PIMFA Fortnightly News Bulletin - 3rd April 2019

PIMFA - Building personal financial futures

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PIMFA Fortnightly News Bulletin - 3rd April 2019 Welcome to the PIMFA Bulletin, our fortnightly e-newsletter delivering a snapshot of the latest news and current affairs from within PIMFA and the industry.

What is PIMFA working on?

New PIMFA Member Firms We are delighted to welcome a new member firm to PIMFA: 

Orbium - Management & Technology Consultancy

We look forward to working with them.

Brexit Update Following a seven hour Cabinet meeting, the Prime Minister has changed her approach and said she wanted to reach across the party divide in order to find a way out of the Brexit impasse. Mrs May said she wanted to open talks with Jeremy Corbyn, the Labour leader, in order to agree a joint plan of action. She explained the talks with the Opposition would focus on the terms of the future relationship between the UK and EU as the Withdrawal Agreement could not be renegotiated. If May and Corbyn manage to reach an

agreement, this would be put to the Parliament for approval before the next EU Council meeting on 10th April. If, however, the talks between May and Corbyn end without an agreement, the Government would put a number of indicative votes to Parliament and abide by the decision the House of Commons adopts regarding the shape of the future UK – EU relations. The Prime Minister said that in order to proceed with this plan, the UK needed a short extension of Article 50 so that the country does not have to hold European elections. She said she wanted legislation implementing any agreement to be complete by 22nd May. May’s offer to seek a solution by working with Labour suggests she is prepared to abandon some of her red lines and accept a ‘softer’ form of Brexit, effectively putting national unity ahead of her party unity. Jeremy Corbyn has accepted the Prime Minister’s offer and said he was happy to take part in the talks confirming he would seek a commitment to a customs union and protections for jobs and standards. It remains to be seen how the Brexiteers in her party will react. Also, the timetable is tight, and it is not clear whether a voting process could be agreed and enacted before the end of the week.

At the last EU Council meeting, the UK was offered a binary choice - if the UK failed to adopt the Withdrawal Agreement, it could either leave on April 12th, or seek a longer delay and hold the European elections. May’s plan falls somewhere in between these two options. It is not clear whether a voting process could be agreed and enacted before the end of the week. In his first reaction to the Prime Minister’s plan, Donald Tusk, the President of the European Council Donald Tusk, tweeted: "Even if, after today, we don’t know what the end result will be, let us be patient."

The PIMFA team continues to follow closely all the developments around Brexit. We will be working hard to ensure that our firms are represented in the ensuing discussions and decisions, and that members are kept informed of outcomes and their implications. Our aim will be to assist firms to make appropriate alterations and develop suitable strategies post-Brexit to help clients plan for their financial futures, while minimising disruption and maximising continuity in the essential services the firms provide.

PIMFA's Central Securities Depositories Regulation (CSDR) Working Group On 2 April, PIMFA held the first meeting of the Central Securities Depositories (CSDR) Working Group.

The key objectives of this group are to explore the CSDR and reach a common understanding of the regulations, which will be shared with PIMFA members.

Any uncertainties will be documented and queries raised with the Bank of England and ESMA.

The group are looking at three CSDR components: 

Euroclear’s application to the Bank of England for authorisation as a CSD and the impact on PIMFA firms;



the new Settlement Discipline regime which will go live on 14 September 2020;



the Internalised Settlement Reporting requirement, under which firms must report settlement internalisation to the Bank of England.

If you are interested in getting involved in the CSDR Working Group, or would like to receive a copy of the papers the group will produce, please contact Kevin Sloane.

British Standards Institution (BSI) inaugural meeting of their International Organisation for Standardisation (IOS) Committee on Sustainable Finance PIMFA attended the invitation only event held by the British Standards Institution (BSI), with support from the City of London, for the inaugural meeting of BSI’s IOS (International Organisation for Standardisation) Committee on Sustainable Finance (ISO/TC/322), which is tasked with the goal of mapping out standardisation in the area of sustainable finance to integrate sustainability considerations and environmental, social and governance (ESG) practices into the investment decision making and wider financial services management process.

