In the first survey of politicians following the launch of the FSA’s Retail Distribution Review (RDR), it was revealed that over 90% of MPs believe that proposed top tier of financial services advisers should be qualified to Chartered status, similar to other professions such as surveyors, accountants or engineers.
The results of this survey commissioned by the Chartered Insurance Institute (CII) correspond with the findings of previous research conducted by the Institute with its members in March this year. Ninety-two per cent of MPs surveyed said they think financial advisers should be qualified to bring parity with other Chartered professions, endorsing the recommendations of the FSA that the sector needs to improve its level of professionalism and standards.
David Thomson, the CII’s director of policy and public affairs, said: “These findings reflect the external perception of the profession among politicians and the public at large. The fact that MPs support improved professionalism as part of the RDR solution is a timely warning that we need to make progress towards higher standards. As the professional body leading the debate to raise professional standards, the CII is committed to ensuring the RDR reforms will help to enhance the reputation of the industry. The survey of MPs shows the challenge ahead.”
The survey of MPs rated doctors were as the most professional, with 74% of MPs stating that they perceived them as ‘very good’ or ‘good’, compared to 59% for architects, 48% for accountants and 45% for lawyers whilst financial advisors only polled 14% for the two categories. Insurance practitioners polled 18%. (See table in footnotes).
A separate CII Deloitte and Touche report entitled ‘Professionalism and Reputation’, published in May, advocated the concept of tiered professionalism, whereby practitioners have to prove professional standards and qualification appropriate to the tier of service they are providing. This set out recommendations to improve professional standards.
The report echoed the conclusions of the BPRI MP research in the comparative research with other professions, showing the gap between financial services and other professions. The March survey of CII members showed that 90% of respondents thought the future prosperity of the profession depended on achieving parity with other professions.
