CII toughens rules for Chartered firms

Laura Miller
clock

The standards advice firms must meet to call themselves Chartered are set to get much tougher, as the Chartered Insurance Institute (CII) embarks on a radical overhaul of the label.

By 2020 at least half of the advisers within Chartered firms must be chartered individuals, a significant leap from current requirements.

At the moment, the CII requires chartered firms to have at least one Chartered financial planner on its board, and for 90% of customer-facing staff to be members of the CII or Personal Finance Society.

The rules will change in two stages; from July 2017, 25% of firms' advisers must be chartered for the whole business to use the label, before the figure doubles to 50% by January 2020.

There is a significant commercial benefit

Steve Jenkins, director of financial services and insurance markets at the CII, said the move followed demand from consumers.

"[The changes represent] what customers expect of Chartered firms.

"They don't expect all advisers in a firm to be Chartered, but they expect to be able to access one easily."

Smaller Chartered firms are likely to be already meeting the new requirements, Jenkins said.

The CII will be working with larger firms who may need to do more to meet the overhauled criteria, he said.

Jenkins said to those advisers critical of the move from a qualifications body to mandate more and costly qualifications to achieve the same firm status, the trade-off is a better bottom line for firms.

"There is a significant commercial benefit.

"We asked customers to describe what they thought was meant by Chartered. They said, ‘special, premium, top-end'. People attach value to it. They will pay for it.

"It also helps with professional connections because there is a parity of esteem."

The move is part of a greater emphasis from the CII on creating a customer-focused culture in the conduct of Chartered firms and individuals, Jenkins said.

More on International PMI

Vitality to relaunch Britain's Healthiest Workplace survey

Vitality to relaunch Britain's Healthiest Workplace survey

In collaboration with Aon

John Brazier
clock 14 January 2022 • 1 min read
COVER Wellbeing 360 Summit now open for registration

COVER Wellbeing 360 Summit now open for registration

Virtual conference on 24 March

COVER
clock 13 January 2022 • 2 min read
Gen Z placing a priority on ethical employers

Gen Z placing a priority on ethical employers

ESG commitments a priority for younger workers

John Brazier
clock 13 January 2022 • 2 min read

Highlights

The Rising Stars of Protection: Lauren Hygate

The Rising Stars of Protection: Lauren Hygate

“It all comes back to those real life stories that get shared”

John Brazier
clock 06 January 2022 • 7 min read
Blue Monday and beyond: The whole wellbeing proposition

Blue Monday and beyond: The whole wellbeing proposition

Latest COVER webinar

COVER
clock 04 January 2022 • 1 min read
The Top 20 Stories on COVER in 2021

The Top 20 Stories on COVER in 2021

The most-read news stories of last year

John Brazier
clock 04 January 2022 • 6 min read