The Financial Services Authorityâ€™s Retail Distribution

CISI RDR Implementation Guide ©CISI 2011

The Financial Services Authority’s Retail Distribution Review (RDR)

Implementation Guide

September

2011

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RDR Annual CPD Core Topic EventsUnder the RDR, the FSA is introducing compulsory CPD for all retail advisers to assist in achieving ongoing competence. A minimum of 35 hours of CPD must be completed on an annual basis and activities should be recorded. To help members, the CISI offers a wide range of events, many of which are free, or heavily discounted, including:

Courses and conferences (discounted for members)London CPD events (free to members)Regional CPD events (free to members)

The CISI also offers a range of elearning tools including Professional Refresher (some modules are specifically designed for RDR qualification gap-fill) and Infolink (an online library) and has developed CISI TV which will provide access to CPD seminars.

It also provides printed materials including RDR-compliant workbooks, the Regulatory Update and the Investment Management Review.

Visit cisi.org/events for more details

In addition to the CISI’s own CPD events and eCPD opportunities, there is a wide range of CISI accredited training providers (found at cisi.org/atp), CISI accredited CPD providers (found at cisi.org/cpdotherbodies) and CISI approved gap-fill providers (found at cisi.org/gapfillverification) who can assist in meeting the regulatory requirements.

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ContentsIntroduction 5

The Top 6 Frequently Asked Questions 6

RDR and the Regulations 7 Background to the regulatory changes 7 Key RDR requirements for individuals 8 Key RDR requirements for firms 9

The Role of the CISI 10 The CISI as an Accredited Body 10 Corporate Supporters 11 CISI Register 11

Statement of Professional Standing (SPS) and how to apply 12 Introduction 12 Application process 14 SPS application timescales 16 How to align your CPD year with your SPS application 16 Situations where the CISI may reject an SPS application or suspend or withdraw an SPS 17 SPS appeals mechanism 17

Qualifications 22 Introduction 22 Qualifications choices for firms and individuals 23 Investment Advice Diploma (IAD) 26 The CISI level 7 Masters programme (Wealth Management) 27 CISI qualifications on the FSA’s list 30 Certificate in Private Client Investment Advice & Management (PCIAM) 30 PCIAM entry requirements 31 CISI level 6 Diploma 32 PCIAM alternative assessment 32 Legacy qualifications 33 Discretionary management 34 Qualification and gap-fill verification process 34

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RDR gap-fill 36 Introduction 36 CISI gap-fill guidance 36 CII gap-fill guidance 37 CPD 38 RDR CPD requirements for initial SPS 38 Ongoing RDR CPD requirements 39 CISI CPD 40 Superuser 41 Structured learning: what it is and what it is not 42 RDR-specific CPD requirements 43 The CISI’s CPD scheme 44 CPD audit requirements 46 CISI accreditation of a firm’s own scheme 46

Discipline 50 The FSA’s approach to discipline 50 The CISI’s approach to discipline for members 50

Ethics 51 The CISI’s promotion of trust and integrity 51 The CISI’s Code of Conduct 51

The Pinnacle of Professionalism: Chartered designation 52 New for wealth managers is the designation Chartered Wealth Manager 52

More information 56

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IntroductionWelcome to the fifth in a series of booklets produced by the CISI. This new booklet offers information and practical support as we move into the ‘live’ RDR environment. The CISI anticipates having full FSA accreditation for the purposes of RDR by October 2011. The CISI’s own services are set out in this booklet, together with outline prices where applicable, and with the CISI’s interpretation of the requirements for guidance. Apart from the background section setting out the regulatory context, this guide is focused on the practicalities of what people have to do to comply, and where the roles and responsibilities between the individual, the firm, the accredited bodies and the regulator lie.

As the industry moves into another significant chapter in its history, we look forward to supporting our members, firms and the wider public in delivery of the new standards. Many will be aware of the new qualifications requirements, and will be meeting them, but the new requirements for continuing professional development, and for ethical compliance, are new to many in the sector, and these are dealt with in greater depth in this guide.

Alan Yarrow, Chartered FCSI(Hon)Chairman, CISI

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The Top 6 Frequently Asked Questions before you go any further into this booklet...

…and the CISI answers to them.1 Are there any waivers? Very rarely! Any waivers must be applied for to the regulator directly, and

the CISI understands that they are only granted in wholly exceptional circumstances and not because individuals have run out of time.

2 If I have no evidence of my qualifications, can I declare I have them on the basis of professional trust?

No. The CISI must have documentary proof, and has to verify 100% of qualifications including any gaps filled by structured learning.

