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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 managerâ&#x20AC;&#x2122;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.
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