ISO 22222

Achieving a competitive edge

Agenda

• Who are Standards International.

• An introduction to ISO 22222.

• Benefits – Financial planner and Consumer.

• Six steps of financial planning.Six steps of financial planning.

• Key points.

• ISO 22222 and the regulatory landscape• ISO 22222 and the regulatory landscape.

• The Certification Process.

Funding• Funding.

• Presentation by Locktons.

Q i &• Questions & Answers

Who we are

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

i f i• Pioneers of Best Practice.

• Leaders in the market place.

• UKAS Accredited Certification Body – assessed every 6 months.

• Internationally recognised and followed• Internationally recognised and followed.

• Independent and impartial.

• We work with the professions leading advisers.

What are ISO Standards?

• International Standards Organisation

• Demonstrate the ability to consistently provide a• Demonstrate the ability to consistently provide aproduct or service that meets customer requirements.

• Addresses customer satisfaction through the effectiveapplication of the system, developing processes forcontinual improvement and the prevention of errors andcontinual improvement and the prevention of errors andmistakes.

Why have Standards?

• The CE Mark • The Kitemark

• Identify and meet the needs and expectations of its

• They help businesses to:

• Identify and meet the needs and expectations of itscustomers and other interested parties, i.e. employees,suppliers, owners, societies, to achieve a competitivead antage and to do this in an effecti e and efficientadvantage and to do this in an effective and efficientmanner.

• Achieve, maintain and improve overall performance andcapabilities.

Why have an ISO standard for financial planners?

ISO 22222 – An Insight

• Enables consumers to identify financial planners who• Enables consumers to identify financial planners whopossess the right knowledge, skills, ethics andexperience to deliver their desired level of service.

• Codifies best practice in financial planning fromacross the world and as a result will help toacross the world, and as a result will help toincrease consumer confidence.

Financial Planner - Benefits

• Improved performance.Simplified and effective processes and • Simplified and effective processes and documentation.

• Standardisation of good working practices.• Improved communication.• Promotes awareness of quality, professionalism,

better public awareness and public imagebetter public awareness and public image.• Improved sales and marketing opportunities.• Exemption from the CII AF5 module.p• Reduced risk = potential reduced insurance costs.• Improved compliance - Supports regulatory

i trequirements.

Consumer Benefits

• Receive a value added service. • Assurance of quality through independent third-q y g p

party certification.• Assurance that regulatory requirements are being

adhered to and monitoredadhered to and monitored.• Evidence that continual improvement and their

needs are core to the business.• Confidence that the adviser has the right level of

knowledge and skills to deliver their desired level of service. se ce

Raising the standards…

ISO 22222 – The Six Steps

1. Establishing and defining the client and personal financial planner relationshipp p

2. Gathering client data & determining goals and expectations.

3. Analysing and evaluating the client’s financial status.

4. Developing and presenting the financial plan.

5. Implementing the financial planning recommendations.

6 M it i th fi i l l d th fi i l l i 6. Monitoring the financial plan and the financial planning relationship.

Information Security

• Information is an asset – protect it.

• FSA’s Data Security recommendations.

• CIA – Confidentiality, Integrity and Availability.

Identify threats Internal external accidental and • Identify threats – Internal, external, accidental and malicious.

l l l d f• Implement controls – Policies, procedures, software and hardware functions.

Implementing Information Security

• Identify threats and weaknesses.• Review security – building personnel IT• Review security – building, personnel, IT.• Review contracts – Client, suppliers.• Establish who has access to your data?y• Mobile media – Blackberry’s, USB sticks.• Encryption devices.

Business Continuity

Business Continuity Management

Holistic management process that identifies potentialHolistic management process that identifies potentialthreats to an organisation and the impacts tobusiness operations that those threats, if realised,

i ht d hi h id f k fmight cause, and which provides a framework forbuilding organisational resilience with the capabilityfor an effective response that safeguards theinterests of key stakeholders, reputation, brand andvalue-added activities.

Definition: BS 25999-1:2006

Ethics

“ISO 22222 requires a high level of knowledge and competency and factors in TCF through compliance

i d t hi h thi l t d d It i th issues and expects very high ethical standards. It is the only such requirement for financial planners/advisers to

explicitly ask clients if they would like to invest taking into account socially responsible, ethical or religious

beliefs”

Source: Robin Keyte,ISO 22222 Certified,

CFP Certified and Chartered Financial Planner

Source: (Financial Adviser 08th May 2008)

Behaving with integrity

The 10 Key Ethical Principles

• Putting clients interests first.

• Behaving with integrity.

• Exercising due care and diligence.

• Working within regulatory and legislative frameworks.

• Carefully and comprehensively managing conflicts of interest.

C i ti i l d i t • Communicating in a clear and appropriate manner.

• Providing suitable and objective recommendations.

• Making all material disclosures.

• Protecting client confidentiality.

• Demonstrating and maintaining appropriate competence.

Continual Improvement

• PDCA – Plan, Do, Check & Act

• Client feedback – Positive/negative

CPD E b d f i li• CPD – Embed professionalism

ISO & The Regulatory Landscape

Michelle Hoskin

Where does ISO 22222 fit in with the Where does ISO 22222 fit in with the current and future landscape?

