TC68 Amsterdam - ISO 22222 Presentation

Standards International Ltd

Amsterdam 13th May 2011

Raising the standards with ISO 22222

Presentation Overview

• Standards International

• ISO 22222 - Our Scheme

• ISO 22222 – The Benefits

• The UK – Our Challenges• The UK – Our Challenges

• The Key Players – Our Responsibilities

• So what next?

Raising the standards…

Who we are

• Established in June 2007 (Pilot Scheme launched in April 2006)

• Leaders in the financial services certification

• UKAS Accredited

• We work with the profession’s leading advisers

• Pioneering Best Practice – added value

• Independent and privately owned - Unique Offering

• Work done so far:

o Awareness Campaigns - Professional and Consumer

o Articles, Features, Presentations and The Book

o Partnerships - Profession Wide

o The Approved Associate Programme (AAC)


o Value Benefits Guarantee

The Certification Process

ISO 22222 – The Key Elements

1. Operational, financial and security management

2. The Six Steps of the Financial Planning Process

3. Ethical Behaviour and Ethical Financial Planning

4. Information Security, Client Confidentiality and Data Protection

5. Risk Management and Business Continuity

6. Continual Improvement


Adviser Quotes

“Going through the ISO process has enabled us to look at our business in

way never before possible. The net result for

the consumer is a more efficient and transparent process

in receiving holistic financial planning advice”

Andrew Reeves, The Investment Coach Limited

“ISO 22222 certification process was the best available overall

assessment of knowledge, competency and fair customer

treatment”

Robin Keyte, Towers of Taunton

‘ISO 22222 should be the standard that every financial planner should strive to

achieve, it brings a focus on the financial plan, business efficiency processes and

most importantly the client in a practical and technical sense. This must be the

standard for all professional financial planners with RDR looming!”

Paul Richardson, Concept Financial Planning

And a few more...!

“this [ISO 22222]is exactly what we were looking for to get our

business running as professionally as we possibly can”

Paul Steel, Estate Matters

“it [the ISO 22222 assessment]made you reflect on the issues you

don’t always think about on a day to day basis, and made you take


don’t always think about on a day to day basis, and made you take

time out to look at these and realise their importance in running the

business/advice process”

John Holt, IFA Ltd

“The award, while requiring a sufficient level of qualification from

the designated individual, then calls upon the members of the rest

of the company to make their equally valid contribution”

Peter Oddey, Spectrum Financial Planning

Financial Planner Benefits

• Improved performance

• Simplified and effective processes and documentation

• Standardisation of good working practices

• Improved communication (internally/externally)

• Promotes awareness of quality and professionalism, better public • Promotes awareness of quality and professionalism, better public

awareness and public image

• Improved sales and marketing opportunities

• Reduced risk = potential reduced insurance costs

• Supports regulatory requirements

• The acquisition of a symbol representing

the internationally recognised

quality standard

• Reduction in ongoing certification costs - Referral Programme

Consumer Benefits

• Receive a value added service

• Assurance of quality through independent third-party

certification

• Assurance that regulatory requirements are being adhered to and

monitored


• Evidence that continual improvement and their needs are core to

the business

• Confidence in the sustainability of the business

• Confidence that the adviser has the right level of knowledge and

skills to deliver their desired level of service

The UK – Our Challenges

• Bad Reputation – Retail and Wholesale Financial Services

• Low level qualification requirements

• Sales focused

• Unfair/commission focused charging structures


• Unfair/commission focused charging structures

• Product and not “client focused”

• Wrong model – technician not business!

• Consumer Confusion

The Key Players – Our Responsibilities

• Financial Services Authority (FSA)

o Raising Qualifications

o Consumer Agreed Remuneration

Defined Advice Models


o Defined Advice Models

o Treating Customer Fairly (TCF) – 6 Drivers

o Ethics – Statement of Professional Standing

o Support for Professional Standards – ISO 22222 & BS8453

• Government – (UK and European)

o Financial Support for ISO 22222 Training and development

o Consultation Paper – CP09/31 Delivering the Retail Distribution

Review (December 2009).

