Your IndustryOct 18 2017

Chartered bodies unite to crackdown on bad apples

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      Chartered bodies unite to crackdown on bad apples

      An alliance of three financial services professional bodies has urged firms and regulators to work more closely with them to close “information loopholes” that sees those who break the rules in one part of the industry resurface in another.

      The Chartered Body Alliance has said this will prevent “bad apples” from re-circulating within the industry.

      It is an alliance of the Chartered Institute of Securities and Investments, the Chartered Insurance Institute and the Chartered Banker Institute.

      The comments have been made in the alliance’s response to the Banking Standard Board’s consultation on certification and risk.

      The alliance has said the BSB’s guidance could be improved by advising firms to share the results of certification decisions with the appropriate professional membership body.

      These certification decisions are annual checks which firms have to make of bankers to prove they are fit and proper to perform their job functions.

      The alliance said: “We would argue that we [professional bodies] have a vested interest if there are concerns about the actions of a member, as this can significantly influence the perception of our wider membership and the profession as a whole. 

      “This might lead to a disciplinary review, but, as is intended through the guidance to employers, it provides us with the opportunity to analyse trends or areas of common concern emerging amongst our membership and take steps to address this.”

      The alliance also said the BSB guidance was missing two potential sources of information: whether the individual was in breach of other their membership body’s conduct rules and whether a professional body had decided not to issue a statement of professional standing.

      Simon Culhane, chief executive of the CISI, said: “This consultation from the Banking Standards Board offers a number of opportunities to further enhance the relationship between firms and professional bodies.

      “In particular, we recommend that firms (and the BSB) should encourage individuals to hold a relevant and appropriate professional qualification, be a member of a relevant professional body, comply with a professional Code of Conduct and complete relevant, audited CPD annually.”

      damian.fantato@ft.com