The Retail Distribution Review May 2008
Ruth Martin
Managing-Director, SII
www.sii.org.uk
SII and the RDR
Affects all three core areas of SII:
• Attaining Competence• Maintaining Competence• Promoting Trust
The RDRThe FSA’s challenges to the industry in the Feedback Statement of 29th April 2008
• To develop a framework for common professional standards
• To propose how the new sales service would work, which will benefit consumers
• To product providers to change their remuneration models for advisers.
The RDRThe FSA’s Feedback Statement of 29th April 2008
Our challenge is to the representatives of the whole (retail) industry, and all other stakeholders, to deliver on this apparent consensus for change (the Edinburgh Declaration) that some have issued.….. We are willing to play our part in facilitating discussions and taking whatever other actions that only we are able to progress, but the involvement and cooperation of all relevant industry parties will be vital if the industry is to avoid more direct intervention from us.
““ ““
The RDRThe FSA’s Aims for Professionalism and Standards• Higher Standards of behaviour• Higher level qualifications• Higher Standards of on-going Competence (CPD)• Better segmentation and labelling of services• Greater collaboration between firms, professional
bodies, trade bodies and consumers
SII Model of Competence Developing the Principled Practitioner
Attain CompetenceAssessed by external
qualification
Promote Trust Demonstrated
through adherence toCode of Conduct
With opportunities for self development
Maintain CompetenceDeveloped by range of CPD
Eventsand adopt
SII on-line CPD scheme.
The RDR Attain Competence• Historical links to London Stock Exchange• Retail sectors covered:
– Private Client Wealth Management– Retail Securities and Derivatives– Discretionary Portfolio Management
• Welcome the raising of standards• History of higher level qualifications
– SII Diploma with strong Wealth Management stream– SII Masters in Wealth Management June 2008 –
focussed career pathways – take up has demonstrated real demand
• Threshold qualifications e.g. Cert IM, Investment and Risk
The RDRMaintain Competence
The CPD Challenge
• What additional CPD might be needed?
• Compulsory CPD for Retail practitioners?
• Strong recommendation to join appropriate professional body
The RDRPromote Trust
• Practice Certificate
• ‘e’ learning ethics module
• Membership and Code of Conduct
The RDR Under the “Edinburgh Declaration” a Potential Professional Standards Board might, be responsible for:
• Better labelling (the “alphabet soup”) • Introduction of higher-level qualifications (with
transitional arrangements)• Making industry-wide Code of Ethics• Setting broad CPD standards • Developing Practice Certificates linked to all
aspects of professionalism (the “Principled Practitioner”)
• Support and active involvement by of regulators, consumers and statutory and trade bodies
• Information sharing and discipline.
The RDR
Your Comments on the FSA’s and the SII’s
professionalism proposals
The Retail Distribution Review May 2008
Ruth Martin
Managing-Director, SII
www.sii.org.uk