3 Do company updates and company briefings count as structured CPD / structured learning?

Yes, if they are intended to enable participants to learn and they have the opportunity to ask questions.

4 Can reading be counted as structured CPD / structured learning?

Only in exceptional circumstances which are defined clearly in relation to very specific learning outcomes. Otherwise reading is unstructured.

5 Can a firm insist that an individual employee does the full 35 CPD hours in the first year to December 2012, even though the regulation does not come into force until then?

Yes.

6 Can a firm insist that an individual employee does more than the minimum FSA requirement, eg, insisting on structured learning for all of the 35 hours, or excluding any reading?

Yes. Some firms have a very explicit CPD scheme which goes further than the FSA minimum standards, and individual advisers are recommended to check their firm’s requirements.

Note: The terms ‘structured CPD’ and ‘structured learning’ have at times been used interchangeably to mean the same thing by the regulator, and these terms are consequently used interchangeably in this booklet.

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RDR and the RegulationsBackground to the regulatory changes The UK financial services regulator, the Financial Services Authority (FSA), launched its Retail Distribution Review (RDR) in June 2006. The review targets the quality and standard of advice available to consumers in the United Kingdom retail financial services sector.

In summary, the FSA wants a retail market where:

• information for consumers is clear, simple and understandable;

• firms are soundly managed, adequately capitalised and treat their customers fairly;

• regulation is risk-based and principles-based; and consumers are capable and confident.

The professionalism of practitioners giving advice to retail customers and consumers has been a key part of this initiative, and this is the area that affects the CISI.

Following the launch of the RDR, the FSA issued a number of consultation documents detailing potential RDR policies on professionalism, culminating in Policy Statement (PS) 11/1, detailing the final RDR policy and alterations to the FSA’s Training and Competence sourcebook.

In June 2011, the FSA announced that it was “minded to accredit” the CISI as one of a small number of Accredited Bodies. It is anticipated that the CISI’s full Accredited Body licence will be ratified by October 2011.

In implementing the RDR, the FSA has made several changes to the Handbook (the PS11/1 Handbook changes to the Supervision Manual (SUP) and TC are listed under Instrument 2011/5; these changes are specific to retail).

Some of these changes took effect from 1 February and 1 July 2011, with the remainder effective from 31 December 2012. Individual practitioners affected by the changes must fully comply by the end of December 2012 and firms must make sure that their employees have complied by this date. Failure to comply means that the retail investment adviser will not be authorised to give retail advice.

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Key RDR requirements for individuals

Who is in scope?The RDR applies to a practitioner:

• who is currently considered a retail investment adviser by the FSA and plans to be working within the retail sector of the UK on or after 31 December 2012; or

• who aims to become a retail investment adviser on or after 1 January 2013.

This means that RDR applies to anyone who advises any financial investment service to the retail market, (other than general insurance and commercial banking).

What do individuals affected by the RDR have to do?An individual adviser must apply for a Statement of Professional Standing (SPS).

They need to show that they have:

ü fully completed the qualification requirement (which may include filling gaps between their qualification and the new requirements);

ü maintained competence through continuing professional development (CPD);

ü adhered to the Approved Persons Regime (APER); and

ü complied with a recognised code of conduct, such as the CISI’s.

It is the individual adviser who must apply for a SPS, declare that their application is full and complete, and take responsibility for their own individual professionalism. Some firms will want to make ‘bulk’ applications for SPSs on behalf of a number of staff, but this must include an individual declaration by each adviser.

A retail investment adviser who is currently practising within the retail sector in the UK must hold an SPS by 31 December 2012.

This booklet provides more details on what is involved in acquiring the SPS, how and when to apply and what is involved in satisfying each of the SPS requirements. SPSs can be issued to advisers only by an FSA-recognised Accredited Body.

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Key RDR requirements for firms A retail investment adviser is defined by the FSA as an employee who carries out activities 2, 3, 4, 6, 12 and 13 in TC Handbook 1.1R.

As an overview, firms must:

• ensure their retail investment advisers obtain an SPS;

• deal with the FSA in an open and cooperative way;

• disclose to the FSA any issues which it would reasonably expect notice of;

• alert the FSA when they identify competence and ethics issues with their advisers;

• notify the FSA when an Approved Person (including advisers within scope of the RDR) ceases carrying out his or her role. Where the reason for cessation of regulated activities is dismissal or suspension, the firm must provide further explanation;

• notify the FSA if they become aware of information which might suggest an Approved Person is no longer a fit and proper person to conduct Approved Person activities;

• notify the FSA of issues if the adviser has ceased to be employed by them;

• provide the FSA with notification of which Accredited Body or Accredited Bodies are being used by employees; and

• provide relevant data to the FSA (the FSA proposes firms should inform it of the names of individual advisers who have any complaint made against them claiming £5,000 or more, or if three or more complaints are made against an adviser in a 12-month period).

