PIMFA Fortnightly Bulletin 2nd November 2017

2nd November 2017 Dear PIMFA member 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. *APFA and WMA merged to become PIMFA (the Personal Investment Management & Financial Advice Association) on 1st June.

WHAT IS PIMFA WORKING ON? Pension Freedoms Inquiry PIMFA has published its response to the Work and Pensions Select Committee inquiry into pension freedoms. PIMFA gave evidence on 1st November, highlighting their concerns about pension freedoms and how these can be overcome through regulated financial advice.

Members can also read the accompanying press release here.

New Members We are delighted to welcome two new members to the association. 

David Booler & Co



Finantix

1

European Banking Authority (EBA) Discussion Paper on Approach to Fintech Having attended the EBA hearing on the 'Approach to Fintech' paper on 3rd October, PIMFA has produced a short draft response focusing on those aspects of most interest to investment firms which will be available to members shortly. The consultation closes on 6th November.

Prudential Capital for Investment Firms PIMFA continues to be active in their lobbying efforts, latterly meeting with the European Commission on 19th October. DG FISMA were receptive to most of the comments PIMFA made on the broadly favourable framework produced by the EBA. PIMFA's views are captured in a draft position paper which is being discussed by the Regulatory Committee at its next meeting, and will be shared eventually with stakeholders.

MiFID Template (EMT) PIMFA discussed the European MiFID Template (EMT) for product governance under MiFID II together with the representatives of EU manufacturers. PIMFA is continuing discussions and engagement with manufacturer groups in order to agree data feeds.

Recent Responses to Government and Parliament Inquiries View the PIMFA Public Affairs responses for October 2017 below: 

House of Lords Constitution Committee inquiry – European Union (Withdrawal) Bill



House of Commons Work and Pensions Select Committee inquiry – Pension Freedoms



House of Lords EU Select Committee inquiry – Brexit Deal or No Deal



Migration Advisory Committee - Call for Evidence: EEAWorkers in the UK Labour Market

If members would like to give their feedback or input to any consultation papers please email us at enquiries@pimfa.co.uk.

2

WHAT'S COMING UP IN PIMFA? 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) Group Discount: For discount on group member ticket rate, please click here In just under one week, the PIMFA Annual Summit 2017 will

View the Agenda

commence. This event will provide an excellent opportunity to investigate and gain a comprehensive understanding of the issues that impact upon the wealth management sector and to debate the

Book Now

future of our industry and its role in spurring economic growth.

New opening speaker announced: Wayne Bartlett, who, as Chief Industry Strategist of Microsoft, will bring a refined view of fintech and other latest developments to the day.

PIMFA Roadshows When: 13th November November - 12th December 2017 Where:

View the Agenda

Book Now



Manchester



Liverpool



Isle of Man



Dublin



Belfast



Glasgow



Edinburgh



Newcastle



London



Birmingham



Bristol



Norwich



Jersey

3

CPD hrs: 3.5 Tickets: Free (Members and Non-Members)

WHAT'S HAPPENING IN OUR INDUSTRY? Latest Industry Events View the latest Industry Events on our website here.

If your firm has an event that you would like to post on this area please let us know here.

Guidance on pension transfers The FCA have published their final guidance on the calculation of the redress owed to consumers who were given unsuitable advice to transfer out of a DB scheme.

This guidance applies to any complaint received after 3rd August 2016 over advice given to any consumer to transfer all or part of the value of accrued benefits into a money purchase arrangement. This guidance also applies to a complaint received before 3rd August 2016 but not settled on a full and final basis on or before that date.

National Risk Assessment of Money Laundering and Terrorist Financing HM Treasury have published their national risk assessment of money laundering and terrorist financing for 2017 which can be viewed on their website.

Brexit - October Council Summit The European Council Summit in late October concluded with the EU27 heads of state deciding that “sufficient progress” in Brexit negotiations had not been achieved. Negotiations between the UK and the EU will therefore not move forward to discuss the future relationship and transition arrangements. The EU27 heads of government were careful however to highlight the progress achieved so far to avoid undermining Theresa May’s position.

