Chartered Financial Planners
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A new era for financial advice
In 2007 the financial advice sector enters a new era of professionalism thanks to the arrival of Chartered status for firms
Professional financial advice firms play a pivotal role in maintaining and enhancing the wealth of individuals and businesses in the UK.
Such firms work in a complex and demanding market. They have long been subject to exacting statutory regulation, and the regulatory landscape within which they operate continues to evolve.
The Financial Services Authority’s Retail Distribution Review is only the latest in a long line of market assessments to explore the need for yet further changes to the rules governing the provision of financial advice.
One of the constants which has helped ensure the survival of financial advice providers is their individual and collective pursuit of the highest professional standards. Indeed, the FSA recognises the importance of professionalism as a promoter of compliance.
Professional firms seek knowledge and capability and adhere to an objective code of ethical practice. Many look to improve their overall performance by encouraging staff to enhance their own skills, with Personal Finance Society/CII membership and CII qualifications at the heart of their learning activity and continuing professional development.
The pinnacle of individual achievement is the award of Chartered Financial Planner status, which is conferred by the CII and available to eligible Personal Finance Society members as a result of the Society’s link to the CII. To-date almost 1,000 individual financial advisers have attained this title, with many more currently working towards it.
Now you can distinguish your business from the crowd (and so will your customers)
To support leading firms in the financial advice sector, and to recognise their adherence to the highest standards of professional practice, the CII has secured agreement from the Privy Council to enable firms to call themselves ‘Chartered Financial Planners’.
This corporate Chartered status is of major significance. It will reinforce the importance of professionalism in a fast-moving and competitive market. It will also help place firms of advisers on a par with other professional practices, such as accountants and solicitors.
Corporate Chartered status will be recognised by consumers (both individuals and businesses) as a mark of professionalism.
It will carry weight with other professional organisations and distinguish firms from their competitors and peers.
It will also help firms attract and retain the best staff. Talented professionals want to work for ambitious, principled organisations, and Corporate Chartered status is a clear indicator of the professional standing of a potential employer.
Corporate Chartered status is sure to have resonance with the Regulator, signposting professional achievement and commitment to high standards of practice. And as levels of professionalism rise across the sector, it should encourage movement towards “lighter touch”, principles-based regulation, with all that entails in terms of a less onerous compliance burden.
The Chartered titles awarded by the CII are steeped in history but they are just as relevant in today’s market because genuine professionalism has never been so valued – or necessary. They remain the “gold standard” of excellence and integrity.
How it works in practice
Financial advice firms which meet the criteria laid down for Chartered status will, once approved, be eligible to use the title ‘Chartered Financial Planners’ in their business dealings
The eligibility criterion defines suitable organisations as those “who are carrying on business as providers of financial planning advice or related activities”.
They will be authorised to:
- Use the term ‘Chartered Financial Planners’ on their business stationery, promotional materials and company signage
- Describe themselves in these terms in any communications that they produce
- Display a certificate at each of their branches highlighting their Chartered status
Full guidelines relating to usage can be downloaded here, or from the downloads section at the bottom of the page. Note: Electronic marque image files will be supplied by CII Customer Service on successful application.
Chartered firms will be listed in an online ‘Corporate Chartered Title Directory’, to be launched later in 2008. This will list all firms holding the Chartered Financial Planners title together with full contact details and a description of the typical classes of business dealt with. It will be available to the public, and will be viewed by individuals and businesses alike.
To mark the arrival of Corporate Chartered Financial Planners status, the CII will be undertaking an extensive ongoing communication campaign. We will promote the value of Corporate Chartered status via the national press and other media channels, informing all types of consumer of its introduction and relevance.
This will educate buyers on the standards of practice to which Chartered firms adhere, as a factor to consider when choosing their financial adviser.
Applying for Corporate Chartered status
To become a Chartered title-holder, three principal criteria must be met:
- A minimum of 50% of Executive Directors or Partners need to be Chartered title-holders in their own right.
The CII will recognise Chartered titles from other awarding bodies as comparable to the CII’s individual Chartered Financial Planner title providing:
– the title held is directly relevant to the individual’s principal area of work. For example the ICAEW Chartered Accountant title being held by the Finance Director; and
– the awarding Chartered body concerned has a Code of Conduct (or Code of Ethics and Conduct) comparable to that of CII. A listing of the Chartered titles which the CII will automatically recognise as equivalent can be found here – other organisations will be considered on application; and
– at least one Executive Director/Partner must personally hold the CII Chartered Financial Planner title.
- One of the firm’s Executive Directors or Partners (who, as an individual, holds the Chartered Financial Planner title), must take on the role of Responsible Member. This person will have responsibility for submitting the firm’s application for acceptance and annual renewal.
- A minimum of 90% of customer-facing staff (for guidance on this requirement please refer to the application form and in particular point ‘2. Customer-Facing Staff’ within the ‘Terms and conditions relating to entry’ section) must be members of the Personal Finance Society/CII.
These requirements have been put in place to help ensure that standards of professionalism are present throughout the entire firm. Membership of the CII brings with it a requirement to adhere to its Code of Ethics and Conduct. Qualified members of the CII are also obliged to comply with continuing professional development requirements, which ensures their knowledge and skill-set remains up to date.
To apply firms need to complete the Application Form available to download here, or in the downloads section at the bottom of the page.
All requested information must be provided, including:
- copy of previous year’s final audited accounts
- listing of Executive Directors or Partners including an outline of their principal responsibilities and Chartered qualifications held
- listing of ‘customer-facing-staff’ and corresponding CII membership status
It is important to note that the Chartered title scheme is underpinned by disciplinary procedures to ensure that agreed standards are met. The CII has the right to withdraw Chartered status from any firm found to be in breach of its regulations.
Note: Terms and conditions relating to the Chartered Financial Planners title can be found on the Application Form.
The cost of becoming Chartered
The following fee structure has been devised to reflect the investment and commitment of applying firms, now or previously, in supporting staff through qualifications and in being members of the Personal Finance Society/CII.
| Number of staff employed |
Annual Fee |
| Up to 10 | £500 |
| 11 – 50 | £1,000 |
| 51 – 250 | £1,500 |
| 250+ | £2,000 |
Fees are payable annually, to be submitted together with the required annual returns. Forms will be automatically sent in advance of the anniversary date.
Renewal
The Responsible Member will be sent declaration forms requiring completion and return to the CII.
These will include:
- The make-up of the Executive Directorate/Partnership including Chartered titles held
- A listing of client-facing staff and confirmation as to their membership status
- Self-certification on behalf of all members confirming compliance with the Code of Ethics and Conduct and Continuing Professional Development requirements
- Copy of the previous year’s final audited accounts
FAQs
We have also produced a series of FAQs to address common issues relating to Corporate Chartered titles. Available here, these will be regularly updated in line with feedback received.
Communicating Chartered status
To support Chartered firms in communicating their newly acquired status the CII is developing a suite of communications. These can be used or adapted by firms to communicate to their stakeholders. The first of these can be found below, comprising communications to staff and to customers and an example press release. Further guidance will be added over the coming weeks and months, as appropriate.
Further information
To discuss the Chartered Financial Planners title please contact the CII at:
Customer Service
42-48 High Road
South Woodford
London E18 2JP
tel: +44 (0)20 8989 8464
fax: +44 (0)20 8530 3052
email: customer.serv@cii.co.uk
