PIMFA News Bulletin - 7 May 2020

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PIMFA NEWS BULLETIN | 7 May 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 << Test First Name >>,

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 Talks

PIMFA Podcasts & Webinars Library

The second round of the UK – EU talks held in the week of 20 April did not

Each week we are running our members

manage to bridge gaps between the two

only Webinar Wednesday on key topics

sides. The next round of negotiations is

impacting our members due to COVID

scheduled to take place in the week of 11

19. This week we discussed

May. At the same time, the technical work

Reviewing the Approach to Vulnerable

on equivalence decisions is going well

Clients during COVID-19. Members can

and, according to the Bank of England’s

watch this webinar and the others in

Deputy Governor Sam Woods, the work is

series (inc governement reactions,

already ‘very far advanced.’ As set out in

investments scams & FCA updates) on

the Political Declaration, the UK and EU

demand or read our briefing notes

will aim to conclude the equivalence

here. Next weeks episode will be on ESG

assessment by the end of June 2020.

& COVID-19.

However, the EU has already said that a decision on equivalence will not be taken

Recordings of open access podcasts and

by that date and insists that such a

webinars, on topics such as staff

decision has to take into account any

wellbeing, Cyber Resilience & COVID-19,

future divergence in UK financial rules

SM&CR etc, can all be accessed in our

from the EU rules.

learning library.

For more information, please contact Maja Erceg.

Protect Your Remote Communications During COVID 19

Update: Euroclear Crest Courier and Sorting Service (CCSS)


As previously reported, the courier

As we adapt to remote working and video

company TNT, which has been working

conferencing as the new norm there has

with Euroclear to deliver the CCSS

been rising concerns about the risks of

service, has advised Euroclear that they

virtual meetings. As a result, Mitigo has

do not wish to renew the service contract

produced a brief summary of the guidance

when it expires in December 2020. TNT

they give clients to stay secure, which can

has been acquired by Fedex and CCSS

be read here.

no longer fits their business model. The National Cyber Security Centre has Euroclear are working hard to identify a

also warned businesses implementing

new solution which works for all parties.

remote working practices to ‘be aware of

Ideally, that would be a digital solution

email scams and encrypt/protect sensitive

involving scanning and electronic

data’, Beyond Encryption has taken the

transmission of

decision to offer FREE and fully featured

documentation. However, given the

user licences for a period of 2 months to

timescales and the inevitable disruptions

enable you to safeguard the data within

caused by the Covid-19 pandemic, plus

your emails. More information is available

regulatory issues and questions around

here.

liability, Euroclear have concluded that it won’t be possible to implement a digital solution in time for a December 2020

UK – US Trade Talks

launch. They are now reviewing other options.

On 5 May, the UK and the US started ‘accelerated’ talks on the future free trade

PIMFA has a CCSS working group and

agreement. In the joint statement, the two

Euroclear have kindly offered to give a

sides said they are committed to secure

fortnightly conference call update on their

an ambitious agreement that will boosts

progress in identifying a solution.

trade and investment. The UK and the US already enjoy almost tariff free trade for

If you or a colleague would be interested

their major exports and any economic

in joining the fortnightly update calls,

gains from the agreement will be modest.

would you please email

The UK’s own assessment is that the

mikec@pimfa.co.uk and we will add your

deal’s long term boost to the economy will

details to the working group database.

be around 0.1%.

Priorities for the Government include the financial services sector in order to secure


more access for UK financial firms to the Transport for London survey: Getting us back to work

US market. Historically, the US does not address the financial sector in its trade deals and getting anything from the US on

Transport for London (TFL) has asked

financial services will not be easy.

businesses to complete a survey to help

However, a deal could lead to closer

inform its plans to assist with the return to

working on financial services regulation in

work after the COVID-19 restrictions are

the future. The UK Government would

eased.

also like the US to become a market for its digital industries although the UK plan for

TFL is planning to get London moving and

a tax on tech giants may prove a barrier.

working again, safely and sustainably.  As

The first round of talks with 100

part of a phased return to work once the

negotiators on each side will last two

current COVID-19 restrictions begin to be

weeks and further sessions will be held

lifted we will need to manage demand on

every six weeks.

the network and protect the journeys of key workers and other essential

For more information, contact Maja Erceg.

journeys.  To help they are seeking insight into the challenges and opportunities for

COVID-19 Information Web Areas

your business and employees.  We would be very grateful if you could kindly spare 3-5 minutes to complete this short

PIMFA have public and members only

business survey. Your response will be

web areas that provide the latest

anonymous and held in confidence.

information on COVID-19. For members only, they can visit their web area to

Please share this widely with other

access webinar recordings, meeting

business contacts before the survey

notes, latest global response tracker,

closes at 17:00 on THURSDAY 14 MAY

latest health statistics, updates from the

2020.

CBI and much more.

