Getting Professional about Ethics

Summary

As part of its role of setting standards as a professional body, the CII are undertaking a fundamental ‘root and branch’ review of its ethical practices.

About the Ethics Project

As recent events with the credit crunch have indicated to both the general public and practitioners at all levels, the topic of ethics and ethical standards is of great significance in both the regulatory and professional context. What is ethics? Is it possible to define ethical behaviour so that everyone can measure their own actions against an objective standard? And if ethical standards can be monitored, what sanctions should apply to those who transgress or fail to attain the required level?

What the CII is doing?

As the world’s largest professional body for financial services, the CII must set the example by following the best possible practices in all aspects of its business. It needs to be at the forefront of standards, both within the organisation and in its interaction with members and other stakeholders.

Accordingly, the CII have launched a fundamental review of its existing capacity to support best practice in ethics and integrity. It is examining all its practices against the best external benchmarks of ethical standards. Practices such as:

• structures
• communications tools
• continuous professional development (CPD)
• how ethics is included in exams and assessment
• development of standards
• member communication and engagement; and
• enforcement and discipline.

To provide a suitably independent and external perspective that is critical for a project like this, the PFS and CII has commissioned Open Road, a firm of experienced external consultants in this field, to lead the project and report directly to the Policy & Public Affairs team. This review will support the current revision and updating of the CII’s Code of Conduct which is also being undertaken.

Delivering a step-change in professionalism across the industry means it makes sense to ensure we have the best processes and up-to-date thinking on ethical conduct within the CII itself.

Consulting internal processes

Following approval by the CII Professional Standards Board in May, Open Road has met with various senior staff members as well as selected members of the Board and other corporate governance committees through the spring and summer.

Best practices: views from outside

The project will also be meeting with various external organisations to discuss ethics and professionalism issues from their perspective, and get to grips with any best practices they developed. Such stakeholders include the Financial Services Authority as well as other professional bodies such as the Securities & Investments Institute, the Institute of Chartered Accountants in England & Wales, the Royal College of Physicians, and the Law Society.

Consulting members

The CII Group also consulted members. It conducted focus group meetings in London and Manchester to gauge the views of a small group of randomly-selected members in those regions. Then on 6-20 October, it undertook a detailed quantitative survey of all PFS and CII members.

Next steps

All the findings will be carefully analysed and then a full report will be prepared for the Professional Standards Board in early 2009. We will then publish on this site a briefing on the key findings and recommendations/next steps.