This was the presentation that I gave at the TC 68 workshop in Amsterdam on Friday 13th May! The world is recognising the importance of quality standards in Financial Services!

1. Standards International Ltd
Amsterdam 13th May 2011
Raising the standards with ISO 22222

2. Presentation Overview
• Standards International
• ISO 22222 - Our Scheme
• ISO 22222 – The Benefits
• The UK – Our Challenges
• The Key Players – Our Responsibilities
• So what next?
Raising the standards…

3. Who we are
• Established in June 2007 (Pilot Scheme launched in April 2006)
• Leaders in the financial services certification
• UKAS Accredited
• We work with the profession’s leading advisers
• Pioneering Best Practice – added value
• Independent and privately owned - Unique Offering
• Work done so far:
o Awareness Campaigns - Professional and Consumer
o Articles, Features, Presentations and The Book
o Partnerships - Profession Wide
o The Approved Associate Programme (AAC)
o Value Benefits Guarantee
Raising the standards…

4. The Certification Process

5. ISO 22222 – The Key Elements
1. Operational, financial and security management
2. The Six Steps of the Financial Planning Process
3. Ethical Behaviour and Ethical Financial Planning
4. Information Security, Client Confidentiality and Data Protection
5. Risk Management and Business Continuity
6. Continual Improvement
Raising the standards…

6. Adviser Quotes
“Going through the ISO process has enabled us to look at our business in
way never before possible. The net result for
the consumer is a more efficient and transparent process
in receiving holistic financial planning advice”
Andrew Reeves, The Investment Coach Limited
“ISO 22222 certification process was the best available overall
assessment of knowledge, competency and fair customer
treatment”
Robin Keyte, Towers of Taunton
‘ISO 22222 should be the standard that every financial planner should strive to
achieve, it brings a focus on the financial plan, business efficiency processes and
most importantly the client in a practical and technical sense. This must be the
standard for all professional financial planners with RDR looming!”
Paul Richardson, Concept Financial Planning

7. And a few more...!
“this [ISO 22222]is exactly what we were looking for to get our
business running as professionally as we possibly can”
Paul Steel, Estate Matters
“it [the ISO 22222 assessment]made you reflect on the issues you
don’t always think about on a day to day basis, and made you take
time out to look at these and realise their importance in running the
business/advice process”
John Holt, IFA Ltd
“The award, while requiring a sufficient level of qualification from
the designated individual, then calls upon the members of the rest
of the company to make their equally valid contribution”
Peter Oddey, Spectrum Financial Planning
Raising the standards…

8. 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, better public
awareness and public image
• Improved sales and marketing opportunities
• Reduced risk = potential reduced insurance costs
• Supports regulatory requirements
• The acquisition of a symbol representing
the internationally recognised
quality standard
• Reduction in ongoing certification costs - Referral Programme

9. Consumer Benefits
• Receive a value added service
• Assurance of quality through independent third-party
certification
• Assurance that regulatory requirements are being adhered to and
monitored
• Evidence that continual improvement and their needs are core to
the business
• Confidence in the sustainability of the business
• Confidence that the adviser has the right level of knowledge and
skills to deliver their desired level of service
Raising the standards…

10. The UK – Our Challenges
• Bad Reputation – Retail and Wholesale Financial Services
• Low level qualification requirements
• Sales focused
• Unfair/commission focused charging structures
• Product and not “client focused”
• Wrong model – technician not business!
• Consumer Confusion
Raising the standards…

11. The Key Players – Our Responsibilities
• Financial Services Authority (FSA)
o Raising Qualifications
o Consumer Agreed Remuneration
o Defined Advice Models
o Treating Customer Fairly (TCF) – 6 Drivers
o Ethics – Statement of Professional Standing
o Support for Professional Standards – ISO 22222 & BS8453
• Government – (UK and European)
o Financial Support for ISO 22222 Training and development
Raising the standards…

