PROFESSIONAL STANDARDS ADVISORY GROUP AGREES FINAL CORE STANDARDS FOR RDR APPROPRIATE EXAMINATIONS

After an intensive consultation period, the Financial Services Skills Council (FSSC) today announced that the Professional Standards Advisory Group have signed off the final version of the core standards for the QCF Level 4 (SCQF level 8) benchmark Appropriate Examinations for retail investment advice.

The FSSC also announces the launch of second phase of consultation for specialist standards for RDR benchmark Appropriate Examinations. Drafts of these specialist standards have been developed over the last 12 weeks by dedicated industry working groups, and have now been published on the FSSC’s website for practitioner feedback by 26 February.

The proposed draft specialist standards for retail investment advisers that have been developed will cover the following:

- Packaged products
- Securities
- Derivatives

The consultation process for these standards includes an online questionnaire, accessible via the FSSC’s website

You have until the 5 February to complete this questionnaire. TCC can help with supporting your Advisers achieve this new standard.

We have introduced a truly innovative programme of support and guidance. Our RDR range of services, designed with you and your organisation’s needs in mind, include:

• Gap analysis to assess an Adviser’s existing knowledge - allowing you to tailor learning to bridge the gap

• Diploma Level industry standard automated tool to give you and your Advisers 24 hour support and online access to a comprehensive RDR learning solution

• On-line MI – making it easy to analyse results and decide on future training needs

• Comprehensive supervisory activity tools – you benefit from more efficient supervisor resource planning and assessment to meet the challenges of RDR

• Distance learning programme (supported by workshops) of study support for the RDR qualifications (CII or ifs Diploma)

• Student friendly exam materials

• Train the Trainer programmes for your internal Training Team

For a free telephone consultation – please call Jill Wade on 0207 645 8808.

Financial Services Skills Council

FSA – SPEECH BY CHAIRMAN

Adair Turner, Chairman, FSA addressed the financial community from the British Embassy in Paris.

Entitled “Responding to the financial crisis: challenging past assumptions”, the speech covered the following three topics:

• A review of the causes of the crisis

• Highlighting that this was not just a crisis of specific institutions or regulations, but of economic theory

• Exploration of two issues where more thinking was needed, specifically (a) the optimal level of capital in the banking system and of leverage across the economy (b) the optimal size of the wholesale financial services industry and in particular of trading activities.


Source: Financial Services Authority

FSA Website

ABI – CHANGES TO CRITICAL ILLNESS INSURANCE DEFINITIONS

Following an extensive consultation, the ABI is planning to rebrand and standardise definitions of the Total Permanent Disability (TPD) benefit in Critical Illness (CI) insurance policies, to improve clarity for consumers.

It is proposed that a new set of standardised definitions will go hand-in-hand with improved education for consumers, financial advisers and sales forces.

The ABI consultation was focused on measures to improve customer understanding of TPD, and therefore to reduce the number of declined claims. The vast majority of consultation respondents, consisting of insurance companies and other key stakeholders, agreed that the work the ABI was doing to improve TPD was worthwhile.

Following a stakeholder workshop to take this important work forward, the ABI has agreed to:

• Propose a set of clear and easy to understand standard definitions that build on the concept of TPD (for example, removing use of the words ‘total permanent disability’ that cause so much confusion for consumers).

• Produce a standard set of educational materials for insurance companies and advisers to use, explaining clearly the changes and what customers can expect from their policies.

• Test the proposed definitions with consumers.

• Consult all stakeholders on the new definitions.

• Issue a new Statement of Best Practice for Critical Illness Cover that will include the new set of definitions.


Source: Association of British Insurers

ABI Website

ABI – REVIEW OF COMBINED CODE

Responding to the Financial Reporting Council’s Review of the Combined Code of Corporate Governance, Peter Montagnon, the ABI’s Director of Investment Affairs, said:

“The ABI has always been a strong supporter of a flexible comply-or-explain approach to corporate governance. The Code has worked well in focusing attention on the value of good governance and raising standards in the UK. The review extends this important tradition.

