PIMFA Fortnightly News Bulletin - 14th November 2018

PIMFA Fortnightly News Bulletin - 14th November 2018 Welcome to the PIMFA Bulletin, our fortnightly e-newsletter delivering a snapshot of the latest news and current affairs from within PIMFA and the industry.

What is PIMFA working on?

New PIMFA Member Firms We are delighted to welcome two more new members to PIMFA and look forward to working with them.

Integrating Systems Ltd – Office technology outsourcing New Model Business Academy (NMBA) – Professional training and development provider

Urgent - PIMFA Risk Survey For dedicated Risk or Compliance Officers only: Following our past Risk Surveys, PIMFA are widening the remit of the research so that we can engage with as many company officers as possible with risk responsibilities - and we need your help.

As all firms look at risk slightly differently, we are keen to learn what the specific concerns are for Risk and Compliance officers, both now and for the future, so that we may be in a better position to help.

As an illustration, and to help give an idea of what's gone before, the previous survey is available here.

The current survey can be found here.

For further guidance or if you have any questions, please contact Gary Sunderland.

Financial Ombudsman Service (FOS) wins Judicial Review case against Berkeley Burke SIPP operators, especially, will have closely followed the legal case taken by Berkeley Burke against the Financial Ombudsman Service following its decision in favour of a consumer who was referred to Berkeley Burke by an unregulated introducer and who then transferred their existing pension and made an execution-only investment into a UCIS, which the FOS concluded was unsuitable.

The ruling sets out that the existing FCA rules in place at the time of the advice did set an expectation on a SIPP to have carried out a proper degree of due diligence on the suitability of the investment it allowed to be held within its SIPP. Berkeley Burke has indicated it will seek to appeal this latest court finding and given the wider consequences for firms and investors, the final outcome of the legal process will be of interest not just to the SIPP market and investors in particular, but the wider financial services industry too.

To view the Court Decision in full, please click here.

Any members with queries or questions on this issue, please contact Des FitzGerald.

Financial Conduct Authority Defined Benefit Questionnaire As you are no doubt aware, the issue of defined benefit transfers remains a priority for the regulator and the FCA have now issued a Defined Benefit (DB) questionnaire to financial advisers in Scotland as the first stage of their information gathering process. This questionnaire will be rolled out to the rest of the country in due course.

For your information, please find below a copy of the questions issued to the advisers in Scotland. Although these questions may not be the same when subsequent questionnaires are issued, it does give Members an indication of the type of information you will be required to provide to the FCA and may help in your forward planning.

FCA DB Questions

•

The number of clients the firm recommended to transfer?

• The number of clients the firm recommended not to transfer?

• The number of clients the firm allowed to proceed as insistent clients?

• The number of clients who discussed a pension transfer with the firm but did not proceed to receiving full advice e.g. that did not proceed to full advice through the firm’s triage process?

• The average transfer value the firm advised on?

• The percentage of the firm’s total income that results from providing pension transfer advice?

• The number of clients who transferred but did not engage with the firm for ongoing advice?

• The number of Pension Transfer Specialists at the firm?

• The number of clients who invested in a solution more expensive than a stakeholder product?

• Has the firm advised clients on pension transfers from schemes with safeguarded benefits, other than defined benefit schemes, between 1 April 2015 and 30 September 2018?

FCA asked firms to split out the above responses in the following date ranges: • 1 April 2015 – 30 September 2015 • 1 October 2015 – 30 September 2016 • 1 October 2016 – 30 September 2017 • 1 October 2017 – 30 September 2018 If you have any queries or questions, please contact Des FitzGerald.

PIMFA Press Releases In order to keep you up to speed with what PIMFA is saying to the media and key stakeholders about important issues that affect our members, you can see our latest Press Releases here.

• • • • •

Brexit and the future economy debated at PIMFA Annual Summit PIMFA Annual Summit debates the New Investment Horizon PIMFA responds to Andrew Bailey Mansion House speech PIMFA raises concerns over proposed extension of FOS award limit PIMFA says that PRIIPs Regulation is in urgent need of review

PIMFA Consultation Responses PIMFA responds on behalf of our membership to numerous key issues within our industry.

We do this via vital feedback and discussion with member firms. From this member feedback PIMFA create responses to consultation documents and discussion papersissued by bodies such as the UK’s regulator, the Financial Conduct Authority (FCA), Government departments and many European and International bodies.

The scope of regulation is increasing and one of PIMFA’s key objectives is to ensure this regulation is proportionate and fair, bringing real benefits to the investment management and financial advice community and their clients.

Read PIMFA's Consultation Papers Here

What's coming up in PIMFA? PIMFA CPD Seminar: How to Improve your MiFID II Reporting Thursday 15th November 2018, 8:00 - 10:00 PIMFA Offices, 22 City Road, Finsbury Square London CPD:1hr Following MiFID II roll-out earlier this year, the regulator is now turning its focus to the quality of data being reported.

Join David Nowell, Senior Regulatory Reporting Specialist at Kaizen Reporting, as he explores: • The most common transaction reporting errors identified by the FCA and Kaizen • How to resolve them • Best practice for good quality reporting • Q&A David is a former regulator with more than 30 years’ financial services experience on both sides of the regulatory fence. He was previously Head of Compliance at the London Stock Exchange’s UnaVista, and has also worked at the FSA, Credit Suisse and Reuters.