The Committee involves international experts and is a unique opportunity for PIMFA to meet with key stakeholders in the Sustainable Finance field and to present our Member’s views on current needs and to identify the future challenges and opportunities in this area.

The meeting discussed the UK perspective on Sustainable Finance and subsequent panel discussion addressed practical experiences and challenges of sustainable finance. Practical experiences include the barriers and opportunities for conducting

sustainable finance - the methodologies, challenges and the success stories and relevant case studies. The discussion focused on gaps and needs that may be addressed by IOS standards set by the financial services industry.

Attendees were updated on the Sustainable Finance Action Plan and the work being conducted on the EU Taxonomy.

The BSI initiative would seek to set out UK standards for addressing the requirements of adjusting the economy into a sustainable low carbon model and engage with other stakeholders to take a holistic view on using IOS standards to reach agreement on international standards and consistency and for the UK to be a leader in the field as has been in other IOS related policy areas, where UK best practice is now followed internationally.

Allocate to China (ATC) Initiative Event Series - Wealth Management and Family Office Investment Maja Erceg, PIMFA Senior Policy Adviser – EU and Government Affairs and Jonathan Reed, PIMFA Strategic Partnerships, participated in the roundtable discussion organised

by Allocate To China Initiative. The ATC roundtable was sponsored and hosted by Simmons and Simmons. It brought senior executives from Chinese banks, trust companies and other wealth management related organizations to London to meet leading players in Europe, for an in-depth discussion on some of the key topics about cross-border investment and collaboration.

China has already developed a huge wealth management market, with an estimated size of HNWIs investment asset at USD17 trillion. This market is still growing very fast with investors increasingly keen on global asset diversification. At the same time, China market continues to open its capital market, make it much easier for global wealth managers to allocate a portion of their clients’ asset to China. Also emerging are increasing opportunities for wealth investors in both China and overseas to collaborate on investment opportunities that can leverage both of their expertise.

If you have any queries regarding this, please click here.

PIMFA Plus Partnership with Beyond Encryption Our new PIMFA+ Joint Venture with Beyond Encryption was announced at our Financial Crime Conference on 19th March 2019.

Beyond Encryption provides secure messaging and digital engagement solutions for Enterprise, SME businesses and their clients. Our solution creates competitive advantage by securing your existing communications, increasing your client engagement and reducing your commercial risk.

Built on our unique ‘Identity Secured Communication’ technology, Mailock® by Beyond Encryption seamlessly integrates with your existing email systems assuring you that your recipient has securely received and opened your message.

Businesses have a duty of care to secure critical information as custodians of their client’s data. Securing client communications and helping protect their data and their identity can unlock ethical and environmental benefits whilst substantially reducing your regulatory risks.

Enhanced compliance, audit and control are key benefits in meeting these regulatory requirements.

To take advantage of the relationship with Beyond Encryption and the special pricing please click here.

Alternatively, for more information about their Identity Secured Communication® solutions, please contact Beyond Encryption either by calling 0208 123 4546 or by emailing to sales@beyondencryption.com.

Wealth of Opportunities Report - Your input is needed!

Some of you will know of and have been involved in previous joint research conducted with the British Bankers Association (BBA), called the Wealth of Opportunities Report.

We are now in the process of creating the new, third version of the report, in cooperation with UK Finance (formerly the BBA). This report is influential in showcasing the Private

Banking and Wealth Management sector to Governments, regulators and other key stakeholders. This year we are also focusing on the sector’s role as a force for good and its philanthropy and other activities. This provides policy makers and the Government with a more complete picture which goes beyond the statistics and any examples you can give describing your Corporate Social Responsibility (CSR) or other philanthropic activity will be enormously helpful.

The survey - available here - only has nine main questions and we would be grateful for your input.

PIMFA Press Releases In order to keep you up to speed with what PIMFA is saying to the media and key stakeholders about important issues that affect our members, our Press Releases are available to read online.