Firms should consult the FSA handbook and the regulator to obtain full details on the requirements of their responsibilities under the RDR. The CISI will give every assistance it can, and, while firms are not obliged to share information with Accredited Bodies such as the CISI, they are ‘encouraged’ to do so by the regulator. In particular, the CISI may ask firms to confirm an adviser’s CPD record.

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The role of the CISI The CISI is the leading professional body for securities and investment practitioners. The CISI has been dedicated to professionalism since it was established in 1992 and has some 40,000 members.

It is anticipated that the CISI will be ratified as an Accredited Body by October 2011, which means that it can issue SPSs.

As the CISI works with many firms, who are its Corporate Supporters, it will offer its Accredited Body services to the staff of its Corporate Supporters as well as to its members. However, it anticipates that the vast majority of individuals seeking SPSs will be its members. More information about CISI membership is available by visiting cisi.org/membership.

The CISI’s policy is that it will do everything it can to enable members, and the staff of corporate firms, to comply fully with the RDR requirements. It will provide a cost-effective and efficient service to enable firms to monitor and measure the progress of their staff towards meeting the requirements, as well as offering the most effective services possible for individual members.

The CISI as an Accredited Body

Accredited Body roles and responsibilities The key responsibility of an Accredited Body is to issue SPSs. In discharging this effectively on behalf of the regulator, the CISI needs to demonstrate that it:

• acts in the public interest and furthers the development of the profession;

• carries out effective independent verification services;

• has appropriate systems and controls in place and can provide evidence to the FSA of the continuing effectiveness of verification procedures; and

• will co-operate with the FSA on an ongoing basis, including sharing relevant information with the regulator.

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Corporate Supporters The CISI offers businesses across the financial services industry the opportunity to become Corporate Supporters.

There are certain services available only to Corporate Supporters because of the essential requirement of complying with the CISI Code of Conduct, for example, accreditation of a firm’s own CPD scheme. The CISI CPD Superuser service is also free to Corporate Supporters, please see page 41 for more information.

More information about CISI Corporate Supporters is available by visiting cisi.org/corporate.

CISI registerThe CISI will issue a public register of all advisers who have been issued with an SPS (it should be noted that the FSA holds the only official register of the adviser’s Approved Person status). The CISI register will provide sufficient detail for employers, potential employers and members of the public to verify the validity of any CISI SPS presented to them. The CISI public register has not yet been established and will be announced through the CISI website at cisi.org/rdr.

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Statement of Professional Standing (SPS) and how to applyIntroductionThe FSA has decided that each retail investment adviser must hold an SPS issued by an Accredited Body by 31 December 2012. Each ingredient of an SPS is covered comprehensively in the pages that follow.

To obtain an SPS, advisers must provide the CISI with:

• evidence of the qualification(s) achieved to meet RDR requirements (this includes evidence of any qualifications ‘gap-fill’ they have had to undertake to fill gaps between the qualification they have and the new exam standards);

• evidence of annual achievement of 35 hours of appropriate CPD to meet RDR requirements (but please see note on page 14 about the initial SPS which is to end December 2012);

• confirmation of adherence to the FSA’s Statements of Principle and Code of Practice for Approved Persons (APER); and

• confirmation of compliance with a recognised code of conduct, such as the CISI code of conduct.

Each SPS lasts for 12 months and will need to be renewed annually.

Evidence of the qualification, including appropriate qualifications gap-fill, will be need to be provided only once. The CISI will maintain all records securely for each application made and the evidence it contains.

An individual must make a declaration that permits the CISI to share information with the regulator and a third party as required, together with a declaration of the validity and accuracy of the information supplied; for the declaration please see cisi.org/rdrspstandc.

The vast majority of applicants for an SPS will be members. To apply for an SPS, you must be a current member of the CISI or an employee of a CISI Corporate Supporter. The disciplinary consequences of failing to meet the SPS requirements apply to all who seek an SPS from the CISI.

The CISI standard SPSThe standard SPS which will be issued by the CISI is shown opposite. Please note the different pieces of information it will contain. On the reverse of each SPS will be the CISI Code of Conduct.

