Fortnightly bulletin 18th may 2017

WMA Bulletin 18th May 2017

WMA Bulletin is a fortnightly snapshot delivering the latest news and current affairs from within the wealth management industry and WMA.

WHAT'S HAPPENING IN OUR INDUSTRY? FCA ScamSmart Campaign Pension freedoms and low interest rates are making the over 55’s an increasingly rewarding target for fraudsters. For victims, the emotional distress of being scammed can compound the financial loss.

Help stop your clients falling victim to investment scams support the FCA ScamSmart campaign and spread the word to your clients.

The ScamSmart campaign aims to drive up consumer awareness of investment scams and the common tactics that fraudsters use. It stresses the importance of rejecting unsolicited investment offers, getting impartial advice and checking the FCA Warning List before making an investment.

The FCA has a range of assets you can use, including leaflets, editorial and videos. For more information on how to help your clients become ScamSmart investors visit www.fca.org.uk/scamsmart or email atinuke.akintola@fca.org.uk

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Brexit – Technical Concerns and Political Decisions The influence of business concerns on the politics of Brexit is often unclear. Some glimmerings may come from the controversy over euro-denominated clearing. Loud political noises have been made about how this must be shifted from London to the Eurozone. But considered technical points about the risk, cost, and feasibility of this are growing in potential political impact.

Financial regulators including ESMA Chair Steven Maijoor and US Commodity Futures Trading Commission (CFTC) Chair Christopher Giancarlo both focused at the ISDA annual conference in Portugal on enhancing the ESAs’ powers to supervise relevant risks in third country clearing houses, rather than moving the operations themselves. Giancarlo and German BaFin President Felix Hufeld warned that forced relocation of euro clearing to the Eurozone might have unintended consequences for the EU financial sector and compel US protective action. These authoritative and serious statements may provide a litmus test of the willingness of European politicians to allow technical arguments to prevail over political desires in the Article 50 negotiations.

Brexit – ESMA warns of ‘regulatory race to the bottom’ ESMA Chair Steven Maijoor, has warned against a regulatory race to the bottom by European national supervisory authorities in the competition to attract the UK’s Brexited financial services firms. These concerns were echoed by Jacques de Larosiere, the architect of the European supervisory framework, as well as by senior officials from the European Central Bank.

To create greater clarity, ESMA is developing principles for outsourcing and delegation for firms moving into other EU states and will publish in the summer opinions on the issues, including in asset management where firms are already authorised in another Member State but delegate valuable functions – such as fund management – to the UK. The objective is to promote a more coordinated approach across member states, but it could also significantly tighten the régime for firms relocating to the EU27.

Brexit – Emmanuel Macron and the French Presidency Emmanuel Macron was sworn in as President of France on 14th May after winning the presidential race against Marine Le Pen with an explicitly pro-European campaign. He has stressed the need for a close Franco-German alliance to drive forward reform of the EU and has promised to be ‘tough’ in negotiations with the UK but not to seek punishment for leaving.

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Generally considered a pragmatic character, his Presidency will likely facilitate Article 50 negotiations as he will make it easier for the EU to come to a unified position. Although Brexit has not been a key priority for Macron during the campaign, he is likely to develop his position as the Presidency work begins over the coming weeks. Upcoming National Assembly elections in June will determine his ability to govern, as he seeks a Parliamentary majority based on his En Marche! political movement created only a year ago.

Apprenticeship Levy The Apprenticeship levy is a new way of funding apprenticeships. Its purpose is to encourage employers to invest in apprenticeship programmes and to raise additional funds to improve the quality and quantity of apprenticeships.

The Apprenticeships Levy paid by businesses can be accessed by those same businesses to fund apprenticeship training in their business.

Find out more by reading our guide.

WHAT'S WMA WORKING ON? WMA Operations Committee On 4th May 2017, the Operations Committee discussed outstanding issues relating to transaction reporting and in particular possible alternatives to having to provide a copy of the trust deed when applying for LEIs on behalf of Trust clients. The Committee also flagged the importance of responding to the Fund Settlement Survey which has been issued as part of the settlement workstream under the Industry Fund Trading & Settlement initiative.

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WMA Retail Markets Committee On 9th May 2017, the Retail Markets Committee discussed a first draft of a WMA Q&A in respect of Article 38(5) of the CSD Regulation which requires CSD Participants to offer the choice between segregated and omnibus accounts. This has also been shared with the Operations Committee and will be forwarded to FCA and, if necessary, to ESMA for comment.

Also discussed by the Committee was FCA Consultation Paper 17/5 relating to reforming the availability of information in the UK equity IPO process and it was agreed that the WMA response should flag some of the “retail issues” when responding to FCA by the deadline of 1st June 2017.

FinTech Conference Competition The WMA is pleased to announce the second WMA FinTech Conference to be held on 6th September 2017 in conjunction with the London Stock Exchange (LSE).

Our FinTech Conference is a one-day event which will provide attendees with a platform to discuss the advantages and potential risks of bringing technology and the Wealth Management industry closer together.

We are once again holding an open competition for firms to

View the brief here

demonstrate their ‘Future Fintech Solutions’. For more information and to apply, please visit the website.

View terms & conditions here

To enter the competition, please click here

EGM - Proposed merger with APFA and change of name 31st May 2017

When: 31st May 2017, 13:00 to 14:00

Where: 22 City Road, Finsbury Square, London EC1Y 2AJ Tickets: £0, Members Only The WMA Board and the Association of Professional Financial Advisers (APFA) Council are recommending to merge our industry associations. The proposed merger is driven by the belief that we can offer our membership valueadded synergies, leveraging the existing resources of both associations to establish a stronger voice and drive thought leadership in our industry.

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Those attending the EGM will vote on two resolutions and for

Please note this is a

any members unable to attend please contact

member only event.

celesteh@thewma.co.uk to obtain and return a proxy form, reply form or appointment of representative form.

WHAT'S COMING UP IN WMA? WMA Women in Wealth Networking Breakfast 6th June 2017 When: 6th June 2017, 08:30 to 10:30 Where: RBS, 250 Bishopsgate, London EC2M 4AA CPD hrs: 1.5 Tickets: Free to WMA members only This breakfast event in the Women in Wealth series will focus on the 'Business Benefits of Diversity' and will provide attendees with a forum to explore new ways to encourage diversity in the workplace.

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We warmly welcome both men and women to these events and would encourage female attendees to bring a male colleague along.

WMA Jersey Briefing June 2017 When: 13th June 2017, 15:30 - 17:00 Where: Canaccord Genuity WM, PO Box 3, 37 The Esplanade, St Helier, Jersey JE4 0XQ CPD hrs: 1.5 Tickets: Free to WMA members only WMA Briefings are a series of country-wide events designed to keep members updated on Regulatory, Business and Operational issues in the UK and EU affecting the industry.

View the agenda here.

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These free 1.5 hour CPD events are also an opportunity for firms to discuss market issues and network with peers.

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WMA Compliance Conference 29th June 2017 When: 29th June 2017, 09:00 to 16:30 Where: Herbert Smith Freehills, London CPD hrs: 4.5 Tickets: ÂŁ225 +VAT (Members), ÂŁ450 +VAT (Non Members)

This full day conference will bring together a high-level audience to engage with the leading industry experts and discuss key issues shaping the compliance in the investment management and financial advice world.

Speakers will include FCA and FOS and delegates will hear updates on MiFID II, PRIIPs, SMR and other hot topics.

View the full agenda here.

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