Fortnightly wma bulletin 4th may

WMA Bulletin 4th May 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?

Lifetime ISA Following the announcement in the Budget that the Government would launch the Lifetime ISA (LISA) from April 2017 WMA is actively involved in HMRC’s and HM Treasury’s technical working party meetings. Practical implementation issues discussed include the Government bonus, process for releasing funds for house purchase, withdrawals and applying the 5 per cent charge, and whether unmatched contributions be allowed into a LISA. Meetings are set to run until the end of May 2016

MiFID and MAR Implementation Delays affecting WMA firms The European Parliament and Council reached agreement on 2nd May on the MiFID delay legislation. There will be final discussion on technical details but the key new items for WMA member firms are as follows: MiFID II Dates The new MiFID II transposition and application dates will be 3rd July 2017 and 3rd January 2018.

MAR Dates The dates of application of Articles 4(2) and 4(3) of MAR will be delayed to suit the January 2018 implementation date of MiFID II. Prospectus Directive Article 44(3) of the draft Prospectus Regulation now before the European Parliament deals with the fact that the equivalence process in the current Prospectus Directive (for the appropriateness test and the equities trading obligation) will no longer be needed for the Prospectus Regulation but will be moved into MiFID II to operate under that law from January 2018.

What's WMA up to?

WMA Visit to Brussels John Barrass visited Brussels on 19th April and discussed with the Cabinet of Vice-President Katainen (Commissioner Hill’s boss) retail markets, the impact of the digital economy, and the results of the assessment of the cumulative impact of regulation on EU financial services.

There was agreement on the need to build trust across the EU in the retail financial markets as a key element in generating greater consumer participation. We also agreed on the likely role of digital developments in facilitating cross-border activity, and on the need for regulation targeted where it was needed rather than acting as a blunderbuss sweeping all.

European Board Sub Committee Meets The European & International Board Sub-committee met on Monday 25th April to discuss various strategic issues such as the Single Market digital agenda and the operation of the European Supervisory Authorities (ESA's).

MiFID II meeting with FCA FCA held a meeting with trade associations and a number of member firms to discuss Product Governance and Costs and Charges. The meeting was the first time the FCA has been able to discuss the Delegated Acts - they were very much initial meetings and points arising will be fed into our Product Governance and Costs and Charges working parties who are meeting shortly.

Onshore Tax Avoidance HMRC officials have recently met with WMA to discuss their concerns over onshore tax avoidance schemes. HMRC are keen for WMA to publicise the potential dangers of what look like bona fide investment schemes and we plan to publish an article and run an event (which will also cover broader tax-related issues) in 2016.

Financial Advice Market Review (FAMR) WMA recently met with FCA to discuss the recommendations arising from FAMR. We also covered Project Innovate and FSCS. We are currently considering what actions to take in respect of FAMR. The FCA will be covering FAMR at our Compliance Conference on 30th June 2016.

Group Dormant Assets Commission WMA has recently had a discussion with Susan Sternglass Noble from the Dormant Assets Commission. The Commission was launched in December 2015 and Susan is the Lead Commissioner for the Investment Management Industry group, which includes wealth management. The Commission is looking to build on the work in respect of dormant savings and has been tasked with helping to identify dormant assets such as stocks and shares that are more than 15 years old. More information can be found here.

Brexit Information There are now several pages on the WMA website, under the member only EU Policy Support Area covering the process of leaving the EU, what a new relationship between the UK and the EU could look like, the wider consequences of Brexit, post-Brexit financial services regulation, contingency planning, and communicating with clients.

We are open to receiving any further questions firms may have, please email John Barrass with your queries or feedback.

What's coming up in our industry?

Third meeting of the Industry Working Group on Account Transfers and Re-registrations On 12th May 2016 the third meeting of the industry working group looking at account transfers and re-registrations takes place. This follows a request from the FCA to the industry to report back within 6 months following a review of SIPP providers and platforms.

HMRC Common Reporting Standard Working Group WMA is represented on a working group that HMRC has established to look at the “lessons learned” from the implementation of the OECD’s Common Reporting Standard and how that compared with the implementation of FATCA. Areas being covered include implementation deadlines, uncertainty over the application of the rules, and client communication and information-gathering challenges.

What's coming up in WMA? Innovation Hub, Advice Centre and Financial Advice Market Review We have set up an initial meeting with FCA which will be held at the end of the month to discuss the above topics. Our view is that we need to review the FCA's communication and engagement on these issues with our sector.

Insight 360: Blockchain The Missing Link?

26th May

The WMA is excited to host the next Insight 360 event: ‘Blockchain – The Missing Link?’ on 26th May at Willis Towers Watson. This insight 360 event will focus on some of the key questions surrounding Blockchain distributed ledger technology and its potential impact on the financial services sector- view the agenda here. To ensure you do not miss out on this popular event, sign up now!

Insight 360: S.166 This Insight 360 event will focus on a range of issues relating to a S166 Skilled Person Review and/or a Notice of Investigation, you can view the agenda here. Attendees should leave the session equipped to minimise the risk of receiving a S166 and/or Notice of Investigation and an understanding of the issues to be addressed should their firm receive a S166 and/or Notice of Investigation, book your place today.

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.

If you have forgotten, or do not have your WMA log

Website: www.thewma.co.uk

in details, please contact us at

Tel. (+ 44) 20 7448 7100

enquiries@thewma.co.uk.