Featured: PIMFA Under 40 Leadership Committee survey 05 August 2024
WEEKLY BULLETIN
The PIMFA Under 40 Leadership Committee (U40LC) is an exciting initiative that brings together talented young professionals from our member firms. These future leaders collaborate within a dedicated community to learn, conduct primary research, and address current hot topics impacting our industry.
The U40LC contributes to the strategic thinking of PIMFA and has been operating in one form or another for over 7 years – creating a plethora of useful insights and research, alongside a network of alumni they can rely on in their future careers.
This year, the committee is investigating several key areas:
• Cost and value
• Accessing new demographics and creating new client bases
• The impacts of mergers and acquisitions on client outcomes
You can support the research endeavours of our U40LC by either asking your staff to complete their SURVEY, and/or sharing across your/their own networks of peers, friends and family to also ask them to fill in the SURVEY
The short SURVEY has been created to gather personal views of savers and investors, not that of businesses, and should only take approx.10 minutes to fill in.
The questionnaire is completely anonymous and confidential, and the more responses we can get the more robust and reliable the findings will be - thank you in advance!
SURVEY CLOSES 9 AUGUST 2024.
Read the research findings and report from last year's cohort HERE.
COMPLETE THE SURVEY
PIMFA Regulatory Forum recording from Wednesday 31 July
The July Regulatory Forum has now been posted on the PIMFA website. The recording includes:
• New Government and Kings Speech
• FCA treatment of politically exposed persons
• PS24/7: Implementing the Overseas Funds Regime
• Advisors’ Sustainability Group (ASG) update
• British Steel Pension Scheme (BSPS) redress update
The recording is available here
If you are from a PIMFA member or associate firm and would like to be added to the distribution list to attend the next Regulatory Forum on Tuesday 24 September, from 3 - 4pm, please contact Heidi Bryant.
New PIMFA Guest Blog: Addressing structural trends within wealth management portfolios
To generate long-term investment returns and help protect client wealth, it is important to consider structural trends.
Here, Sebastian Maciocia, Director of Wealth Management at Mercer, discusses how, by employing a set of basic principles, wealth managers can navigate the challenges and opportunities presented by structural trends.
Read the blog here
Call for Input – Review of Financial Conduct Authority (FCA) requirements following the introduction of the Consumer Duty
The FCA is asking firms to let them know how they can simplify retail conduct rules and guidance, specifically relating to overlap or conflict with the outcomes focused Consumer Duty. With acknowledgement that prescriptive rules can be beneficial, the FCA is also seeking views on which approach is most effective in different scenarios.
The closing date for responses is 31 October and the full paper can be found here. Please contact Julia Sage-Bell if you have any comments or queries.
Financial Conduct Authority Consumer Duty event (31 July 2024)
The Financial Conduct Authority held a Consumer Duty event to mark one year since the Duty came into force on 31 July 2023.
Following a keynote speech by Sheldon Mills (FCA Executive Director, Consumers and Competition) a panel discussion considered its impact, the challenges firms face, and the FCA’s next steps.
Key points from the discussion can be accessed here
The Financial Conduct Authority (FCA) has published its quarterly consultation paper (CP24/11) on proposed amendments to the FCA Handbook.
These include proposals to change retail conduct rules such as:
• Proposed amendments to the retail conduct rules in COBS, including to remove the requirement to report a 10% drop in portfolio value to a retail client so that the requirement does not apply as a rule to optional exempt firms (question 4.1)
• Changing the definition of ‘durable medium’ in the Glossary to reflect amendments to the MiFID Org Reg (questions 4.2, 4.3 and 4.4)
The consultation states that the amendment to the durable medium Glossary definition will impact optional exemption firms, with the FCA proposing this comes into force three months after publication of the final rules, as these firms are likely to already use an electronic communications format for retail clients.
The FCA also advise that retail clients who have already elected to receive electronic communications do not need to be asked if they want to elect for paper-based communications instead.
Access the full consultation here
Members with any concerns or issues regarding these proposals can share their views by contacting the policy team .
HM Government: Amendments to the Sanctions regime - Syria (Sanctions) (EU Exit) (Amendment) (No. 2) Regulations 2024:
These Regulations amend regulation 57 (exceptions relating to petroleum products) of the Syria (Sanctions) (EU Exit) Regulations 2019 (S.I. 2019/792) (the “original Regulations”).
