21/11/2007 - Exams Are Not Enough by Ken Davy

The Privy Council’s decision in 2006 to grant Chartered Status to Financial Planners was a major milestone on the road to the recognition of financial advice as a profession.  For most advisers however it was simply the “end of the beginning” in their journey to professionalism.

To be worthy of the title of “Professionals” every financial adviser must make a total commitment to being a professional.  Clearly this is far more meaningful than just passing exams, rather it is making the very essence of professionalism, which is ethical behaviour, as natural as breathing.

For a sector which has often seen ever increasing sales as its prime goal this will clearly be challenging for the leadership and direction of some organisations.  Interestingly enough however the drive for greater professionalism has long been led by the grass roots of the financial advice fraternity.  Indeed, the battle for professionalism was started over thirty years ago by advisers themselves who were determined to rise above the “make a sale at any price” culture which pervaded so many companies.

I am therefore confident that the vast majority of today’s advisers will welcome the opportunity to embrace, and be seen to embrace, the ethics and conduct that is the mark of any true professional.  To achieve this I believe it will be an essential first step that every financial adviser joins their professional body.  The idea that a lawyer could practice without being a member of the Law Society is unthinkable.  My hope and expectation is that it will soon be equally unthinkable that a financial adviser could practice without having joined the appropriate professional body.

In doing this every adviser would be required to sign up to their professional bodies Code of Ethics and Conduct.  This would also include agreeing to be bound by its disciplinary powers which would, in the final analysis, include expulsion from the profession.

This public commitment to adopting and maintaining professional standards will for many of today’s advisers be simply reinforcing the high standards they already strive to deliver.  For others it will be a welcome stiffening of their resolve to build their careers in the UK’s newest profession.  For the very few advisers who may not be prepared to accept these standards or make these commitments to professionalism we will have to accept that the profession of financial adviser is not for them.

Whilst behaving professionally must become as natural as breathing it also needs to be based on a solid foundation of knowledge.  Though examinations form an important part of this foundation it is critically important that all advisers reinforce their ongoing knowledge and experience by devoting time and effort throughout their career to Continuing Professional Development.

I have no doubt that the steps outlined above along with each adviser’s personal commitment to excellence and professionalism will be of enormous benefit consumers and advisers alike.  As a result I am equally confident that financial advisers will be increasingly recognised as the professionals so many of them already are.

Ken Davy HON. FCII

Chairman

Simply Biz PLC