“BS ISO 22222 could help raise consumer confidence when it comes to taking financial advice” Which?
Financial advisers are the single most important channel for distributing financial products in the UK. However, one of the major issues reported by consumers when seeking financial advice is uncertainty over whether they can trust their financial advisers.
BS ISO 22222:2005 has been drawn up with the objective of achieving and promoting consumer confidence by providing an internationally agreed benchmark for a high global standard of personal finance service.
The standard applies to individuals rather than firms , although an individual planner working for a financial planning firm would not be able to achieve the standard without the support of their firm.
BS ISO 22222 specifies requirements and provides a framework that applies to the ethical behaviour, competences and experience of a professional personal financial planner regardless of their employment status.
The standard defines six steps of the personal financial planning process:
Establishing and defining the client and personal financial planner relationship.
Gathering client data and determining goals and expectations.
Analysing and evaluating the client's financial status.
Developing and presenting the financial plan.
Implementing the financial planning recommendations.
Monitoring the financial plan and the financial planning relationship.
“ISO 22222 has a core part to play in raising professional standards in the financial adviser sector.” Chris Cummings, Director General, AIFA
BS ISO 22222 recommends that a planner/ adviser:
is able to deliver, and is competent in, the 6 stages of the financial plannin...