The comments were made by the alliance in its response to the Banking Standard Board’s (BSB) consultation on certification and risk.
Formed in March this year, the Chartered Body Alliance is composed of the Chartered Insurance Institute, Chartered Institute for Securities and Investment (Cisi) and the Chartered Banker Institute.
The alliance said its proposed actions would address areas the BSB has “overlooked” or “missed”. It argues its proposed changes would close information loopholes that allow those who break the rules in one part of the industry to resurface in another.
International appeal
Rebecca Aston, Cisi manager, ethics and integrity, said the BSB guidance, along with the alliance’s proposed changes, would make operating in the UK more appealing for international financial service professionals.
“The emphasis placed by the FCA on Fitness & Propriety echoes the work which is already undertaken by professional bodies in raising standards and supporting individual development throughout a person’s career,” Aston said.
“For anyone wanting to demonstrate their commitment to excellence, professionalism and ethics, these standards raise the profile of professional body membership,” she said.
Aston said if other jurisdictions wish to make a move towards promoting individual accountability, the BSB guidance and proposed changes by the alliance would be a good place to start.
“Particularly the CBA’s emphasis on inspiring individuals and employers to go beyond simply meeting regulatory requirements in order to enhance and sustain a culture of responsible, ethical professionalism in financial services,” she said.
Annual checks
One of the areas the alliance says the BSB has overlooked is in advising firms to share the results of certification decisions with the appropriate professional membership body.
These decisions are the annual checks which firms must carry out to ensure bankers are fit and proper to perform their job functions.
“We would argue that we 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,” the alliance said.
“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 highlighted two areas where it said the BSB guidance was missing two possible sources of information. These being whether an individual was in breach of other conduct rules and whether a professional body had decided not to issue an individual’s Statement of Professional Standing.
