Fortnightly bulletin 7th june 2017

7th June 2017 PIMFA Bulletin is a fortnightly e-newsletter delivering a snapshot of the latest news and current affairs from within the industry and PIMFA. Download the PDF version here.

WHAT'S HAPPENING IN OUR INDUSTRY? FCA: Assessing Suitability Review On the 18th May, the FCA published its Assessing Suitability Review, designed to assess a sample of advice files in order to draw conclusions on the suitability of advice and quality of disclosure in the financial advice sector. The findings have been positive overall with 91.3% of cases providing suitable advice.

However, the FCA found issues on disclosure where it was deemed unacceptable in 41.7% of cases. The FCA will begin a communications programme in the course of 2017-2018 where it will provide examples of good and poor practice. The Review will be repeated in 2019.

Review of European Supervisory Authorities The European Commission is examining the operation, structure and funding of the European Supervisory Authorities (ESAs) and consulting with stakeholders as part of this. Our Consultation Response recommended a transition to a “twin peaks� model of supervision along the lines of that in the UK and for a reform of the ESAs financing.

1

In the PIMFA view, ESMA should become the conduct authority (similiar to FCA) and a combination of the EBA and EIOPA with the Single Supervisory Mechanism (SSM) for the Eurozone should be the prudential supervisor (similiar to PRA). This would centre the EU mechanisms on Paris and Frankfurt post-Brexit, mirroring the UK’s system in London. Having clearly delineated responsibilities separated along functional rather than institutional lines, funded independently of the Commission and member states, would help impartiality and efficiency at the European level.

You can also read our latest column on this in Fund Strategy.

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 www.pimfa.co.uk/managing-your-money/investmentfraud/. Alternatively you can email atinuke.akintola@fca.org.uk

EU Report on FinTech The European Parliament adopted an own-initiative report on FinTech on 17th May. This is non-binding and calls on the European Commission to develop an Action Plan for the removal of barriers to Fintech development in the EU. It also highlighted the importance of effective cybersecurity, financial stability and consumer protection. The Commission is gathering views to determine what, if any, regulatory action might be necessary.

It set up a working group for this purpose last year and is currently running a public consultation to which PIMFA will respond. Work is also being conducted at a global level, where the Financial Stability Board has reported on the risks surrounding the use of FinTech in credit provision.

2

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

If you do not pay the levy because you are under the threshold, you can still access the apprenticeship programme to help pay the training costs for a young apprentice in your firm.

Find out more by reading our guide.

FinTech Week returns for the 4th year Fintech Week London is a series of conferences, exhibitions, workshops, hackathons and meetups.

Expect 600-1,000 delegates per day from over 50 countries and 3,000 – 5,000 participants throughout the week.

FinTech Week's aim is to unite the world of Fintech in the world’s financial capital to enhance the dialog between established multinationals, innovation firms, disruptive start-ups, governments and PIMFA Members Discount:

investors.

Enter PIMFA30 to get 30% off Find out more at: www.fintechweek.com

WHAT IS PIMFA WORKING ON? APFA & WMA Merge to become PIMFA on 1st June As members will be aware, APFA and WMA recently merged to create the Personal Investment Management & Financial Advice Association (PIMFA) to speak with a stronger voice for our industry.

You can read the read the full press release here.

3

PIMFA is the voice of a variety of member firms - both large and small- that provide financial solutions, investment management and advice to individuals and families across different financial income and investment bands, helping them plan for a resilient financial future.

By speaking with one stronger voice, PIMFA will continue to lead the debate on policy and regulatory recommendations to ensure that good businesses can thrive and that the UK remains a global centre of excellence in the investment management and financial advice arena.

Visit the PIMFA website to find out more.

Welcome to our new members We are delighted to welcome 3 new members to PIMFA: 

Quibus Consulting Ltd



Casterbridge Wealth Ltd



Farrer & Co

Financial Adviser Market: In Numbers – Version 5.0 Last week we published the fifth annual report on the shape, size and trends in the UK financial adviser market in 2016.

