.jpg)
The Chartered Institute for Securities & Investment (CISI) welcomes the key proposals in the FSA’s latest consultation paper on the Retail Distribution Review (CP 09/31).
In particular, the CISI applauds the FSA in recognising that professional bodies have a major role in driving change and in particular to ensure high level of behaviour and competence.
The CISI is pleased that the FSA have strongly encouraged individuals to become members of an appropriate professional body and will provide a “safe harbour” to firms who rely on membership of a professional body as a proxy for demonstrating that the individual is fully competent.
The CISI notes the criteria that FSA have outlined about what will constitute a professional body but suggests the definition is tightened to include the requirement that they should also be not-for-profit and, preferably, have a Royal Charter.
Simon Culhane CFSI, CEO, noted that the much predicted Professional Standards Board will not now be created and its function will be carried out within the FSA. Mr Culhane said “I hope that this will mean the FSA will now press ahead with its new code of conduct and focus more on individual’s professionalism when they visit firms.”
Ruth Martin, MD, said “We welcome the confirmation that raising the minimum qualifications standards continues to be at the forefront of the proposals and that continuing professional development will play an increasingly significant part in the raising of future professional standards.”
The CISI also welcomed the proposal by the FSA to add further information to the public of approved persons to show whether they are members of a professional body.
Ruth Martin added “We welcome the flexibility to offer work based qualifications but cautioned that this was no panacea and would be equally demanding as well as expensive. However, we do believe that experienced specialists could benefit from this more practical approach.”