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This is to certify that

John James Smith (FSA Reference Number: ABC12345)

has fully completed the qualifications requirement, has maintained competence through continuing professional development and has adhered to the FSA APER

and the CISI’s Code of Conduct

This Statement of Professional Standing is valid for the period:

1 April 2011 to 31 March 2012

Ruth Martin, Head of Accredited Body, Chartered Institute for Securities & Investment

People must be approved by the FSA before giving financial advice. You can check if this person is approved by the FSA to give advice by going to www.fsa.gov.uk/register and searching with their FSA individual reference number.

CISI number: CISI Membership Grade: Date of joining:

This Statement of Professional Standing remains the property of the CISI and can be recalled at any time. 8 Eastcheap, London, EC3M 1AE +44 20 7645 0600 cisi.org

statement of professional standing

Simon Culhane, Chartered FCSI, Chief Executive Officer, Chartered Institute for Securities & Investment

The certificate highlights the fact that the individual adviser has

fully met the RDR qualifications requirements and holds at least a level 4 RDR-relevant qualification

The certificate contains the individual adviser’s FSA

Reference Number

The certificate highlights the fact that the individual adviser

has maintained a log and recorded evidence of his or her continuing professional

development

The certificate contains the

individual adviser’s CISI number

The certificate contains the date

the individual adviser joined the CISI (if applicable)

The certificate highlights the fact that the individual

adviser has adhered to the FSA APER

and the CISI’s Code of Conduct

The certificate highlights the

12-month period for wihich the SPS

is valid

In applying for an SPS, both members and non-members who are applying by virtue of being

CISI Corporate Supporter staff will

need to comply with the CISI Code

The certificate contains the individual adviser’s CISI

membership grade (if applicable)

The certificate is the property of the CISI and must be returned

immediately if recalled

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The CISI basic SPSThe other, more basic SPS does not include CPD and can be issued once only to an individual and in specific circumstances.

Maintaining competence is an essential prerequisite for any existing adviser seeking an SPS. The flowchart for this is shown on pages 18 and 19.

From 31 December 2012, it will be mandatory to follow the specified number of hours and type of learning that needs to logged. However, the form that this takes (structured learning of at least 21 hours) and the number of hours to be logged (35 in total each year) will only become mandatory for SPS applications made after 31 December 2012, which is when the rule takes effect.

Consequently advisers seeking their first SPS, which they need by 31 December 2012, can in principle choose whether to have the standard full SPS from the CISI, which will specify that they have met the new CPD requirement, or a more basic SPS which says they did not need to do so in this initial year. Advisers considering the basic format pre-31 December 2012 are strongly encouraged to check their firm’s own policy regarding this issue. The CISI anticipates that most applicants will seek the standard SPS.

Newly qualified advisers will not be required to meet the specific CPD requirements for their first SPS application, regardless of when the application is made (before or after 31 December 2012). Newly qualified advisers who decide not to meet the CPD requirements will also receive the more basic SPS. This is shown overleaf. The CISI Code of Conduct will be on the reverse of the SPS.

Application processThe CISI must receive applications for the initial SPS no later than 31 October 2012 in order to enable advisers to comply by the deadline of 31 December 2012. Applications made after 31 October cannot be guaranteed to be processed and verified to the high standards required in time for an SPS to be issued by 31 December 2012. Please make your application as soon as you can.

Applications made requiring CPD validation must be made within three months of the adviser’s CISI CPD log closing. Please read the section on page 16 for more information.

The CISI anticipates being able to issue SPSs from October 2011. Applications can be made by using the SPS online application system in 2012 or by downloading the appropriate form at cisi.org/rdrspsapplication. Completed forms should be sent to [email protected], along with evidence of qualifications and gap-fill. A fee of £45 will be charged to members applying for an SPS, although this will be reduced to £35 for members who pay in advance with their membership subscription fees. The fee is necessary to reflect the commitment of the CISI that its members who are not affected by the RDR will not be expected to contribute to the cost of it.

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A fee of £125 per SPS will be charged for Corporate Supporter staff who are not members. The fees for Corporate Supporter staff who are non-members will contribute to the significant additional costs incurred in checking information on individuals not previously known to the CISI.


John James Smith (FSA Reference Number: ABC12345)

is authorised to practise as a retail investment adviser having fully completed the qualifications requirement,

and has adhered to the FSA APER and the CISI’s Code of Conduct

This Statement of Professional Standing is valid for the period:

1 April 2011 to 31 March 2012

Ruth Martin, Head of Accredited Body, Chartered Institute for Securities & Investment

People must be approved by the FSA before giving financial advice. You can check if this person is approved by the FSA to give advice by going to www.fsa.gov.uk/register and searching with their FSA individual reference number.

