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The SII supports this important paper from the FSA and endorses the main recommendations to improve professionalism across the sector. This consultation paper clearly states the intention to raise standards of mandatory examinations across the retail sector, to introduce and measure mandatory Continuing Professional Development and to introduce an industry wide Code of Ethics, which has significant areas of commonality with the SII's own Code.
The SII recognizes, as the FSA does, that high standards are already evident in many firms and for many investment advisers. The SII is a member of the group that has been advising FSA as it develops these initiatives for formal consultation because it recognises how important it is for the private client part of the sector to be fully represented in proposals that will affect all of the investment managers and advisers in our sector.
A major driver for higher standards in recent months has been the need to restore trust and confidence in the financial services sector as a whole, the banking crisis having occurred after the RDR initiative was launched. The SII suggests that these higher standards, which are now being applied to the retail sector, should be expanded to include the wholesale sector, which is where the core problems currently affecting the financial services industry originally arose.
The SII will now be focussing on contributing to the new examination standards, anticipated to be in examinable form by the end of 2010. All existing advisers need to meet the requirements of higher level qualifications by the end of 2012. Some already possess relevant qualifications and can seek advice directly from the SII for confirmation.
The SII recognises that many of its members, with long and successful experience will however have to take a further formal examination (or possibly an alternative assessment through an oral examination) to demonstrate that they possess the FSA's higher level benchmark. For existing advisers the SII Certificate in Private Client Investment Advice & Management meets the step-change requirements as an interim solution for existing advisers and has been endorsed by both the FSA and the Financial Services Skills Council (FSSC). Candidates can then bridge any gaps between the new and the current exam standards through continuing professional development. The qualification consists of one unit which is assessed by a three-hour written examination and the syllabus is available at www.sii.org.uk. New advisers are recommended to take the SII Masters Programme in Wealth Management which meets all current requirements and is also at a higher level.
Simon Culhane FSI, SII CEO said: “Our members and their firms have already shown a genuine commitment to high standards of behaviour, having been steeped in the tradition where 'my word is my bond' was a vital component of competence. We are delighted that the new proposed Code of Ethics chimes well with our own and applaud the FSA in proposing a mandatory CPD scheme of 35 hours. The SII will continue to play major role in raising professionalism for the Industry.”
Ruth Martin, SII Managing Director said: “From Edinburgh to Exeter and Leeds to London, SII stakeholders have supported the need for higher standards whilst recognising that for some firms and members the process of demonstrating these will involve further investment and costs. The SII is greatly encouraged by the commitment to change which our members recognise is part of the necessary restoration of public confidence in the sector as a whole, and we must now contribute fully to the next stages of examination development and continuing learning proposals ; this will include exploring the potential to offer an alternative assessment to traditional examinations, as outlined in the consultation paper .”
