Latest News › PARN research on professional standards informs FSA consultation paper

PARN’s research on professional standards has informed a Financial Services Authority (FSA) consultation paper, ‘Delivering the Retail Distribution Review: Professionalism; Corporate pensions; and Applicability of RDR proposals to pure protection advice’, published today on the FSA’s website.

The PARN report, ‘Professional Standards Bodies: Standards, Levels of Compliance and Measuring Success’, and the FSA consultation paper can be accessed via http://www.fsa.gov.uk/pages/Library/Policy/CP/2009/09_31.shtml.

The consultation document references PARN’s report several times, but there are two instances we believe are particularly pertinent to the professional body sector:

The PARN research and our own discussions with other professions suggest that a clear benefit of membership of a professional body is the access to expert help and guidance. It is likely that, due to the safe harbour we would offer regulated firms (see paragraph 2.41) through these proposals, some employers may encourage their investment advisers to become members of a professional body. (p27)

In particular, the PARN research has considered which features of professional bodies bring benefits to clients of the profession. These include a greater focus on maintaining levels of competence through CPD (not just initial examinations) and positive support for ethical behaviours – for example, making a code of ethics clear to members of the profession and of the public. The PARN research enabled us to focus on key areas for development of the governance arrangements, set out in Chapter 2 of this Section 2. (p16)

This is encouraging and will help build momentum behind the theme of “The Professions Fight Back” which PARN alluded to at The Future of the Professions conference, and hope to further stimulate throughout 2010, particularly through the professions portal, TotalProfessions.com.

The FSA is asking for responses to the consultation paper, and we encourage all professional bodies to respond; in particular, to Section 2 on professionalism. The deadline for receipt of comments is 16 March 2010. If you do respond to the FSA consultation, we’d be pleased to know your views. Feel free to email PARN Director Andy Friedman at andy@parnglobal.com.

Posted on 16 Dec 2009