The Regulations came into force on 31st July 2024.
HM Government: Amendments to the Sanctions regime - Russia (Sanctions) (EU Exit) (Amendment) (No. 3) Regulations 2024:
These Regulations are made under the Sanctions and Anti-Money Laundering Act 2018 (c. 13) (“SAMLA”), and amend the Russia (Sanctions) (EU Exit) Regulations 2019 (S.I. 2019/855) (“the 2019 Regulations”).
The Regulations came into force on 31st July 2024.
Financial Conduct Authority: Applications to be a UK UCITS management company
The Financial Conduct Authority (FCA) has published information on how a firm can apply to become a management company for a UK Undertaking for Collective Investment in Transferable Securities (UCITS), setting out the permissions required, and the fees to be paid.
Firms will only be eligible to apply for the permission of managing a UK UCITS if they will be managing an authorised fund established in the UK that is either an investment company with variable capital, an authorised unit trust, or an authorised contractual scheme.
Firms intending on applying for the permission of managing a UK UCITS are advised that prior to making the application they should request a meeting through the FCA’s PreApplication Support Service (PASS)
For further details, access the publication here
Financial Conduct Authority: FCA fee rate movement 2024/25
The Financial Conduct Authority (FCA) has published updated information relating to its fees and levies.
• Overall, the FCA’s AFR has increased in 2024/25 by 10.7%
• The fee rate movements for each fee-block broadly reflect this percentage increase
• Although the FSCS overall AFR has decreased slightly for 2024/25 at £265.0m (down 1.7% from £269.7m in 2023/24) some FSCS classes will see increases in the funding requirements whilst other will see decreases
Access the FCA publication here
Financial Conduct Authority: statutory panels annual reports
The Financial Conduct Authority’s statutory panels (Smaller Business Practitioner Panel, Listing Authority Advisory Panel, Markets Practitioner Panel, Practitioner Panel and Financial Services Consumer Panel) have published their annual reports for 2023/24, setting out four priority areas of work for 2024-25:
1. Sustainability of smaller firms
2. Implementation of the Consumer Duty
3. Responding to the impact of major external shocks
4. Engaging with the Future Regulatory Framework
See the report here.
PRESS RELEASES
PIMFA sets out 5-year agenda for government to create a UK Culture of Thriving Financial Health
PIMFA calls on next Government to create a more attractive environment for investors after
PRESS COVERAGE
Professional Adviser: Unpacking SDR - What portfolio managers need to know
Politics.co.uk: Pensions adequacy review: from commitments to delivery
General Election
PIMFA welcomes significant reduction in FSCS levy
READ MORE
IFA Magazine: PIMFA announces shortlist for 2024 Diversity & Inclusion Awards
READ MORE
PIMFA LEARNING AND EVENTS
19 September 2024
Live Event | 10:00 - 17:00
£250 - £600
PIMFA COMPLIANCE CONFERENCE
This long-standing event is a must for compliance professionals in the wealth management and financial advice world – join us to hear from leading industry experts on the key issues impacting you, your firm and your clients.
08 October 2024
Live Online Learning | 10:00 - 12:30
£2500 - £3000
PIMFA TRANSACTION REPORTING ACADEMY
Accurate and complete MiFIR transaction reporting is a legal obligation. Yet many financial firms, even those with significant resources dedicated to this complex requirement, are falling short of regulatory expectations. Quality
There will also be ample opportunity for lively and practical discussions questions and networking.
Here's a sneak peek of the themes we will spotlight this year:
• ESG Measures
• DE&I Regulation
• Prudential Updates
• CASS
• Consumer Duty
• Vulnerability
• AI Progression
• Crypto & Digital Assets
• Operational Resilience & Critical Third Parties
assurance testing by regulatory specialists Kaizen Reporting has found that only 13% of MiFID II transactions are reported accurately. The consequences of incorrect reporting are serious, and include regulatory scrutiny and sanctions, as well as the significant cost and resource involved in remediating incorrect reports.
The PIMFA Transaction Reporting Academy is an innovative, practical and results-focused learning experience that augments your core reporting skills while deepening your knowledge in key areas of the MiFIR transaction reporting requirements.
Find out more and view the schedule here.