12. The Retail Distribution Review (RDR)
• Four key documents to review:
o Consultation Paper – CP09/31 Delivering the Retail Distribution
Review (December 2009).
o Policy Statement # 1 – 10/6 Distribution of retail investments
(March 2010).
Delivering the RDR: Professionalism CP10/14 (June 2010).
Distribution of retail investments: Delivering the RDR
professionalism (January 2011).
• Key Objective:
o Forcing best business principles to professionals who primarily are
seen as doing a job.
Raising the standards…

13. Key Themes - Proposals
1. Improve the clarity with which firms describe their services to
clients.
2. Address the potential for adviser remuneration to distort
consumer outcomes; and
3. Increase the professional standard of advice.
Raising the standards…

14. Key Themes - Proposals
1. Improve the clarity with which firms describe their services to
clients.
• Description of advice • Clarity of - Scope of service,
services (Independent or service level agreements,
restricted). brochures, marketing, website,
personal profile, company
letters and literature.
• Plus: client authorisation.
Raising the standards…

15. Key Themes - Proposals
2. Address the potential for adviser remuneration to distort
consumer outcomes.
• Introduction of Adviser • Undervaluing knowledge, wisdom
Charging. and experience. Value of services
delivered, what is charged for and
when, clarity of message and
literature. Ongoing services!
• Setting your own charging
• How calculated, fair!
tariffs.
• Individual adviser • Targets, KPIs (quality) and pay
remuneration. structure.

16. Key Themes - Proposals
3. Increase the professional standards of advice.
• More focus on setting, • In-depth assessment methods,
monitoring and enforcing scope of service understood,
standards of competence competence and CPD activity
and ethical behavior. aligned.
• Need to “prove” initial • Assessment report and
and ongoing feedback, independently
competence. assessed annually!
Raising the standards…

17. Key Themes – Proposals cont…
3. Increase the professional standards of advice.
• Increase in quality and • How selected, recorded and
control over CPD activity. implemented.
• Increase level of • Already a requirement of
qualification to QCF eligibility.
Level 4.
• Visibly adhere to the • Ethical principles assessed
required ethical and evidenced.
standards.
Raising the standards…

18. ISO 22222 - Key Differentiators
1. All about Best Practice – not just about regulatory adherence.
2. The rules coming out now were already introduced in 2000 with
the ISO.
3. Supports your existing compliance provision.
4. Identifies opportunities for improvement – good business
principles (IS, BC, CI).
5. Not limited to UK rules – internationally recognised and
respected.
Raising the standards…

19. The Key Players – Our Responsibilities
• Standards International (SI)
o Scheme Enhancements
o Affiliates and Partners
o Client Charter
o Workshops for students
o Educational Forums and the UK’s 1st Quality Conference
o International Promotion
o And much more!
Raising the standards…

20. The Key Players – Our Responsibilities
• British Standards Institute (BSI)
o ISO 22222 - Developments
o Development of BS 8453
o Development of a firm standard (ISO 22222 compulsory)
• Chartered Quality Institute (CQI)
o Standards Development
o Raising the recognition of Quality!
Raising the standards…

21. The Key Players – Our Responsibilities
• The Firms and Planners
o Up skilling
o Defining their service proposition
o Client Segmentation
o Client Centric
o Professional Connections
o Re defining their “Business Model”
o 3rd Party validation – through ISO 22222 certification
Raising the standards…

22. So What Next?
• Standards International (SI)
o Continue to raise the profile of ISO 22222 with the market
and government
o Committee and Development Forum
o “Thought leaders” in quality standards
o Expand our scope of certification
o Add value at every opportunity
o Professional body status
o And much more!
Raising the standards…

23. Any Questions..?
For further information please contact me or a
member of my team:
Tel: 0044 (0)1462 790894
Email: enquiries@standardsinternational.co.uk
Web: www.standardsinternational.co.uk
Twitter: http://twitter.com/SIISO22222
LinkedIn: http://uk.linkedin.com/in/ISO22222expert
Raising the standards…