The CII has launched the first of its position papers on the future landscape of the financial services industry, in response to the Financial Services Authority (FSA) Retail Distribution Review (RDR).
Its first paper will outline the definition of what professionalism means in the post-RDR environment.
CII chief executive Dr Sandy Scott said:
“We will lead the debate and hope to develop a single framework of ethics for the sector. This paper sets out some ideas which we hope will meet the approval of our members and act as a basis for practical reform.”
Entitled “A Professional Body for Retail Financial Services?” the CII’s paper outlines a number of key elements which include:
· A single framework of ethics and tiered technical/skills-based standards;
· A single, independent professional standards board for the retail financial services sector with a disciplinary function and substantial public interest representation;
· New complaints system, reporting to the professional standards board as well as the professional body’s own governing board; and
· The introduction of meaningful sanctions to deal with serious breaches of the code of ethics
CII president Lord Hunt of Wirral said: “One way to ensure we rebuild public trust – and it is not a short-term or easy fix – is to build professionalism throughout our industry so that we match the attributes, capabilities and behaviours of the best of other professions.
“Professionalism is not simply about passing exams, important though this is. It is a declaration to the public at large that the advice given by an individual or firm is of the highest quality; is based solely on the needs of the customer; is provided by someone who is not exceeding his or her level of competence; is governed by a code of ethics; and is subject to consistent monitoring, with effective discipline applied to those who transgress.”
“I have made ‘professionalism’ my presidential theme precisely because I perceive a direct link between enhanced professional standards and improving public confidence and trust amongst consumers. "
