand service for 2 months. Simply register your place to gain access. The content is FREE to members, (paid for tickets are also available for non-members).

Catch up with sessions 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.

ALL SESSIONS AVAILABLE ONDEMAND. 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 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

European Union Shareholder Rights Directive (SRD II) revision

The revised European Union Shareholder Rights Directive (SRD II) amends the existing directive from 2009, to enhance the rights of shareholders and imposes certain minimum standards on the exercise of shareholder voting rights at EU listed companies. SRD II will require certain disclosure requirements for EU asset managers and asset owners on engagement and investment strategies for investors in European Economic Area (EEA) companies. It will also include shareholder identification and data transmission requirements for intermediaries and for issuers, and provides for improved transparency and approval procedures for related party transactions and executive remuneration.

The overall aim of SRD II is to enhance information flow across the institutional investment community and promote common stewardship objectives between institutional investors and asset managers, whilst also improving issues of transparency for issuers, investors and intermediaries.

On 9 April 2020, joint trade associations wrote to the European Commission (EC) relating to the impact of COVID-19 on the further implementation of SRD II and requesting an extension to the September implementation date. The EC responding, on 27 May 2020, declined to agree to an extension and expressed its confidence that “all intermediaries and listed companies have had sufficient time to plan and prepare to comply with the new EU rules as from 3 September 2020, synchronously throughout the EU and the EEA”. For further information, please contact Des FitzGerald.

FCA publish final rules and guidance on Pension Transfer advice


The FCA have published new rules and guidance on pension transfer advice, particularly defined benefit (DB) to defined contribution (DC) transfers. These include reducing the conflicts of interest created by current charging structures and enabling firms to give high quality advice, creating a more sustainable market for the long term. This Policy Statement forms part of a wider package to improve the suitability of pension transfer advice. They are publishing it alongside Guidance Consultation GC20/1 and the findings of their multi-firm review into the suitability of pension transfer advice.

Read the full Policy Statement here.

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