WMA Bulletin 23rd February 2016
Need to Know What's happened in our industry? EU Referendum vote set for 23rd June 2016
FCA Update to CRD IV
Following negotiations led by PM David
The FCA has recently updated its webpage
Cameron the Government has confirmed
on CRD IV. We would encourage firms to
that a public vote will be held on 23rd June
review the content of the webpage and the
on the contentious issue of Brexit.
relevant links. All firms, large and small,
As shown on the BBC, the Prime
should be aware that the FCA will be
Minister addressed the
placing greater focus on the Supervisory
Commons yesterday about the recent
Review and Evaluation Process (SREP)
treaty changes.
and Pillar 2 during 2016.
webpage
The Government also published this document yesterday outlining why the UK will be 'stronger, safer and better off by remaining as a member of a reformed EU'. This document is their official analysis of the UK’s relationship with the EU – as required to be published ahead of the referendum.
Benchmarks The completion of the Level 1 EU text on Benchmarks legislation, together with ESMA discussion paper on handling the Level 2 issues, has refocused WMA attention on this area. Unfortunately, the post-Trilogue Level 1 text contained not the Parliamentary version of the definitions of
Joint Money Laundering Steering Group (JMLSG)
who and what should be regulated (which
Editorial Panel
broader Council definitions.
The JMLSG Editorial Panel met on 10th February and identified sections of the Guidance to begin redrafting in light of changes from the Level 1 language of the 4AMLD/R. The process will take some time and priority and sequencing, as well as the final substantive texts, have to be approved
were favourable to the WMA) but the much This reflected rear-guard action by the French Government who believe that even the smallest index should be included in order to prevent manipulation. The result is that we are working out action to prevent WMA from having to become an authorised entity in order to continue with
by the JMLSG Board. The Panel
the retail indices, and analysing the
expressed concern at the proposal of the
documentation more generally to ensure
Commission to bring forward the date of
member firms can continue using
implementation of the new law to the end of
benchmarks as before.
2016. Representations may be made about this.
What's happened in WMA? First Millennial Forum Debate
New Online Fraud Tool A new online fraud awareness tool is
On Monday 22nd February the WMA held
available on our website. This tool has
the first of their workshops for the Millennial
been developed by a group of firms for the
Forum. Our firms’ participants were spilt
benefit of the whole financial services
into 4 groups of 6-7 where they were given
community – share the knowledge and
topics to consider and encouraged to
download it here.
debate the issues for Millennials with the end objective of presenting their findings in
Prospectus Directive Review
front of a panel of industry experts.
John Barrass visited Brussels on 16/17th
Participants, who had an average of 12
February to speak to all the Shadow
years’ experience, demonstrated
Rapporteurs in the European Parliament
enthusiasm and a genuine interest in
dealing with the Prospectus Directive
debating the issues impacting the Millennial
Review, and to key national delegations,
generation. We look forward to facilitating
such as the Germans, about the same
the second workshop at our forum in April.
issue. The aim was to reinforce our support for the
EU Regulatory Framework for
European Commission’s proposal for the
Financial Services
abolition of the €100,000 denomination
We have submitted our response to the
threshold for corporate bonds, and to
European Commission’s call for evidence
ensure that the majority of Parliamentarians
on the EU regulatory framework for
and member state governments would back
Financial Services, it can be found on our
this position against counter lobbying by the
website in the news area. We are
wholesale markets who see it as
continuing work under the auspices of the
threatening the position they have built up
International Regulatory Strategy Group
around the prospectus exemption for large
(IRSG) to gather and submit further
denomination issues that the threshold
substantive evidence for the European
incentivises.
Commission’s consideration.
Our view, shared by HMT and the FCA, is that retail investors must have equal access
Bulletin Now Available Online If you missed the latest issue of Bulletin or would like to view past editions you can now find them online in the news section of our website.
to good quality corporate bonds.
Coming Up What's coming up in our industry? Transparency of Trilogues
Brussels: Green Paper and
We are working on a response to the
Cumulative Impact Assessment
European Ombudsman’s consultation on the transparency of trilogues. We've often highlighted their opaqueness, most recently during a Treasury Select Committee hearing regarding the economic and financial costs and benefits of the UK’s EU membership. The response will reiterate these concerns.
There will be a further visit to Brussels on 24th February by John Barrass to discuss with the European Commission the outcome and next steps of their assessment of the cumulative impact of regulation on the WMA financial services sector, and the state of play on the Green Paper on Retail Financial Services.
Pensions
The purpose will be to ensure that our
Defaqto will be holding a Conference in
views of how the retail financial services
Birmingham on 25th February on pensions
markets in the EU should be handled
and the Wealth Management industry.
remain uppermost in the minds of the
Many WMA members will be present and
European authorities. There will be a
Sanlam Private Wealth will present a
Public Hearing on the Green Paper in
pensions paper reflecting work with the
Brussels on 2nd March. WMA will attend.
WMA on the position of our sector on how personal pensions should be handled by the Government. John Barrass will be attending and speaking for the WMA.
What's coming up in WMA? Brexit
Private Banking Working
As the date for a UK referendum on EU
Group (PBWG)
membership draws nearer, the WMA is
We have begun work with the International
working on holding a public debate on the
Capital Markets Association (ICMA), whose
Brexit issue just before with speakers for
membership includes a large number of
and against a motion and a live audience
Swiss Private Banks, on breathing life back
who will be asked to vote before and after
into the PBWG in order to bring together
the debate has taken place.
more coherently the views of institutions in
We will also hold an in-house discussion
different European countries serving the
among members to establish their different
same consumer interests. The aim is to
views on the possible consequences for
create a more powerful European lobby
WMA businesses of remaining in the EU or
base to influence the EU authorities as they
voting to leave it, and will aim to publish the
develop thinking about the European retail
anonymised summary results in a WMA
financial services markets in their Green
position paper. This will go some way
Paper on retail financial services and in
towards meeting the Treasury Select
their forthcoming review of retail financial
Committee expectation that there should be
advice and distribution across EU member
contingency planning by financial sector
states.
associations and their members about what to do in the event of the UK leaving the EU.
WMA Insight 360: The Client Experience
WMA Investment Conference
The first WMA Insight 360 event for 2016
2016
will take place on Thursday 10th March.
The WMA Investment Conference seeks to
This insight series will be used to discuss
tackle topics of direct interest and relevance
what we, as an industry, are doing to
to our member firms’ front office
improve the client experience for the end
professionals. Last year’s event was
investor. The panel will consist of SMEs on
attended by delegates ranging from CEOs
the topic of Client Experience who will
to CIOs, portfolio managers to investment
share their insights and debate the
strategists, relationship managers to
challenges the wealth management
graduate trainees. Book online now to
industry faces. To ensure you don’t miss
secure your place.
out, book your place now through our new online events area.
If you have forgotten or do not have your WMA log in details, please contact us at enquiries@thewma.co.uk. Wealth Management Association (WMA) 22 City Road Finsbury Square London EC1Y 2AJ
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