Following consultation with its members, the Securities & Investment Institute has responded broadly positively to the FSA’s consultation document (CP 09/18) on its proposals to raise standards of professionalism.
The SII organised a series of presentations across the country and received feedback from 500 members who demonstrated consistently high support for compulsory Continuing Professional Development, an industry wide Code of Ethics and also for the raising of examination levels for investment advisers, across the sector affected by the RDR.
However, whilst SII is supportive of the general thrust of the professionalism proposals, it is aware that the there are many unanswered questions, particularly over the role of the proposed Professional Standards Board on which a consultation paper is about to be issued.
The SII endorses the FSA’s approach to professionalism, which seeks to go beyond the rhetoric of exhorting best practice in maintaining competence and behaving ethically, by setting out specific proposals around the monitoring and measurement of relevant CPD and an ethical code which is similar to the SII’s own code.
The securities and investment sector has a distinguished record of examinations recognised at graduate level. Whilst the Institute and our members strongly support the raising of standards for existing advisers across the sector from level 3 to level 4, equating to first year undergraduate level, there was also overwhelming support from our roadshow participants for new entrants
We therefore call upon the FSA to ensure that professional bodies seeking to ensure relevance and excellence for specific job roles covered by RDR be supported in offering provision above level 4. We believe that FSA should consider stating a longer term objective to raise standards to level 6 for new entrants post 2012.
We also urge the FSA to review its proposals for alternative assessments especially for the small number of experts, in specialised areas such as Eurobonds, who are already operating at a level well above level 4, but for whom the new examination proposals will not be relevant but who nevertheless fall under the RDR requirements. We suggest that a restricted license may be an option.
Simon Culhane, FSI, chief executive of the SII, said : “We received strong feedback from our members for the FSA to specifically consult on the case for mandatory membership of a professional body. Not only is this cost effective, but membership of a credible, chartered, professional body whose sole remit is to holistically combine examinations, continuing professional development and ethics, is the embodiment of professionalism and is well understood by the public from its interaction with other professionals in other sectors.”
Ruth Martin, the SII’s managing director added: "The SII road shows endorsed the proposals and demonstrated that in preparing for the RDR our members are ready to embrace change, for the benefit of the industry, its reputation and its users, even though for many of them it means more examinations.”