Policy Statement # 1 – 10/6 Distribution of retail investments

• Four key documents to review:

The Retail Distribution Review (RDR)

o Policy Statement # 1 – 10/6 Distribution of retail investments (March 2010).

� Delivering the RDR: Professionalism CP10/14 (June 2010).

o Forcing best business principles to professionals who primarily are

seen as doing a job.

• Key Objective:


� Distribution of retail investments: Delivering the RDR

professionalism (January 2011).

1. Improve the clarity with which firms describe their services to

clients.

Key Themes - Proposals

2. Address the potential for adviser remuneration to distort

consumer outcomes; andconsumer outcomes; and

3. Increase the professional standard of advice.


1. Improve the clarity with which firms describe their services to

clients.


• Description of advice

services (Independent or

restricted).

• Clarity of - Scope of service,

service level agreements,

brochures, marketing, website, restricted). brochures, marketing, website,

personal profile, company

letters and literature.

• Plus: client authorisation.


2. Address the potential for adviser remuneration to distort

consumer outcomes.


• Introduction of Adviser

Charging.• Undervaluing knowledge, wisdom

and experience. Value of services

delivered, what is charged for and

• Setting your own charging

tariffs.

delivered, what is charged for and

when, clarity of message and

literature. Ongoing services!

• How calculated, fair!

• Individual adviser

remuneration.• Targets, KPIs (quality) and pay

structure.

3. Increase the professional standards of advice.


• More focus on setting,

monitoring and enforcing

standards of competence

and ethical behavior.

• In-depth assessment methods,

scope of service understood,

competence and CPD activity

aligned.and ethical behavior.

• Need to “prove” initial

and ongoing

competence.

aligned.

• Assessment report and

feedback, independently

assessed annually!


3. Increase the professional standards of advice.

Key Themes – Proposals cont…

• Increase in quality and

control over CPD activity.

• How selected, recorded and

implemented.

• Increase level of

qualification to QCF

Level 4.

• Visibly adhere to the

required ethical

standards.

• Already a requirement of

eligibility.

• Ethical principles assessed

and evidenced.


1. All about Best Practice – not just about regulatory adherence.

ISO 22222 - Key Differentiators

2. The rules coming out now were already introduced in 2000 with

the ISO.

3. Supports your existing compliance provision.3. Supports your existing compliance provision.

4. Identifies opportunities for improvement – good business

principles (IS, BC, CI).

5. Not limited to UK rules – internationally recognised and

respected.



• Standards International (SI)

o Scheme Enhancements

o Affiliates and Partners

Client Charter


o Client Charter

o Workshops for students

o Educational Forums and the UK’s 1st Quality Conference

o International Promotion

o And much more!


• British Standards Institute (BSI)

o ISO 22222 - Developments

o Development of BS 8453

Development of a firm standard (ISO 22222 compulsory)


o Development of a firm standard (ISO 22222 compulsory)

• Chartered Quality Institute (CQI)

o Standards Development

o Raising the recognition of Quality!


• The Firms and Planners

o Up skilling

o Defining their service proposition

Client Segmentation


o Client Segmentation

o Client Centric

o Professional Connections

o Re defining their “Business Model”

o 3rd Party validation – through ISO 22222 certification

So What Next?

• Standards International (SI)

o Continue to raise the profile of ISO 22222 with the market

and government

Committee and Development Forum


o Committee and Development Forum

o “Thought leaders” in quality standards

o Expand our scope of certification

o Add value at every opportunity

o Professional body status

o And much more!

Any Questions..?

For further information please contact me or a

member of my team:

Tel: 0044 (0)1462 790894


Tel: 0044 (0)1462 790894

Email: [email protected]

Web: www.standardsinternational.co.uk

Twitter: http://twitter.com/SIISO22222

LinkedIn: http://uk.linkedin.com/in/ISO22222expert

Documents

TC68 Amsterdam - ISO 22222 Presentation