AAC Training Presentation 2009

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AAC Training Presentation 2009

  1. 1. Approved Associate Consultant Training How to implement ‘Best Practice’
  2. 2. Agenda • An introduction to ISO 22222 • Benefits • Financial Planner, Consumer, Consultants • Introduction to BS 9222 • The Approved Associate Consultants Programme • The Certification Process • How to implement the six steps of financial p planning g
  3. 3. Agenda • Risk Management • Information Security, IT Security, y, y, Business Continuity, Compliance • Ethics • Continual Professional Development • Retail Distribution Review • How to document your Practice Management System • Implementation planning
  4. 4. What are ISO Standards? • ISO standards – more common to the business market • ISO – International Standards Organisation Demonstrates the ability to consistently provide a product or service that meets customer requirements in line with regulatory requirements and requirements, and… Addresses customer satisfaction through the effective application of the system, developing p pp y , p g processes for continual improvement and the prevention of errors and mistakes.
  5. 5. Why have National and International Standards? • The Kitemark • The CE Mark • They help businesses to: Identify and meet the needs and expectations of its customers and other interested parties, i.e. employees, suppliers, owners, societies, to achieve a competitive advantage and to do this in an effective and efficient manner. Achieve, Achieve maintain and improve overall performance and capabilities.
  6. 6. Why have an ISO Standard for Financial Planners? Raising the standards ..
  7. 7. ISO 22222 – An Insight • Enables consumers to identify financial planners who possess the right knowledge, skills, ethics and experience to deliver their desired level of service. • Codifies best practice in financial planning from across the world and, as a result, will help to th ld d lt ill h l t increase consumer confidence.
  8. 8. ISO 22222 – The Six Steps 1. Establishing and defining the client and personal financial planner relationship 2. Gathering client data and determining goals and expectations 3. Analysing d A l i g and evaluating th client’s fi l ti g the li t’ financial status i l t t 4. Developing and presenting the financial plan 5. 5 Implementing the financial planning recommendations 6. Monitoring the financial plan and the financial g p planning relationship
  9. 9. Financial Planner Benefits • Improved performance • Simplified and effective processes and documentation • Standardisation of good working practices • Improved communication (internally/externally) • Promotes awareness of quality and professionalism professionalism, better public awareness and public image • Improved sales and marketing opportunities • The acquisition of a symbol representing the internationally recognised quality standard ISO 22222 • Reduced risk = potential reduced insurance costs • Improved compliance - supports regulatory requirements
  10. 10. Consumer Benefits • Adds value to services provided by the Financial Planner • Assurance of quality of service • Commitment to continual improvement and compliance through independent third-party li th gh i d d t thi d t accreditation • Increases perception of the Financial Planner s profile, Planner’s and company’s culture and image • Enhances business relationships - building trust, securing repeat business • Reassurance that regulatory requirements are being adhered to and monitored
  11. 11. BS 9222:2007 • BS 9222:2007 Personal financial planning guidance on the application of BS ISO 22222 and assessment of compliance l • Provides UK-specific information on the application of the t d d th standard • Information to tailor the use of the standard to the requirements of the UK financial environment
  12. 12. The Certification Process
  13. 13. What does ISO 22222 mean for Compliance Consultants? • Knowledge of International ‘Best practice’ Standard. • Global service offering • Financial benefits • Independent assessment • Demonstrate credibility and confidence y • Attract new business • Adds value to your services – retain clients y • Latest updates on ‘Best Practice’
  14. 14. Approved Associate Consultant (AAC) Programme • AAC Process • Code of ethics • Benefits • AAC Register
  15. 15. How to implement the Six Steps 1. Establishing and defining the client and personal financial planner relationship 2. Gathering client data & determining goals and expectations 3. Analysing d A l i g and evaluating th client’s fi l ti g the li t’ financial status i l t t 4. Developing and presenting the financial plan 5. 5 Implementing the financial planning recommendations 6. Monitoring the financial plan and the financial g p planning relationship
  16. 16. Risk Management • Which areas of ISO 22222 are associated with Risk Management?
  17. 17. Information Security • Information is an asset – protect it! • CIA • Confidentiality • Integrity • Availability • Identify threats – internal, external, accidental and malicious • Implement controls – policies, procedures, software and hardware functions