Consultation Paper – CP09/31 Delivering the Retail

• Three key documents to review:

Consultation Paper – CP09/31 Delivering the Retail Distribution Review (December 2009).

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

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

• Key Objective:

Forcing best business principles to professionals who primarily are seen as doing a job.

Key Themes - Proposals

1. Improve the clarity with which firms describe theirservices to clients.

2. Address the potential for adviser remuneration todistort consumer outcomes; anddistort consumer outcomes; and

3. Increase the professional standard of advice.

Key Themes - Proposals

1. Improve the clarity with which firms describe theirservices to clients.

Description of advice services (Independent

Clarity of - Scope of service, service level

b hor restricted). agreements, brochures, marketing, website, personal profile, company letters and literature.

Plus: client authorisationPlus: client authorisation.

Key Themes - Proposals

2. Address the potential for adviser remuneration todistort consumer outcomes.

Introduction of Adviser Charging.

Undervaluing knowledge, wisdom and experience.

fValue of services delivered, what is charged for and when, clarity of message

Setting your own

and literature. Ongoing services!.

H l l t d f i !Setting your own charging tariffs. How calculated, fair!

Individual adviser Targets, KPI’s (quality) Individual adviser remuneration.

Targets, KPI s (quality) and pay structure.

Key Themes - Proposals

3. Increase the professional standards of advice.

More focus on setting, monitoring and enforcing

In-depth assessment methods, scope of service understood and enforcing

standards of competence and ethical behavior

service understood, competence and CPD activity aligned.

ethical behavior.

Need to “prove” i iti l d i

Assessment report and f db k i d d tl initial and ongoing

competence.feedback, independently assessed annually!

Key Themes – Proposals cont…

3. Increase the professional standards of advice.

Increase in quality and control over CPD activity

How selected, recorded and implemented.

CPD activity.

Increase level of qualification to QCF

Already a requirement of eligibilityqualification to QCF

Level 4.

Vi ibl dh t th

of eligibility.

Ethi l i i l Visibly adhere to the required ethical standards.

Ethical principles assessed and evidenced.

ISO 22222 - Key Differentiators

1. All about Best Practice – not just about regulatoryadherence.

2. The rules coming out now were already introducedin 2000 with the ISO.

3. Supports your existing compliance provision.

4 Id i ' i i f i d4. Identity's opportunities for improvement – goodbusiness principles (IS, BC, CI).

5 Id tit ' t iti t i d b i5. Identity's opportunities to improve – good businessprinciples.

6 Not limited to UK rules – internationally recognised6. Not limited to UK rules – internationally recognisedand respected.

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 the consumer is a more efficient and transparent process in receiving holistic financial planning advice”

Andrew Reeves, The Investment Coach LimitedAndrew Reeves, The Investment Coach Limited

“ISO 22222 certification process was the best available poverall assessment of knowledge, competency and fair

customer treatment”

Robin Keyte director of Towers of TauntonRobin Keyte, director of Towers of Taunton

The Certification ProcessEligibility

Training

Gap Analysis

I l t ti

Pre-Assesment (optional)

Implementation

Pre Assesment (optional)

Assessment

Certification Awarded

Quality Review Audit

Certification Awarded

Funding – What are you entitled to?

• Regional.g• Sector.• Training and Gap Analysis workshops.• The process.

How do you access funding?

Eastern Region

• Leadership and Management.R i l f di• Regional funding.

Leadership and Management

• Funded by Learning Skills Council.

• Up to £1000 of funding for Leadership and Management training.

• The first £500 is 100% funded.

• A further £500 as matched funding.

Eligibility

A company with 5 to 249 employees • A company with 5 to 249 employees.

• Owner/Director/Senior manager.

• Not have accessed L&M since October 07.

• One provision per company - ONE bite of the cherry.

Application Process

• Notify Standards International of funding request.

Complete on line application• Complete on-line application.

• Individual Training Assessment and Personal gDevelopment Plan.

• Confirm T & G workshop attendance and pay Confirm T & G workshop attendance and pay invoice.

• Complete evaluation and gain submit paid invoice.Complete evaluation and gain submit paid invoice.

• Funding provided once training ends and above provided – payment within 30 days.provided payment within 30 days.

Regional Funding - Beyond 2010

• Funded by EEDA and the European Social Fund.

• Up to £10,000 of matched funding.

• 10 sectors eligible – Financial services eligible.

• Eligibility – up registered company up to 250 staff.

Can be used in conjunction with the Leadership and • Can be used in conjunction with the Leadership and Management Funding programme.

Beyond 2010

• Notify Standards International of funding request.

Complete application• Complete application.

• Individual Training Assessment and Personal Development Plan Development Plan.

• Confirm T & G workshop attendance and pay invoice.

• Complete evaluation and submit paid invoice.

• Funding provided once training ends and above provided – payment within 30 days.

Sponsor - Locktons

Umesh Puri & Richard Turnball

Any Questions?