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. 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. 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. 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. Why have an ISO Standard for Financial Planners?
Raising the standards ..
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. 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. 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. 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. 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
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’
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. Risk Management
• Which areas of ISO 22222 are associated with
Risk Management?
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. 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
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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
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. Compliance
• Which areas of the standard are associated with
compliance?
• How does this correlate with what you currently
y y
do?
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)
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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. Continual Improvement
• P D C A – Plan, Do, Check and Act
• Client feedback – positive and negative
• C P D – Embed professionalism
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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. 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. 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. 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. 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
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