4

They also gave the green light for Michel Barnier and the Commission to begin the preparation of negotiation guidelines on the future relationship and transition arrangements. These will only begin at the start of next year at the earliest.

The EU27 heads of government were careful however to highlight the progress achieved so far to avoid undermining Theresa May’s position. They also gave the green light for Michel Barnier and the Commission to begin the preparation of negotiation guidelines on the future relationship and transition arrangements. These will begin at the start of next year at the earliest.

European Commission: The Future The European Commission has published its Work Programme for 2018. With European Parliament elections in June 2019, it will be the last such Programme for the Juncker Commission and will conclude its legislative agenda.

It will focus on the completion of key legislative projects: the Capital Markets Union, Banking Union, Digital Single Market and Energy Union. The successful conclusion of the legislative agenda and a new vision for the future of Europe are seen as important for the Commission to gain a strong pro-European mandate in the 2019 election.

FinTech, Money Raising and Banks: Latest European Focus The Commission Work Programme will in particular bring new clarity to the legislative follow-up of the Commission’s FinTech workstream due to be published in Q1 2018. A legislative proposal on a new EU framework for crowdfunding and peer-to-peer finance will also be released then alongside a more general non-legislative initiative on FinTech.

The Commission has also decided to withdraw several policy initiatives, including the long-stalled Bank Structural Reform, in order to complete its Programme in time for the 2019 elections. The cancellation of the structural reform of banks means that, in the EU,only the UK has responded to the financial crisis by separating retail banking from wholesale market operations, in this case under Vickers' Review stimulus.

5

EBA publishes opinion on issues related to the departure of the UK from the EU The European Banking Authority (EBA) has published its opinion on issues related to the UK’s departure from the EU. It follows similar opinions by ESMA and EIOPA and sets outs the banking regulators’ guidance for national competent authorities (NCAs) regarding the regulation of UK-based firms relocating business operations to the continent. While the opinion is not legally binding, the recently proposed ESA Review will seek to provide the European Supervisory Authorities (ESAs) with additional powers to pressure NCAs into following its guidance.

The opinion aims to strengthen the consistent application of the European legal and regulatory framework and prevent a regulatory race to the bottom. According to the EBA it also aims to reduce unnecessary regulatory burdens on firms, and improve cooperation and coordination among NCAs. The opinion sets out in detail what it considers an adequate governance structure of firms' EU-hubs, which are broadly in line with ESMA’s guidance.

These EU27 entities must not operate as an ‘empty shell’, have “appropriate governance and risk management arrangements in place”, and be adequately capitalised. The EBA further notes that the current MiFID/MiFIR equivalence system is sub-optimal for assessing the prudential standards applicable to third country investment firms, as they do not take into consideration the standards set out in CRR. The EBA therefore calls on the Commission to consider this in the upcoming proposal on the new prudential regime for investment firms.

Huntswood's Fraud Risk Management Report: Exploring good practice for better outcomes Fraud is on the rise and the threat is ever-evolving. Mitigating fraud risk is made tougher by developments in technology and operational models. The impact is wider than direct financial losses with reputations harmed, people disenfranchised and market confidence eroded.

Specialist resourcing and consultancy firm Huntswood is exploring approaches to fraud risk management throughout the regulated sector and creating a report to share the insight into good practice that they obtain, considering how: 

firms can gain a clear, accurate and complete understanding of the fraud risks faced



improved fraud risk management can lead to an enhanced customer experience



all opportunities to mitigate fraud risks can be maximised



to understand precisely how effective their controls are in mitigating fraud risks



both fraud loss and any associated costs can be reduced

6

As part of their research, they are conducting a series of one hour interviews with senior fraud managers, taking place to mid-November.

The final report is due to be published early next year. Those participating will receive early release and an opportunity to discuss the content with Huntswood’s Financial Crime and Fraud specialists.

Register your interest to participate here.

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.

PIMFA, 22 City Road, Finsbury Square, London ECIY 2AJ www.pimfa.co.uk (+ 44) 20 7448 7100 Preferences | Unsubscribe

7