Fortnightly bulletin 8th march 2017

WMA Bulletin 8th March 2017 Dear WMA member 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? Dematerialisation Steering Group The Department for Business, Energy & Industrial Strategy (BEIS) hosted a meeting of the Industry Dematerialisation Steering Group on 1st March 2017 to provide an update on their plans for consulting with the market on dematerialisation of share certificates. A note of the meeting is being prepared and details will be disseminated to WMA members in the next WMA Update. In the meantime anyone who would like more information please contact Andy Thompson.

Simplification Review of Residual Paper Stamp Duty on Shares The Office of Tax Simplification (OTS) has published a progress report and call for evidence in respect of Stamp Duty following the Chancellor’s announcement in the Autumn Statement 2016. The OTS review is considering how Stamp Duty could be simplified, including the possibility of its being transformed or replaced to such an extent as to bring the practice of physically stamping instruments to an end. The review does not cover Stamp Duty Reserve Tax (SDRT). WMA plan to meet the OTS but member firms can also send your comments to ots@ots.gsi.gov.uk

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Grants of Probate Fees The Government has recently confirmed that it will be introducing a fee structure for applications for grants of probate (or letters of administration) based on the value of the estate.

Estates up to the value of £50,000 will pay no fee but estates in excess of £50,000 will pay an amount depending on the value of the estate with those above £2 million paying £20,000.

Further details can be found in the Government’s response to its consultation. The Government will bring forward the necessary legislation with the new fee structure set to take effect from May 2017.

Anti-Money Laundering Directive (AMLD4) On 28th February, the Economic and Monetary Affairs (ECON) and Civil Liberties (LIBE) Committees of the European Parliament (EP) agreed the Parliament’s position on amendments to AMLD4. The main takeaway from the position is the ability for the wider public to access beneficial ownership registers in Member States without having to demonstrate a “legitimate interest” as set out by the Council.

The MEPs also agreed that trusts would have to meet the same transparency requirements as firms. On both subjects the Council General Approach largely takes the opposite position, limiting the access to beneficial ownership registers to individuals with a “legitimate interest” and limiting transparency requirements for trusts. The EP's position was adopted with a broad majority (89 votes in favour). The EP plenary will soon grant the official approval to move into trilogues with the Council, which is likely to start in April.

European Parliament’s position on FinTech progresses The ECON Committee discussed Cora van Nieuwenhuizen’s (ALDE, NL) draft report on “FinTech: influence of technology on the future of the financial sector” on 28th February. The report calls on the European Commission to present a FinTech Action Plan that prioritises innovation while ensuring a level playing field between traditional financial services and FinTech services. The report is an own initiative report, and as such it acts as a request for the Commission to act on an issue, rather than to amend a piece of legislation. In terms of policy, the report asks the Commission to focus on cybersecurity and the clarification of liability risks.

The ECON Committee is scheduled to vote on the report in early April followed by plenary in mid-May.

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WHAT'S WMA WORKING ON? Legal Entity Identifiers On 28th February 2017 WMA published a Guide to Legal Entity Identifiers (LEIs) for use by WMA member firms when liaising with their legal entity clients about obtaining an LEI (where the Legal Entity is required to do so) from 3rd January 2018.

Read a copy of the guide here.

MSCI WMA Private Investor Index Series now live On the 1st March 2017, the new MSCI WMA Private Investor Index Series, were launched. The series are a key benchmark for UK private client portfolio performance widely used by investment managers and financial advisers, includes a suite comprising of five indices: conservative, balanced, income, growth and global growth.

Tim West, Investment Director from Rathbone Investment Management and Chairman of the WMA Indices Committee commented: "The indices committee has worked hard to enhance the series of indices and has been pleased with MSCI's contribution, their willingness to engage and their responsiveness to our concerns."

Steve Kowal, Executive Director at MSCI will be providing an update on the index series at the WMA Investment Conference 2017, taking place in April.

Find out more about the indices with our brochure Or or more information about the indices or the MSCI data module please contact MSCI at: WMA@msci.com, or visit:

Read the full press release here.

www.msci.com/wma.

Dormant Assets Commission On 3rd March 2017 the Dormant Assets Commission (DAC) published its final report to Government recommending that the current dormant accounts scheme (covering bank and building society accounts) should be expanded to include a range of other asset types. WMA was involved in the investment management working group during 2016.

