Another stripe for our business: Why all Bluefin advisers must be ISO 22222

Bluefin Wealth Management’s Patrick Murphy explains why the firm requires all its financial planners to achieve the ISO 22222 standard.

Times are changing. Consumers need to have the confidence that their financial planner has not only got the right level of knowledge to do the job but also has the right skills, ethical values and experience to deliver their desired level of service.

At this current time there are two main areas driving the direction of the financial services market place. These are: Treating Customers Fairly (TCF) and the Retail Distribution Review (RDR).

Financial planners are striving to raise their professional standing as they appreciate that the application of knowledge gained while doing the job is as important, if not more so, than the initial knowledge needed to do the job in the first place.

Speaking at the Financial Services Distribution Summit on 4 September 2007 Amanda Bowe, head of the RDR team, said that the RDR paper:

“...Makes it clear that we are talking about higher professional standards here, not just higher qualifications. For example, we have focused on chartered or certified because they are the standards familiar to many in the market. It might be that the ISO 22222 could provide an alternative or even complementary standard... We are interested in a range of things that constitute professionalism including ethics, competence, experience, and so on. Identifying how best to achieve this balance is one area where the industry could usefully take the lead.”

It is against this backdrop that we decided, 14 months ago, to prepare for these forthcoming changes by requiring all of our planners to go through the ISO 22222 certification process.

What is ISO 22222?

ISO 22222 is a professional framework specifically designed for financial planners to allow them to demonstrate continuous improvement through third-party certification. ISO 22222 is not just about knowledge; it is so much more than that.

By achieving the ISO standard it allows financial planners to demonstrate a commitment of adherence to an internationally recognised benchmark, which has been founded on ethical behaviour and professionalism.

At the heart of the ISO standard are the fundamental six steps of the financial planning process:

1. Establishing and defining the client-planner relationship. The financial planner should clearly explain or document the services to be provided to the client and define both his and their responsibilities. The planner should explain fully how he will be paid and by whom.

2. Gathering client data, including goals. The financial planner should ask for information about the client’s financial situation. The client and the planner should mutually define the client’s personal and financial goals, understand the time frame for results and discuss how the client feels about risk. The financial planner should gather all the necessary documents before giving any advice.