Book now

PIMFA Women in Wealth Forum 2018 Wednesday 5th December 2018, 08:30 – 14:00 RBS, 11th Floor, 280 Bishopsgate, London, EC2M 4RB CPD: 3 hrs Free to members Join us for our final PIMFA ‘Women in Wealth’ event of 2018, bringing together colleagues from across the industry for peer-to-peer debate, networking and inspiration.

Speakers will include top female professionals from our industry and its key stakeholders to share insights and experience, as well as a practical element of takeaways suitable for men and women on individuality within your organisation.

Speakers: • • • •

Liz Field, Chief Executive, PIMFA Irene Coyle, Managing Director of Training, OSP Cyber Academy Joanna Gaudoin, Managing Director, Inside Out Image Caroline Holt, Managing Director, Attitude Coach Sign Up

PIMFA Annual Summit 2018 The recent PIMFA Annual Summit demonstrated the true range and depth of our industry in the way it addressed the potential opportunities and looming challenges that Brexit will undoubtedly bring.

Throughout the day our speakers and panels discussed a wide range of topics; Richard

Monks delving into how regulation is changing and how the industry will have to adapt; a panel covering the incoming generation of Millennial investors and how they differ from the Baby Boomers and, in turn, Gen Z and PIMFA Chairman Lord Deben on the opportunities for investment resulting from climate change All of our speakers and panels referenced the fact that major changes are coming to the industry following the March deadline for the UK to exit the European Union.

To read more on this event, you can view the PIMFA Press Releases here.

Please click here to view the highlights from our 2018 Summit and to reserve your space next year!

With thanks to our sponsors Principal Sponsor

Co-Sponsors

Exhibitors

WiFi Sponsor

Media Partner

Lanyard Sponsor

What's happening in our industry Brexit scam warning issued by UK regulator The UK’s financial watchdog has warned consumers to be on the look-out for scams as fraudsters take advantage of confusion stemming from Brexit.

The Financial Conduct Authority said on Thursday 8th November that it is expecting more scams “during this period of uncertainty”, and warned consumers not to give over their personal bank details in phone calls or emails purportedly from their lender. The warning was part of an FCA update to consumers over how they will be affected by Brexit.

UK banking customers should be largely unaffected because retail operations – even of European lenders – have their own subsidiaries in the UK that have local capital, liquidity and senior managers, all overseen by UK regulators. However, the FCA warned expats in the rest of the EU that they may suffer disruption of their services if they bank with a UK lender.

They said; “EEA citizens, and UK citizens living in the EEA, could be affected if their UK provider cannot operate in the EEA after Brexit,” the FCA notice reads. “Many UK providers are planning to continue providing you services. We expect them to contact you if you need to make any changes.”

The FCA has previously said that inbound European firms will be able to continue on their current regulatory permissions for a period of three years after Brexit. The regulator added that it is planning to extend the ombudsman service and the UK’s deposit-guarantee scheme to EEA firms in this temporary period.

Industry Events Leading in a Regulated Environment New training course launched by Ashridge Executive Education in partnership with PIMFA Leading regulated businesses is difficult and requires a special kind of leader with the personal, organisational and commercial expertise to cope with operating under the regulatory spotlight. This spotlight has intensified with the introduction of a personal accountability regime for Senior Managers by the FCA and PRA and their increased focus on the capability and performance of senior management and leaders.

In response to this, Ashridge Executive Education, specialists in international leadership development, in partnership with PIMFA, are launching a unique leadership masterclass.

This is the first of its kind in the UK and stems from research into what differentiates successful leaders in regulated businesses. The course uses a blend of face-to-face and virtual learning using case studies, visiting speakers and simulations to help develop the insights, skills and mind-sets needed to lead in in a regulated environment.

PIMFA members are offered an exclusive rate when booking this course - please quote PIMFA 1010.

Find out more at: http://www.hult.edu/en/executive-education/landing/global/leading-in-aregulated-environment/ To book: +44 (0) 203 318 6437 / info@ashridge.hult.edu Fee: £2,990 (PIMFA members) / £3,350 (non-PIMFA members) not inclusive of VAT Discount: Quote code PIMFA 1010 to get the exclusive PIMFA members price Venue: Ashridge Executive Education, Ashridge, Berkhamsted HP4 1NS Tutor: Gary Storer MA (Cantab), MBA, MSc, Programme Director & Faculty Ashridge Executive Education

NMBA Interactive Regional Forums Hear from our very own Simon Harrington, Senior Policy Advisor – Public Policy, at The New Model Business Academy (NMBA) interactive regional forums. These seminars provide a great opportunity to fully engage with experts, listen to their advice, have discussions with your peers, and ask questions relevant to your individual and business needs.

Simon’s session will consider the current political environment, priorities for government and the role of trade associations in affecting regulatory and legislative change. In addition, this session will consider what changes we expect in this parliament which will directly impact financial planners and wealth managers as well as lay out PIMFA’s priorities for change in these sectors over the next 5 years.

These full-day events concentrate on the long term sustainability and profitability of your business, and include four hours of structured CPD. All events run from 09.00 - 15.30.

• • • • • •

Nottingham: Tuesday 20th November Coventry: Wednesday 21st November Bolton: Thursday 22nd November Southampton: Tuesday 27th November Exeter: Wednesday 28th November Cardiff: Thursday 29th November

View all the latest Industry Events on our website here.

If your firm has an event that you would like to post on this area, please click here to submit it.

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