Fortnightly bulletin 6 september 2016

WMA Bulletin 6th September 2016 WMA Bulletin is a fortnightly snapshot delivering the latest news and current affairs from within the wealth management industry and WMA.

What's going on in our industry?

HMRC International Exchange of Information Charities Guidance On 25th August HMRC published some detailed guidance on the status of charities under the international exchange of information regimes with a particular focus on the Common Reporting Standard. The guidance includes examples of where a charity would be classified as a Financial Institution under the CRS.

HMRC Consultations HMRC has recently issued a number of discussion and consultation papers that are of interest to WMA member firms and their clients as follows: - Strengthening tax avoidance sanctions and deterrents; - Tackling offshore tax evasion: a requirement to collect; - Making tax digital, bringing tax into the digital age.

A summary note of these consultations will be provided in the next WMA Update but anyone interested can access the documents here.

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What is WMA up to?

MSCI Announcement On 1st September WMA announced an agreement with MSCI to provide the Private Investor Index Series.

MSCI will offer the wealth management community a series of flexible multi-asset class indices that will be augmented and enhanced over time based on the changing needs of the private client sector.

This new agreement will ensure the delivery of a suite comprising of five indices: conservative, balanced, income, growth and global growth. With agreement from the WMA Board the use of the new index series will begin on 1st March 2017.

Maintaining the transparency of the Private Investor Index Series will remain a priority for both sides and the data collection for the indices from within the WMA membership will remain in WMA hands and continue to be 100% confidential and reported anonymously.

Read the press release here.

Moving forward, we will continue to work with FTSE, not withstanding our members utilise their data, and early positive indications show they want to actively work with WMA. A meeting with WMA's CEO and FTSE will take place shortly.

Brexit

We will shortly be finalising our ‘asks’ from the Brexit negotiations, which will feed into TheCityUK, who are coordinating a single document to go to HMT. We have had a second meeting with the FCA on a post Brexit environment and technical and industry know-how we provide them in the intervening period. We have also met with HMT to position wealth management as a discrete sector in its own right and at their request will provide them with information on the sector.

Thank you to the firms, who provided us with the necessary company and client’s numbers for the WMA paper.

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PRIIPs The European Parliament ECON has voted against the performance appraisal and multi option product elements of the Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulatory Technical Standards. It is back to the drawing board on these items.

Meanwhile WMA has raised the confusion about cost disclosure arrangements directly at a meeting with EIOPA. It is not clear how these complaints will be handled. At present there has been no announcement by the European Commission that they will delay implementation, but WMA will be watching this situation and keep members informed.

Lifetime ISA (LISA) On 1st September WMA attended a trade association meeting hosted by HM Treasury and HMRC in which they provided an update on Government plans for the Lifetime ISA (LISA). The plan remains to launch the LISA in April 2017 although officials recognise that the timeframe is extremely tight. A consultation paper and draft regulations are expected soon.

Cross-industry Transfers and Re-registration Industry Working Group WMA attended the latest meeting of the crossindustry transfers and re-registration working group. This was established in March 2016 at the request of the FCA and has been flagged in the previous WMA Bulletin.

The plan is to publish an industry consultation in October and whilst WMA has concerns about some of the proposals relating to governance, we are fully engaged in the process and will alert members as and when the consultation is published.

FCA Meeting on Client Reporting WMA met with FCA to discuss reporting to clients under MIFID II this week.

WMA Operations Committee On 1st September the WMA Operations Committee discussed the General Data Protection Regulation and agreed that a more comprehensive summary would be useful for members. The Committee also had an initial discussion about Euroclear’s consultation paper proposing changes to the processing of dividends with options (flagged in the last WMA Bulletin) and received an update on the work of the industry sub-group that is working on proposals in respect of asset transfers and re-registrations.

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What's coming up in our industry?

UK Fund Trading Settlement Initiative Open Forum On 16th September an update will be given on the progress of the UK Fund Trading and Settlement (FTS) initiative (highlighted in previous WMA Bulletins). This will take place between 9 am-12 pm at Fidelity, 25 Cannon Street, London EC4M 5TA. Spaces are limited to a 'first come, first served' basis, one delegate per member firm.

The UK FTS was launched in April 2016 to review the way mutual funds are traded and settled as well as supporting services. WMA are one of 5 trade associations involved in the initiative. This forum will enable attendees to participate in an open discussion and hear feedback on the key themes and findings from the Request for Information process. Please email Linda Lee at linda.lee@tisa.uk.com if you would like to attend the event.

HMRC Automatic Exchange of Information “Town Hall” Event On 7th October HMRC will be running an educational event in London aimed at businesses and advisers in the small and medium sectors who are affected by automatic exchange of information (FATCA, Common Reporting Standard). The event will include speakers from advisers, industry (including WMA), and HMRC and provide one-to-one “surgeries” plus small group discussions on due diligence best practice.

You can register your interest via email to crs.consultation@hmrc.gsi.gov.uk.

HM Treasury Pensions Dashboard presentation On 12th September Simon Kirby, Economic Secretary to the Treasury, will set out the Government’s vision for the Pensions Dashboard project, including how the Government will help the industry make the Dashboard a reality and the immediate next steps. This is the event that was postponed in July following the Government reshuffle.

The event will take place at Aviva Digital Garage, 33-35 Hoxton Square, London N1 6NN and anyone interested in attending should contact Roisin Watson at roisin.watson@aviva.com. WMA staff will attend and report back to members.

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What's coming up in WMA?

Bank of England Settlement Discipline Regime Working Group On 16th September 2016 WMA will be attending the 3rd meeting of the Settlement Discipline Regime Working Group which is chaired by the Bank of England. This is very important in trying to ensure the most practical and workable implementation of the settlement discipline regime under the CSD Regulation in 2018.

WMA Briefings September to December 2016 WMA Briefings provide member firms with information on current and upcoming UK and EU Regulatory, Business and Operational issues that the WMA are currently working on for the community. They are also a great opportunity for firms to discuss with WMA any issues affecting them.

These events are free to members and entitle attendees to 1.5 CPD hours. To book your place on any WMA Briefing, click on the relevant city below or click here for a list of all WMA events.

Belfast – Birmingham - Bristol – Dublin – Edinburgh – Glasgow – Isle of Man – Jersey – Leeds - Liverpool – London – Manchester – Newcastle - Norwich

WMA Women in Wealth Forum 6th October 2016 (9:00 to 14:00) RBS, 250 Bishopsgate, London EC2M 4AA

The final WMA ‘Women in Wealth’ event for 2016 will bring together women from across the industry for peer-to-peer networking and inspiration.

The event will provide practical hints and tips for delegates to take away. It also provides a platform for candid discussion and access to the UK's top wealth management professionals. Speakers will include women from within the industry and those external to it - including Lady Barbara Judge, CBE, Chairwoman of the IoD. View the agenda here.

Book now to ensure that you don’t miss out.

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WMA Annual Summit The WMA Annual Summit 2016 is a unique opportunity to investigate and gain a comprehensive understanding of the key issues impacting the wealth management sector.

With over 450 delegates from across the community and high calibre speakers such as Sir Ranulph Fiennes Bt OBE (who will be closing the event) - the annual summit is not to be missed.

Book your place today for over 4 hours of dedicated networking time and 6 hours of CPD.

For more information on many of the articles above visit the WMA Members Area of our website.

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

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