ISO 22222 Setting the record straight

Dear Wizard Learner

In this article Michelle Hoskin (contact details at the end of the article) of Standards International provides details of the ISO 22222 standard. We have also amended our "Overview of Qualifications" document in our free dowlnloads section to mention that ISO 22222 obtained with an UKAS accredited certification body provides advisers with an exemption to AF5.

ISO 22222 – Setting the record straight
The need to demonstrate professionalism within financial services has never been greater. Amidst the current plethora of qualifications and achievements, quietly sits BS ISO 22222:2005, the new international professional standard for personal financial planners.

What are ISO standards?
ISO standards are more commonly known within the general business market, ISO standards such as ISO 9001 the quality management standard and ISO 27001 the information security standard may be familiar to you but the fact is that ISO standards have been around for years and are here to stay.

ISO is an acronym for the International Standards Organisation. The organisation is responsible for the creation of international standards that allow an individual or firm to achieve the following:

* Consistently provide a product or service that meets customer requirements in line with any regulatory, statutory and contractual requirements.

* Deliver customer satisfaction through effective processes of continual improvement for the prevention of errors and mistakes.

Why have national and international standards?
For over 100 years, industries have recognised the value of having in place common standards of quality which customers can trust. Typically British (BS), European (EN) and international standards have applied to manufactured goods, often alongside the Kitemark (or CE mark) which is recognised by consumers as a sign of quality.

Standards help to:-
* Identify and meet the needs and expectations of its customers and stakeholders whilst achieving and maintaining a competitive advantage.
* Achieve, maintain and improve overall performance and capabilities in all aspects of the business processes.

ISO standards are not just created just for the sake of it, they are demand led and created by leading professional bodies and industry experts across the globe.

Why have an ISO standard for financial planners?
Pressure to demonstrate professionalism within financial services has never been greater.

Demand is not only coming from clients, but also from professional associations and the regulator and that was why the idea of creating an international standard for financial planning was raised.

Once the concept was agreed, invitations were issued, and in response the BSI (British Standard Institute) turned to the FSA for guidance.

It was agreed that David Jackman (then Head of Industry Training at the FSA) would chair a BSI technical committee and all major professional, industry and consumer bodies were asked to join the group.

The committee was formed and consisted of representatives from the following:

FSA, BSI, IFS, FSSC, ABI, the consumer group Which, IFP the CII/PFS and UKSIF.

Collectively they agreed to support the development of an international standard for financial planners and in March 2006 ISO 22222 was launched.

Although the UK played a major part in its development, our UK representatives were supported by similar committees from over seventeen different countries around the world. Their objective was clear from the outset, they set out that on the basis that ISO 22222 be appropriately understood, implemented, awarded and monitored it would allow financial planning professionals to reach over and above the current regulatory requirements.

ISO 22222 sets requirements for personal financial planners; it codifies best practice in financial planning across the world and will help to increase consumer confidence.

It has been reported that one of the major issues concerning consumers when seeking financial advice is the uncertainty over whether they can trust their financial advisers. Add to this the vast amount of financial planners for clients to choose from, no wonder they are confused about where to turn to for the right financial planning advice.

ISO 22222 plays a major role in addressing this by providing an internationally agreed benchmark which not only enables consumers to identify financial planners who possess the right knowledge, skills, ethics and experience to deliver their desired level of service but also enhances the transparency and efficiency of the process for personal financial planning.

Which? played a crucial role in creating the ISO standard and are said to support higher standards for financial advisers but recognise that the current wide-ranging set of qualifications available to financial advisers can be confusing for those outside the industry.

It is for this reason that they have long supported the notion of one over-arching standard for financial advisers and why they contributed towards the work of the ISO Committee.

In addition to this, a survey was carried out on the general public and showed that 75% would have more confidence in a financial adviser and their practice if the financial adviser had achieved a "quality mark" such as the ISO award.

Andrew Reeves, director of The Investment Coach Limited, was the UK’s first financial planner to be certified to ISO 22222 by Standards International and after reaching the point in his professional life where he needed to turn his focus on the creation and development of efficient business processes the ISO certification scheme was the ideal solution. The net result for the consumer is a more efficient and transparent process in receiving holistic financial planning advice.

Robin Keyte, director of Towers of Taunton represented UKSIF on the BSI technical committee and is thrilled to join Andrew as one of first to achieve the ISO award, he commented that the ISO 22222 certification process was the best available overall assessment of knowledge, competency and fair customer treatment.

FURTHER INFORMATION
For further information on ISO 22222 please contact Michelle Hoskin on the details below.

Telephone 01462 790 894
Email enquiries@standardsinternational.co.uk
Website www.standardsinternational.co.uk


Kind regards

Wizard Learning
www.wizardlearning.com

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Contact us if you have any comments or questions.

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