The Chartered Insurance Institute is calling for the Financial Conduct Authority to take chartered status into account when judging the culture of firms.
The FSA’s consultation paper on the FCA’s approach to regulation, published in June, says firms should “set, embed and maintain a firm-wide culture that supports choice and an appropriate degree of protection for consumers”.
In its response, the CII says: “We suggest the FCA supervisors should take ’chartered’ into account when assessing this.”
The CII says that higher professional standards help restore trust in financial services because those committed to them pose less risk of consumer detriment.
Director of policy and public affairs David Thomson says: “The paper talks vaguely about culture and behaviour but does not specify what that looks like. Encouraging improvement should go alongside discouraging bad behaviour.”
Anand Associates managing director Bhupinder Anand says if the FCA does take chartered status into account, it could reignite debate over whether QCF level four is a high enough minimum qualification for advisers.