A copy of the DAC’s report can be accessed here.

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Pensions Dashboard On 27th February 2017 WMA attended a Pensions Dashboard event hosted by the Association of British Insurers (ABI) at which the Treasury outlined high level requirements for the governance of the Dashboard and the ABI updated on the prototype project. Anyone interested in more information, including a copy of the presentation slides, please contact Andy Thompson.

Global Cyber Alliance (GCA) The GCA is looking for organisations to participate in a project that enables participants to block malicious domains from accessing their IT systems. GCA was established a little over a year ago as a joint initiative of the Centre for Internet Security (US), the City of London Police and the District Attorney of Manhattan. It is a not for profit organisation funded by US proceeds of crime funds and other in-kind and financial contributions.

The GCA’s prime objective is to reduce cyber risk by working in partnership with business and government on practical, proven interventions that reduce systemic cyber risk. It is a project based organisation, working collaboratively with a large range of organisations globally. The current partner base is up to 140 organisations and WMA has recently joined as a partner.

What is the Internet Immune System project?

GCA, along with a partner organisation, Packet Clearing House, has built an infrastructure that collects, analyses and blocks malicious domains, using multiple threat intelligence feeds (public and private). This Domain Name Server (DNS) infrastructure is privacy preserving and does not store the source IP information of the systems making the domain resolution requests.

Participation is free so if you are a small to medium sized enterprise, have some in-house IT capability and are interested, please contact Giulia Lupato.

MiFID Working Group - Product Governance WMA have set up a new MiFID working group on product governance looking at the issue from the point of view of manufacturers. If you are interested in joining please contact Giulia Lupato.

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WHAT'S COMING UP IN OUR INDUSTRY? Individual Savings Accounts: Estates in Administration HMRC has published draft legislation to amend the ISA Regulations to allow the savings of a deceased person in an ISA to continue to benefit from tax advantages during the administration of the estate. The consultation is open until 7th April 2017 and can be accessed at www.gov.uk.

Weston Hill Global Private Wealth Forum This international forum will bring together 200+ executives representing Family Offices, UHNWI, and Asset Managers from the UK, Europe, the Middle East, and the Americas to discuss wealth preservation, governance and risk-management in an uncertain environment.

The gathering, an excellent networking opportunity, will see leading industry players will provide strategic insight through several panels and presentations.

March 9th - 10th 2017 St. Ermin’s Hotel Westminster

For more information, call +1 (212) 213-9525 or email

Register here today

registration@globalprivatewealth.org.

Scotsman Conference: Investment in a Post-Brexit World 28th March 2017 08:00 – 10:30, Hilton Edinburgh Grosvenor £40 + VAT (WMA Members will receive a 20% discount please quote INVEST20) For more information: email conferences@scotsman.com or call 0131 311 7233.

As details about Brexit emerge and Trump's presidency develop, investors remain nervous about strategy: UK equities appear expensive, interest rates look to be on the way up, and the market is due a correction after such a strong rise.

There are many questions: - Have we seen the last hurrah for defensive investments and income funds?

- Are emerging markets due a further rally?

- Are there particular sectors- infrastructure, biotech, IT– that investors should be looking at?

- Should we rule out continental European equities, and what about cash?

Expert speakers will cut through the political and economic noise and give their view on where the markets are going and the safest havens for your money. View the agenda here.

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WHAT'S COMING UP IN WMA? WMA Associate Member Briefing & Reception 13th March Exclusively designed for WMA Associate Members, this event will provide an opportunity to learn about the issues currently impacting on the UK Wealth Management community.

Book Here

CPD Seminars: Discussing the MSCI WMA Private Investor Indices MSCI will provide an update on the new MSCI WMA Private Investor Index Series. They will discuss the underlying components of the indices, provide an update on the recent enhancements and answer any questions from member firms.

Book your place at the events held across the UK below: 

London – 20.03.2017

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Manchester – 23.03.2017

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Edinburgh – 25.04.2017

Women in Wealth Series 9th March The WMA ‘Women in Wealth’ series of events will gather women from across the industry for peer-to-peer networking and inspiration.

The events are designed to provide a platform for candid discussion and access to the UK's top wealth management professionals. Keynote speaker for this event is Helen Watson, CEO of Rothschild Private Bank.

Book Here

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