PIMFA Bulletin 28th November 2017

28th November 2017 PIMFA Bulletin is a fortnightly e-newsletter delivering a snapshot of the latest news and current affairs from within the industry and PIMFA*. *APFA and WMA merged to become PIMFA (the Personal Investment Management & Financial Advice Association) on 1st June.

WHAT IS PIMFA WORKING ON? Recent PIMFA Consultation Responses View the PIMFA Public Affairs responses for October and November 2017 below: •

PIMFA response to CP17.33 Insurance Distribution Directive Implementation part 3

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PIMFA Response to FCA CP17.21 Premium Listing for SCCS

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PIMFA response - EBA consultation on Fintech

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PIMFA response - MAC call for evidence EEA workers

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PIMFA response HoL EU select committee deal or no deal inquiry

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PIMFA response to CP 17 25 - extending the SM&CR to all FCA firms

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PIMFA Response to Work and Pensions Select Committee Inquiry on Pension Freedoms

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PIMFA response to CP17 23 - Insurance Distribution Directive Implementation part 2

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PIMFA consultation to CP 17 29 client money and unbreakable deposits

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PIMFA response HoL Constitution Committee - EU Bill inquiry

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PIMFA Response to ICO Consultation - Controller Processor Contracts Guidance

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PIMFA response to ESMA consultation suitability guidelines

If members would like to give their feedback or input to any consultation papers please email us at enquiries@pimfa.co.uk.

MiFID II - Member Only Information With the MIFID II deadline just round the corner on 3rd January 2018 members are reminded that they can access a wealth of information on the MIFID II section of the PIMFA website which includes: •

MiFID II Project 'Bible'

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PIMFA MiFID II for financial Advisers Guide

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MiFID II / MiFIR Source Material

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Transaction Reporting

*Please note all of this material is for PIMFA members only and therefore password protected.

If you don't have your login details please email us at enquiries@pimfa.co.uk and we will set you up.

Prudential Capital Requirements for Investment Firms With the Commission’s proposal still due to be approved at its weekly meeting on 6th December, the PIMFA has been lobbying key stakeholders on certain aspects of the EBA’s Opinion, which form the basis of the Commission Proposal.

These comments are encapsulated in a PIMFA Briefing Paper, which covers issues relating to K Factors, smoothing, review and Pillar 2, as well as the uneven overall effect on firms. We will continue to keep Members informed as the Proposal makes its way through the EU apparatus.

MSCI WMA Private Investor Index Series – Asset allocation changes from 1st December In response to quarterly surveys submitted by PIMFA member firms regarding the asset allocation to the Conservative, Income, Growth, Balanced and Global Growth portfolios, the Private Investor Indices Committee has made the following changes to the MSCI WMA Private Investor Index Series, effective from Friday 1st December 2017.

Asset allocations in all portfolios remain subject to quarterly reviews by the Private Investor Indices Committee.

Asset allocation changes effective from 1st December are as follows: •

MSCI WMA Private Investor Conservative Portfolio UK Equities down from 19.0% to 17.5% International Equities up from 13.5% to 15.0%

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MSCI WMA Private Investor Income Portfolio - No changes

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MSCI WMA Private Investor Growth Portfolio UK Equities down from 37.5% to 35.0% International Equities up from 40.0% to 42.5%

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MSCI WMA Private Investor Balanced Portfolio UK Equities down from 32.5% to 30.0% International Equities up from 30.0% to 32.5%

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MSCI WMA Private Investor Global Growth Portfolio - No changes

If you would like to contribute to the methodology of this index series and receive exclusive information or find out more please let us know by emailing indices@pimfa.co.uk or call 020 7011 9866.

General Data Protection Regulation (GDPR) With GDPR coming into force on 25th May 2018 members are reminded that the following useful resources are available: •

ICO Preparing for GDPR - 12 Steps to Take Now

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ICO GDPR Guide

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PIMFA GPDR Members Only Website Area

WHAT'S COMING UP IN PIMFA? PIMFA Financial Crime Conference When: 25th January 2018, 09:00 to 18:00 Where: TBC CPD hrs: 4.5 Tickets: £225 + VAT (Members), £450 + VAT (Non Members) As financial criminals gain new techniques and technologies, the threat of financial crime has become undeniable as its landscape evolves. In response, regulators are pushing back by implementing stricter controls.

Book Now

Even with these implemented barriers, the threat of financial crime still remains.