  18. 18. Implementing Information Security • Identify threats and weaknesses • Review security – building, p y g, personnel, IT , • Review contracts – clients, suppliers • Establish who has access to your data • Mobile media – Blackberrys, USB sticks • Encryption devices • Gap Analysis against FSA’s Data Security Recommendations/ y ISO 27001 Raising the standards ..
  19. 19. Business Continuity • Business Continuity Management Holistic management process that identifies potential threats to an organisation and the impacts to business operations that those threats, if realised, might cause and which provides a framework for building organisational resilience with the capability for an effective response that safeguards the interests of key stakeholders, reputation, reputation brand and value added activities value-added activities. Definition: BS25999-1:2006
  20. 20. Implementing BCM Raising the standards ..
  21. 21. Implementing BCM • Identify your key services, the critical activities and resources that support them • This involves the following steps: • Business Impact Analysis (BIA) • Identification of critical activities • Determination of continuity requirements • Evaluation f threats to iti l ti iti E l ti of th t t critical activities • Undertaking of a risk assessment • Determination of measures to treat or mitigate these risks
  22. 22. Compliance • Which areas of the standard are associated with compliance? • How does this correlate with what you currently y y do?
  23. 23. Ethics “ISO 22222 requires a high level of knowledge and competency and factors in TCF through compliance 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 ” Source: Robin Keyte Keyte, Chartered and Certified Financial Adviser, (Financial Adviser 8th May 2008) Raising the standards ..
  24. 24. The Ten Key Ethical Principles • Behaving with integrity • Putting clients’ interests first • Exercising due care and diligence • Working within regulatory and legislative frameworks • Carefully and comprehensively managing conflicts of interest • Communicating in a clear and appropriate manner • Providing suitable and objective recommendations • Protecting client confidentiality g y • Making all material disclosures • Demonstrating and maintaining appropriate competence
  25. 25. Continual Improvement • P D C A – Plan, Do, Check and Act • Client feedback – positive and negative • C P D – Embed professionalism Raising the standards ..
  26. 26. Deming’s Cycle of Continual Improvement
  27. 27. Continual Improvement
  28. 28. CPD • Have a plan and set objectives • Adviser and team • Internal support and development • Technical and Best Practice • Technical Communications Plan • De brief De-brief meetings and review • Technical library
  29. 29. Amanda Bowe - Retail Distribution Financial Services Summit – 4th September 2007 “We set out some different suggestions for debate on what "highly qualified" might mean – and these were deliberately different because we want your views on what standards should apply. The paper makes it clear that we are talking about higher professional standards here, not just higher qualifications. For example, we have f focused on chartered or certified because they are the standards f y familiar to many in the market. It might be that the ISO 22222 could provide an alternative or even complementary standard. We want to see the right balance between the qualifications required to g q q do the job, and the experience and knowledge gained whilst doing it. We are not just interested in examinations. We are interested in a range of things that constitute professionalism including ethics, competence, experience, and so on. Identifying how best to achieve this balance is one area where the industry could usefully take the lead”.
  30. 30. Quotes from the RDR • “We want standards of professionalism that inspire consumer confidence” • “Being a professional financial p g p planner is something to which all would aspire” • “The Professionalism and Reputation Group recognised the importance of ethical and behavioural standards” b h i l t d d ”
  31. 31. How to document a Practice Management System • Introduction • The Company ie profile, scope of services, insurance, member associations b • Mission Statement, Company policies • Code of ethics - TCF • Company Objectives • Business Review Process • Operational P O ti l Procedures – 6 St d Steps • HR/CPD – tools, methodology, process, review • Risk Management Procedures g • Control of documents and records • Purchasing/Accounts • Continual Improvement
  32. 32. Implementation Planning • Identify existing policies, processes and documents and records • Gap Analysis ISO 22222/BS 9222/FSA requirements • Establish recommendations • Establish resources, methodology and timeframe • Document a holistic Practice Management System • Review with client and approve fi l d ft R i ith li t d final draft • Communicate and embed within practice • Conduct internal audit to demonstrate compliance prior to assessment • Confirm assessment Raising the standards ..
  33. 33. Any Questions..? Raising the standards…

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