Press Release

PROFESSIONAL BODIES AGREE PRINCIPLES ON RAISING STANDARDS WITHIN FINANCIAL SERVICES “THE EDINBURGH DECLARATION”

4 April 2008

The four leading professional bodies representing retail financial services including banking, insurance and investment sectors have jointly announced a Statement of Principles for professionalism in advance of the FSA’s interim statement on the retail distribution review.

The ‘Edinburgh Declaration’ is supported by The Chartered Insurance Institute (CII), the Institute of Financial Planning (IFP), the Chartered Institute of Bankers in Scotland (CIOBS), and the Securities & Investment Institute (SII).

The Declaration states their commitment to develop and build an industry consensus around raising standards and professionalism.  It sets out a statement of principles covering the following areas:

• Simplifying the “alphabet soup” of qualifications and designations; to improve the public’s understanding and confidence in financial qualifications.
• Improving professional standards and ethics including creating a single independent professional standards board, to create, oversee and develop high standards ensuring consistency.
• Developing a higher qualification benchmark and a transition process to achieve this in an agreed timeframe.

Each of the professional bodies will use these Principles as the basis for fleshing out the work needed to develop detailed proposals with the FSA and the industry in the months ahead.

Dr Alexander Scott, CII Chief Executive said: “As the world’s largest professional body for insurance and financial services practitioners with 92,000 members in 150 countries, the Chartered Insurance Institute has been driving the momentum towards higher standards for professionalism through education, research, training and continuing professional development globally.  This initiative today is about creating broad principles underpinning our activities.  We welcome the other bodies responding to our call to bring about a step change that is visible to consumers and enhances trust and confidence in the profession.”

Simon Thompson, CIOBS Chief Executive said: “Higher standards of professionalism protect the public interest.  As a professional body, the CIOBS has always sought to improve ethical and professional standards, and we are delighted to be part of this industry-led initiative to improve trust and confidence in the financial services profession.”

Nick Cann, IFP Chief Executive Officer said: “The IFP has been involved with raising international standards in Financial Planning since 1995. As a member of the Financial Planning Standards Board it has been at the heart of and influential with changes that have brought about a standard setting body that oversees the development of Financial Planning standards around the world. It can therefore bring this tremendous experience to developing a similar body to govern financial services professionals in the UK. This has to help ultimately deliver a better consumer experience”

Simon Culhane, SII Chief Executive Officer said: “The SII is delighted to be part of this initiative to raise consumers’ trust in the financial services industry as a whole. The SII has been a strong advocate of high personal integrity and continuing professional development for practitioners and welcomes the opportunity to work with its counterparts in other sectors to bring about a step change in industry wide standards.”