Daily CSR
Daily CSR

Daily CSR
Daily news about corporate social responsibility, ethics and sustainability

CISI Raises The Bar For Financial Advisers In U.K. Under ‘ISO 22222’ Accreditation


Are you an ISO certified financial adviser practicing in the U.K.? Then make sure your clients are investing in an ethical manner.

Dailycsr.com – 15 June 2016 – The U.K. based financial advisers, accredited under the international standard of “ISO 22222” have been tasked with a duty, whereby they have to compulsorily inquire into their clients “ethical investments” stance. Nevertheless, many advisers have been found to falsely claim “this accreditation”.
Moreover, the Chartered Institute of Securities & Investments have also raised query on the same. Therefore, Roger Aitken writes:
“There are a number of specific technical issues surrounding the provision of green and ethical investment advice. Suitably qualified financial advisers with the ISO 22222 standard under their belt can deliver added value for clients who seek green and ethical investment”.
Aitken adds that one key question to ask the customers, under the norm of ISO, developed in the year of 2006, is:
“Do you have any social, ethical, environmental or religious considerations that you would like us to take into account in our work for you?”.
Filip Slipaczek, one of London’s “chartered financial planner” who received the “ISO 22222 certification” for consecutive six years, informs:
“Any misrepresentation of an adviser’s qualification is bordering on fraud. And, the appropriate disciplinary action should be taken by both the chartered body involved and the UK regulator, the Financial Conduct Authority (FCA).”
While, Slipaczek considers “ethical investing” is:
“...no longer within the domain of the lentil-chewing sandal-wearing lefties of the 1960s. Notwithstanding the fact that the IFP has been taken over by the CISI, whose designations have been fraudulently claimed by other advisers, this is far more worrying in my opinion than an inter-profession spat over the term ‘certified financial planner’”.
Apparently, the website called “Unbiased” that allows the U.K public to find out “financial advisers” has been enlisting either “incorrectly” or with “false qualifications”. However, the same appears to be “an industry-wide issue” irrespective of the tool used to locate an adviser. While, another adviser found it unacceptable, if the advisers failed “to update their profiles”, whereby they added:
“You are responsible for all forms of advertising that represents your business. And, if you don’t deal with that, then it begs the question of what other aspects of your business you might be glossing over.”
The website also clarified that it conducts a manual check, whereby determining fifty percent of “50,000 qualifications across 24,000 individuals”. However, some qualifications cannot be checked by any automated means for the FCA also are not in possession of “such data”. A spokeswoman on behalf of the website suggests that a “centralised verification system” need to be put in place.
“This could be one for the industry as a whole to collaborate on, as it would be in everyone’s interests”.