Previous reports have been used to support lobbying work on financial advice issues with policymakers, and have also been quoted in key government reviews.

Our report found that revenues for advisers continued to increase in 2016 but pre-tax profits were down by 6.7%. You can find the full details of the report here.

PIMFA Operations Committee On 1st June 2017, the Operations Committee discussed relevant aspects of the CSD Regulation (CSDR) with a representative from Euroclear. Discussion focused particularly on the requirement under Article 38(5) of the CSDR for CSD Participants to offer clients the choice of segregated or omnibus accounts.

This requirement must be in place at the time that the relevant CSD gains authorisation from its Competent 4

Authority. Whilst the precise date is as yet unknown it is expected to be sometime during the summer of 2018. A PIMFA Q&A document on Article 38(5) will be issued for members in the next few weeks.

Private Investor Indices The recent name change from WMA to PIMFA will have no immediate impact on the MSCI WMA Private Investor Index Series.

PIMFA recognises that firms using the Index Series will have recently informed their clients of the switch over to data provider MSCI, and feel that a further change within such quick succession would not be in the best interest of member firms or their clients.

We will work with MSCI and consult with member firms on an appropriate time frame for any future changes to the index series and will communicate these in due course to ensure a smooth transition.

Transaction Reporting Presentation to LSE Ian Cornwall, PIMFA Director UK Regulation recently presented at the London Stock Exchange (LSE) on transaction reporting.

View the webinar here.

Transaction Reporting Guidelines On 22nd May 2017 PIMFA sent to FCA a first draft of our Supplement to ESMA’s Transaction Reporting Guidelines with a number of outstanding queries.

On 25th May FCA requested PIMFA (along with other financial services trade bodies) to gather information regarding member firms’ readiness in respect of their transaction reporting obligations prior to 3rd January 2018. PIMFA subsequently issued a survey to all main compliance contacts requesting feedback on a number of questions by 8th June 2017.

5

Meeting with FCA on MIFID II Post trade transparency We have had an initial meeting attended by PIMFA staff and a number of member firms about post trade transparency.

The meeting was helpful and we will be considering our next steps once we receive confirmation on certain issues from the FCA.

Transaction Reporting VAT and SIPPs PIMFA has been discussing with a few member firms some issues relating to VAT and SIPPs, including inconsistency between different parts of HMRC Guidance, inconsistent application of existing guidance, unlevel playing field of VAT treatment between insured and non-insured SIPPs and the need for clearer disclosure of what is and what is not an insured-based SIPP. We have set up a meeting with member firms and HMRC for 20th June 2017. Anyone interested in attending or wanting further information on the issues please contact Andy Thompson.

WHAT'S COMING UP IN PIMFA? PIMFA Summer Party When: 21st June 2017, 18:30 - 22:00 Where: Sea Containers, Offices of Ogilvy & Mather, 18 Upper Ground, London SE1 9RQ Tickets: Free to PIMFA members only Come celebrate the start of summer with us at London's most exclusive new venue & rooftop terrace: Sea Containers, London.

This annual event is always extremely popular and not to be

Book Now

missed, so to save the date, RSVP now and secure your place!

6

PIMFA Compliance Conference When: 29th June 2017, 09:00 to 16:30 Where: Herbert Smith Freehills, London CPD hrs: 4.5 Tickets: £225 +VAT (Members), £450 +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

Book Now

updates on MiFID II, PRIIPs, SMR and other hot topics.

View the full agenda here.

PIMFA Annual Summit When: 8th November 2017, 09:00 - 20:00 Where: The Grange Hotel Tower Bridge, 45 Prescot Street, London E1 8GP CPD hrs: 6 Tickets: £349 +VAT (Members), £699 +VAT (Non Members) Keynote speaker announced: Lord Michael Dobbs Lord Michael Dobbs is best known as the best-selling author of House of Cards which has been successfully adapted for TV in

Book Now

both the UK and US; the latter still running on Netflix, featuring Kevin Spacey.

To find out more or book now to reserve your place.

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.

7