Agenda What can be done to alleviate the risk of financial crime? Join us at the PIMFA 2018 Financial Crime Conference and access leading industry professionals from the regulatory, law enforcement and cyber security space

PIMFA Roadshows When: 4th to 7th December 2017 Where: •

London

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Birmingham

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Bristol

CPD hrs: 3.5 Tickets: Free (Members and Non-Members)

PIMFA Annual Dinner 2018 When: 13th March 2018 Where: Middle Temple, London Tickets: TBC Save the date! The PIMFA Annual Dinner 2018 will be held on Wednesday 13 March 2018 at the prestigious Middle Temple in central London. This event will be a continuation of the APFA Annual Dinner welcoming both former APFA and WMA members. Further details will be announced in the New Year.

WHAT'S HAPPENING IN OUR INDUSTRY? The European Banking Authority to move to Paris The European Union has made a decision regarding the relocation of the two European agencies currently located in the UK: the European Banking Authority (EBA) and the European Medicines Agency (EMA). The EBA and EMA must leave the UK following its withdrawal from the EU.

Representatives from all EU Member States except the UK (“the EU27”) voted on the relocation in the General Affairs Council on Monday 20 November. Eight cities had applied to host the EBA, including Dublin, Paris, Frankfurt and Vienna.

The winning candidate was chosen through three rounds of anonymous voting, with the vote split by a tie between Paris and Dublin; the eventual winner was determined by drawing lots. It was decided that the EBA will relocate to Paris, and the EMA will relocate to Amsterdam. Both agencies will immediately begin preparations for their respective moves and are expected to complete their relocation by the time the UK leaves the EU on 30 March 2019.

Brexit – Article 50 Negotiations The Irish border has emerged as the key barrier to Article 50 negotiations moving onto the future relationship between the UK and EU, as well as the transition period. The Irish Government is looking for a commitment from the UK Government that Northern Ireland will remain inside or as close as possible to the EU Customs Union and Single Market.

According to the Ireland and the EU, the current North-South cooperation arrangement is reliant on a “single island economy” within a common regulatory and legislative approach necessary across 142 identified policy areas.

Prime Minister Leo Varadkar has indicated that he is willing to block the transition to “phase two” of negotiations if his government is not given sufficient assurances that a hard border will be avoided. Lead negotiator Michel Barnier has given his clearest comment yet on the future relationship between the EU and UK, reflecting progress being made in the drafting of negotiation guidelines.

Barnier noted that UK financial services companies will face third country access to the Single Market and excluded a possible carve-out for the industry. He did however express optimism that the EU would recognise certain UK legislation as “equivalent”.

Career development in banking and finance Henry Stewart Publications is a leading publisher of vocational journals in banking and finance. Guided by distinguished Editorial Boards, the journals are widely acknowledged for supporting work related education.

Titles include: •

Journal of Financial Compliance

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Cyber Security: A Peer-Reviewed Journal

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Journal of Securities Operations & Custody

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Journal of Data Protection & Privacy

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Journal of Risk Management in Financial Institutions

PIMFA members receive 20% off all HSP finance journals. Use the discount code PIMFA20OFF when completing the online subscription form.

Latest Industry Events View the latest Industry Events on our website here.

If your firm has an event that you would like to post on this area please let us know here.

Invitation to Fund Trading and Settlement Project Update The Fund Trading and Settlement project (“FTS”) was established in 2016 to review the operations of how £1 trillion of mutual funds are traded and settled, plus how the processing of associated activities such as fund prices

and standing data is handled, with the aim of increasing efficiency, removing costs and reducing risk.

It is an industry-led initiative that has over twenty five of the leading providers including fund managers, platforms, transfer agents plus representatives from the Association of British Insurers (ABI), the Investment Association (IA), PIMFA, TISA and the UK Platform Group.

The project is focusing on the following five areas; order routing, settlement, fund standing data, service level agreements and providing governance for the development, maintenance and adoption of industry standards.

The FTS project would now like to provide an update to the industry covering the progress that has been made and a proposed way forward. This will be held on 7th December 2017 at 2.30pm at Hogan Lovells offices in Holborn, London. The update will include:·

Feedback on the key findings from the FTS surveys

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An update on each of the five working groups’ progress

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How the industry can get involved

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Proposed direction for 2018

If you are interested in attending this event, please contact: linda.lee@tisa.uk.com You are receiving this email because your firm is a member of the Personal Investment Management & Financial Advice Association (PIMFA) , or you have individually requested to join the PIMFA mailing list.

For more information on many of the articles above visit the PIMFA website.

If you have queries you can also contact the relevant PIMFA Staff Member.

If you are unsure of your PIMFA log in details, please contact us at enquiries@pimfa.co.uk.

PIMFA, 22 City Road, Finsbury Square, London ECIY 2AJ www.pimfa.co.uk (+ 44) 20 7448 7100 Preferences | Unsubscribe