Sustainable Finance and Taxonomy

The House of Commons EU Committee published a letter to John Glen, Economic Secretary to the Treasury, on the proposed EU Taxonomy Regulation. The letter notes the EU Taxonomy Regulation may not apply in the UK because it will only


come into force at the end of 2021. The Economic Secretary previously stated the UK government attached great importance to the taxonomy and sustainable finance in general. The EU Committee asks Mr Glen to reply by the end of May, and offer clarification on whether or not the UK government is preparing to set up a similar legally-binding sustainability taxonomy for investment products in the UK.

This is an important point as the transition is due to end in about seven months and if the UK does intend to implement a UK version of the Taxonomy it doesn’t leave a lot of time to provide clarity so firms can prepare or to know what they are preparing for.

The letter can be read in full here. If you have any queries please contact Des FitzGerald.

LATEST PIMFA BLOGS & PRESS RELEASES

UN Special Envoy Mark Carney and Baroness Morgan of Cotes join PIMFA’s inaugural Virtual Fest as keynote speakers

PIMFA welcomes Rt. Hon. Jim Murphy to Webinar Wednesday

PIMFA to provide consumer advice on how to avoid scams as part of Financial and Mental Wellbeing campaign

Blog: Tech and the fight against Financial Crime

PIMFA launches first ever Virtual Festival in June

Blog: What does Market Abuse REALLY look like for Wealth Managers

EVENTS & LEARNING Due to the COVID-19 crisis we have decided to postpone all physical events until further notice. Workshops will still be taking place online via Zoom or may be postponed.

Webinars and podcasts will be continuing and will be delivering content online in the coming weeks. We will be updating the website regularly and scheduling new dates. If you have any queries, please contact us at events@pimfa.co.uk.


VIRTUAL FEST We are delighted to announce that registrations for the PIMFA Virtual Fest are now open. Taking place entirely online, this free (to members only), 2 day immersive experience, is an excellent opportunity for industry colleagues to network and hear from high profile experts such as Mark Carney and Baroness Morgan of Cotes (Nicky Morgan) on topical areas which you have identified to us as key priorities for the profession.

The PIMFA Virtual Fest will take place on 3-4 June so please save the date. Registration opens soon! 3-4 June | 2 Full Days Click here to find out more

WEBINAR WEDNESDAY - ESG INVESTING & COVID-19 Our members-only Webinar Wednesday’s are a live, concise update on the latest issues effecting you and your firm during the COVID-19 pandemic. In this episode, PIMFA senior policy analysts Des FitzGerald & Maja Ercej will discuss the impact on ESG investing during the COVID-19 pandemic. In particular we will look at: •

Impacts on staffing and other stakeholders

AGM’s and transparency


Allocating capital

Regulatory convergence

and more.

You can register on the website.

LATEST PIMFA CONSULTATION RESPONSES

PIMFA’s latest consultation response is to the Charity Commission regarding how charities approach investing in line with their purpose and values. Read this and all of our other PIMFA consultation papers here.

WHAT'S HAPPENING IN OUR INDUSTRY

Sustainable Investing in Wealth Management: Online Course June 3-5, 2020

This course, presented by the University of Zurich's Centre for Sustainable Finance and Private Wealth and based on a training program with high net worth investors, is specifically designed for practitioners working in wealth management, such as partners, managers and relationship managers at wealth managers, banks and multi and single family offices. It delivers clear frameworks on how to understand the product landscape, advise clients more efficiently and effectively and build strong relationships.

More information is available here.

FCA: Financial crime systems and controls during coronavirus situation

The FCA have published a statement about their expectations on how firms should apply their systems and controls to combat and prevent financial crime during this crisis.

The statement can be read here.


FCA publishes modification relating to Senior Managers and Certification Regime (SM&CR)

The FCA has published a modification by consent to SUP10.3.13 and SYSC24.1.2 relating to the Senior Managers and Certification Regime (SM&CR). The modification is available for solo-regulated firms. It extends the maximum period a firm can arrange cover for a senior manager without being approved from 12 weeks to 36 weeks, over a consecutive 12-month period.

The FCA is also allowing firms to allocate an absent senior manager's prescribed responsibilities to the individual covering the role. The modification by consent takes effect from the date of application and will end on 30 April 2021. The FCA has also updated its webpage on its expectations relating to the SMCR for solo-regulated firms during COVID19 to take account of the modification by consent.

This modification is available in order to provide flexibility for governance arrangements during the coronavirus pandemic. It also allows firms to allocate an absent senior manager’s prescribed responsibilities to the individual covering the role.

Firms will be able to use the modification if they think they have a need to make or extend temporary arrangements in order to cover absences occurring as a result of coronavirus. An example, could be if a senior is absent, or if recruitment to replace a senior manager is delayed. Firms can also apply for the modification as a precautionary, prior to actually having a need for it.

If you have any queries relating to SM&CR, please contact Des FitzGerald.

www.pimfa.co.uk Personal Investment Management & Financial Advice Association (PIMFA) 22 City Road, Finsbury Square, London EC1Y 2AJ (registered in England No 2991400) Unsubscribe | Manage Profile | Terms and Conditions


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