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CII holds staff redundancy talks

The Chartered Insurance Institute is holding consultation talks with staff as it forecasts a drop in revenues for next year.

Around a dozen of the CII’s 200 staff are at risk of redundancy, including management. Staff have entered into a consultation period which will run for the next few weeks.

A CII spokesman says: “Against a background of continuing global financial turmoil and having taken into account the approach of the RDR deadline, the CII has forecast a reduction in revenue for 2013. As a not-for-profit chartered body we seek to balance revenue with costs on an annual basis and aim to avoid reporting a loss.

“In anticipation of lower revenues next year, we have reduced our 2013 budget accordingly and this has required that we review staff costs. A number of roles have been identified as being at risk.”

Aurora Financial Planning chartered financial planner Aj Somal says: “If the CII is anticipating a large drop in income, the consultation process is a natural consequence of that. There has been a mad rush for examinations in the years leading up to RDR, and obviously that demand will not be there post-RDR.”

But Somal says the CII may yet see a boost to profits if the FSA decides to embark on RDR mark II, which could see qualifications raised further.

He adds: “If that is the case, the CII could actually be in line for a bit of a windfall.”

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