In the last few weeks, we have been talking about the importance of inclusivity in financial services, the Financial Services Compensation Scheme (FSCS) Levy, the retirement outcomes review from the FCA, PII insurance and more.

Read PIMFA press releases here

PIMFA Consultation Responses PIMFA responds on behalf of our membership to numerous key issues within our industry.

We do this via vital feedback and discussion with member firms. From this member feedback PIMFA create responses to consultation documents and discussion papers issued by bodies such as the UK’s regulator, the Financial Conduct Authority (FCA), Government departments and many European and International bodies.

The scope of regulation is increasing and one of PIMFA’s key objectives is to ensure this regulation is proportionate and fair, bringing real benefits to the personal investment management and financial advice community and their clients.

Read PIMFA's Consultation Papers here

What's coming up in PIMFA? Tell Us What Events You Would Like in 2019 To ensure we are providing members with the best events, please help us by filling out our five question survey

1.

Which type of events/subjects would you like to see from PIMFA in 2019?

2.

3.

Which events would you like us to continue for 2019?

Are you interested in attending a PIMFA seminar in your region? If so, please state below the region you are in and content you’d like covered:

4.

If you have recently attended a PIMFA event, please select the most valuable aspects of attending a PIMFA event: •

CPD Hours •

• •

5.

Content Networking

Other (please state)

If you would like to submit general events feedback, please do so below:

We look forward to an exciting year ahead, exploring new initiatives in support of our members and the investment management and financial advice community. .

Complete 5 key questions here

PIMFA Women in Wealth Networking Breakfast 2019 Tuesday 4th June 2019, 08:00 – 10:00 Fidelity International, 25 Cannon St, London, EC4M STA CPD:1 hr Join us on Tuesday 4th June for the second event in the PIMFA Women in Wealth 2019 series for a candid panel discussion and networking opportunities with other professionals within the world of wealth.

This event will provide access to the UK’s top professionals in the investment management and financial advice industry, to meet people who can contribute to your success and be inspired and motivated to drive your career forward.

#WomenInWealth

Sign Up

PIMFA Compliance Conference 2019 18th June 2019, 09:00 - 17:00 Herbert Smith Freehills Offices, Exchange House, Primrose St, L ondon, EC2A 2EG

CPD: 5hrs Keynote Speaker: Debbie Gupta, Director - Life Insurance & Financial Advice, Financial Conduct Authority (FCA) Hear from leading industry experts on the key issues facing compliance professionals in the investment management and financial advice world.

#PIMFAComplianceConf

Book now

What's happening in our industry Financial Conduct Authority (FCA) confirms final Brexit rules for firms The FCA have published their final rules which will apply in the event of a No-Deal Brexit.

Most of the instruments have been made under powers given to the FCA under the EU (Withdrawal) Act and have been approved by the Treasury, so the FCA can now make them final.

Nausicaa Delfas, Executive Director of International at the Financial Conduct Authority said: “These documents are the final stages in our preparations in the event that the UK leaves the EU without an implementation period: they ensure that firms have certainty of the financial regime they will be operating within, and so can plan accordingly to meet the needs of their customers.�

The full FCA Press Release can be viewed here.

The full Brexit Policy Statement and Transitional Directions can be viewed here.

Treasury Select Committee report on Economic Crime On the 8th March, the Treasury Select Committee published a report on anti-money laundering supervision and sanctions implementation.

The Select Committee makes a number of conclusions and recommendations following on from its March 2018 enquiry on the scale of money laundering and sanctions in the UK, the regulatory landscape and how the implementation of these regimes has affected individuals and firms.

You can read the report here.

Joint Money Laundering Steering Group (JMLSG) publishes proposed revisions

On the 19th March, the JMLSG published proposed revisions to Part II of its guidance, relating to Credit Unions (sector 4) and Brokerage Services to funds (sector 20). The deadline for any comments is 18 April 2019.

You can read the proposed guidance here.

Latest Industry Events View all the latest industry events on our website here If your firms has an event which you would like to post on this area, please click here to submit it.

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