A recent study has shown that over three quarters of those working in the UK securities and investment industry believe that the Financial Services Authority (FSA) should consult on the value of mandatory membership of a professional body, says the Chartered Institute for Securities & Investment (CISI).
The findings are the result of a survey published this week by the Institute, which became the Chartered Institute for Securities & Investment from1 November. The survey was compiled with data from a two month UK-wide series of presentations run jointly by the CISI and APCIMS to determine members’ expectations following the FSA’s publication of its consultation paper on the Retail Distribution Review (RDR), CP09/18.
The RDR recommends a minimum level of mandatory qualification for those involved in selling financial services products to members of the public, as part of their drive to restore confidence in the market, by raising standards across the retail sector and introducing mandatory Continuing Professional Development. In addition, the FSA proposed to introduce an industry-wide Code of Ethics, which has significant areas of commonality with the CISI’s own Code. The vision of the RDR complements the key requirements of Chartered status: high level examinations, rigorous Continuing Professional Development and a commitment to ethics and integrity, underpinned by a strong disciplinary framework.
The CISI gathered data from a total of 500 members in 14 UK cities, a high proportion of whose jobs fall within the “client facing” or “advisory” category. When asked if the FSA “should consult on the value of mandatory membership of a professional body”, 86% of respondents said they believed that the FSA should consult.
When questioned whether they were “in favour of the raising in the level of qualifications”, 89% of respondents were in favour.
On Continuing Professional Development, 90% of all respondents have access to a CPD scheme either through their employer or through a professional body such as CISI. When asked if “the RDR proposes realistic solutions to raise standards of professionalism”, 88% of respondents said “yes”, with most respondents clearly expressing a wish to raise standards through CPD, ethics and higher level examinations.
Simon Culhane FSI, Chief Executive of the Chartered Institute for Securities & Investment said, “The results of our RDR roadshows clearly demonstrate our members’ commitment to high standards in their firms. This chimes well with the granting of our Royal Charter, which is all about recognition of the contribution the Institute makes to greater professionalism in the industry.”
Ruth Martin, Managing Director, added “Many of our members will now have the opportunity to become personally chartered and therefore publicly demonstrate that they are at the pinnacle of their profession.”