“The proposed amendments highlight some important issues, including director accountability, board evaluation and risk management. The ABI has expressed reservation about the annual election of Chairmen alone, because this can be too blunt an instrument. We will talk to our members about whether they would prefer annual re-election of all directors, and will respond to the consultation in due course.

“We have for some time seen a role for the FRC around the new ISC Code on the responsibilities of institutional shareholders, but it is important that we get the details right. We will be talking to the FRC about how to achieve this. Conditions that undermine the critical mass of support for the Code must not be imposed on investors.”


Source: Association of British Insurers

ABI Website

ABI – STEADY PROGRESS ON “OPTIONS” INITIATIVE

The ABI has published the latest performance data for the Options pension transfer initiative.

Options – built to speed up the exchange of information and funds between pension and annuity providers – delivered an average transfer time of 11 calendar days in Q3 2009, the same as for Q2 2009.

Options recently won a prestigious Innovation in Business Improvement award from Scottish Financial Enterprise for its developer, leading e-commerce provider Origo. The number of transactions now going through Options for Open Market Option (OMO) and Immediate Vesting Personal Pensions (IVPP) transfers has increased, with 10,879 in Q3 2009.

Fifteen companies are now using Options for OMO and IVPP transfers, with a further eight now live for the pension-to-pension transfer service launched in August. More providers are expected to join both parts in due course.


Source: Association of British Insurers

ABI Website

ABI – THIRD PARTY CLAIMS ASSISTANCE

Responding to the publication by the Financial Services Authority of its review of the practice of insurers contacting directly a person with a potential claim against their policyholder (third party claims assistance), Nick Starling, the ABI’s Director of General Insurance and Health, said:

“If an insurer contacts an injured third party it will be to ensure that they get fair compensation and the best possible rehabilitative care more quickly than through the legal process. In doing so, insurers will ensure that the person is fully aware of their legal rights and options.

“The FSA’s guidance, combined with our own code of practice which we will be publishing shortly will ensure that claimants get the best possible deal as quickly as possible. It will also reduce legal costs, which all customers end up paying for through higher premiums”


Source: Association of British Insurers

ABI Website

ABI – LAUNCHES ACTUARIAL GUIDANCE

The ABI has launched guidance for life insurers on when internal actuarial advice should be subject to external review. It follows a public consultation earlier this year. Its origins lie in the Morris review and subsequent work by the actuarial profession and the Financial Reporting Council.

The guidance, External Reviews of Internal Actuarial Advice: Best Practice for Life Insurers, recommends that boards consider seeking an external review when actuarial advice is critical to a decision that has significant implications for the company.

This could include where there are major changes to the running of life insurance policies, the regulatory environment and established industry and actuarial practice.

The ABI guidance is not prescriptive and recognises that external advice may often be unnecessary.

Peter Vipond, the ABI’s Director of Financial Regulation and Taxation, said:

“This guidance is designed to assist boards in making informed decisions based on sound advice. We urge boards to assess each case individually, and to consider the advantages and disadvantages an external review would have.”


Do you need guidance to make the right informed decisions based on sound advice? The Consulting Consortium can help you. Call us on 020 7645 8808.


Source: Association of British Insurers

ABI Website

DEPARTMENT FOR BUSINESS INNOVATION AND SKILLS – NEW CHAIR OF FRC

Lord Mandelson, Secretary of State for Business, Innovation and Skills, has announced that Baroness Sarah Hogg has been selected as the new Chair of the Financial Reporting Council (FRC).

The long term strength of the UK’s economy relies on high standards of corporate governance and reporting by UK companies. The FRC has a vital role to play in maintaining confidence, following this challenging period for the global and national economy.

Baroness Hogg has served as Deputy Chair of the FRC since 2007 and has considerable corporate experience from serving on the boards of several UK companies.


Source: Department for Business Innovation & Skills

BIS Website