BSI consults on new standard for advice firms

The British Standards Institute (BSI) is consulting on a draft of a voluntary service standard for financial advice businesses.

The draft standard, BS 8577 financial advice and planning services, which covers the management of firms as a whole, is available for review by firms and consumer organisations.

Due for publication this summer, adherents to the voluntary benchmark must meet set standards in transparency, integrity, due diligence, confidentiality, accessibility, professionalism, conflicts of interest and competence.

A spokesperson for the BSI said: "The new standard will support the provision of financial advice and planning specifically through adequate resourcing, training, policies and procedures and with guiding principles such as transparency and ethics.

The BSI said BS 8577 complements the International Standards Organisation (ISO) benchmark for personal financial planning, BS ISO 22222, which calls up competencies for personal financial planners, and has been designed to complement regulation such as the retail distribution review (RDR).

BS 8577 will cover the management of an entire firm rather than focusing on individual competence, as BS ISO 22222 does.

Fay Goddard (pictured), chief executive of the Personal Finance Society, said: "This new standard will be a useful benchmark for firms wishing to ensure they provide the right support and business environment for their financial advisers and planners.

"The overarching principles and policies underpin good business practice, which complement the requirements of the RDR."

In March 2011, the BSI launched its BS 8453 compliance framework for financial services firms, which focused specifically on managing the assessment, monitoring and reporting of their compliance.

The draft of BS 8577 is available for comment until the 9th March 2012.