CISI number: Date of joining:

This Statement of Professional Standing remains the property of the CISI and can be recalled at any time. 8 Eastcheap, London, EC3M 1AE +44 20 7645 0600 cisi.org

statement of professional standing

Simon Culhane, Chartered FCSI, Chief Executive Officer, Chartered Institute for Securities & Investment

This Statement of Professional Standing has been issued to the above adviser who, this year, has not needed to meet the standard Retail Distribution Review continuing professional development requirements.

35 hours CPD not m

et

as not r

equired

this y

ear only

The basic certificate will differ from the standard certificate

in that it will not state that the

individual adviser has maintained

competence through continuing

professional development and

will confirm that this is not a requirement

for this SPS year alone

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SPS application timescalesThe CISI will aim to issue SPSs within two months of receipt of an application as long as all the required information and accompanying evidence has been provided. If information or accompanying evidence has been omitted from the application and the CISI needs to request more information from the adviser, then applications will take two months from when the additional information was submitted. As detailed on page 14, the two-month timescale for processing SPS applications will not apply for applications received between 1 November 2012 and 31 December 2012. To see the application timescale flowchart, please see the SPS Process (initial application) flowchart on page 20.

How to align your CPD year with your SPS applicationOne of the ongoing mandatory requirements for applying for an SPS is to demonstrate compliance with the RDR CPD requirement. The only exception will be for applications for basic SPSs, which will not be required to meet the specific CPD requirements for their first SPS application (see page 14 for more details).

To ensure currency of the CPD submitted for RDR purposes, the CISI will need all SPS applications to be made within three months of the applicant’s CPD year closing. Many firms are expected to insist upon a standard SPS application date for all their retail investment advisers.

Some retail investment advisers may have CPD logs that close after the CISI’s 31 October 2012 deadline. This may, therefore, require some advisers to move their CPD year in order to obtain an SPS within the FSA deadline of December 2012.

You can only move your CISI CPD year backwards, ie, you cannot set your CPD log to restart in the future as there cannot be gaps between your CPD years. When you reset your CPD year you should ensure that you have, or will have, sufficient CPD to meet the RDR CPD requirements.

If you need to move your CPD year then please contact [email protected], providing brief reasons why you wish to do so. If your firm has set your CPD date, then please speak with them before requesting a change.

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Situations where the CISI may reject an SPS application or suspend or withdraw an SPSOn page 8 of this booklet, we highlighted the key requirements that an adviser must demonstrate and evidence in order to achieve an SPS.

Where any of these criteria cannot be met, or evidence of meeting the criteria cannot be demonstrated, the CISI will be unable to issue an SPS.

There may be occasions when the CISI has cause to suspend or withdraw an SPS. This may be at the request of the regulator.

Another occasion where an SPS may be withdrawn is if an adviser’s CPD is audited by the CISI and the decision is made that the audit pack does not meet the FSA requirements for RDR CPD. Please see page 46 for more information about the CISI CPD audit requirements. In most instances where minor non-conformances are identified the CISI will, with the regulator’s permission, seek to issue an action plan for the adviser to work to, to a fixed deadline, rather than suspend or withdraw an SPS. However, there may be occasions where suspending or withdrawing an SPS is the only option available to the CISI.

All issued SPSs remain the property of the CISI and advisers must immediately return the certificate if requested to do so by the CISI.

SPS appeals mechanismAdvisers who have an SPS application rejected, or their SPS suspended or withdrawn, will have the right to appeal. There must be grounds for appeal. There will also be scope for an independent review. The appeals policies will be issued on the CISI website at cisi.org/rdr.

The CISI’s Accredited Body Committee oversees this process. The decision of the appeals panel and independent review will be final.

Advisers wishing to submit feedback or query a result relating to exam standards for an RDR-compliant qualification, or associated gap-fill, must do so through the existing CISI qualifications appeals process. Please visit cisi.org/exampolicies for more details.

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How to apply for an SPS

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cisi.org/

cisi.org/membership

cisi.org/gap-

cisi.org/gap-fill templates

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cisi.org/rdr

cisi.org/

[email protected]

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SPS Process (initial application)

1. Maintaining competence is an essential prerequisite for any existing adviser seeking an SPS. From 31 December 2012 it will be mandatory to follow the specified number of hours and type of learning that needs to logged. However the form that this will take (structured learning of at least 21 hours) and the number of hours to be logged (35 in total each year) will become mandatory only for SPS applications made after 31 December 2012, which is when the rule will take effect.

Consequently advisers seeking their first SPS, which they will need by 31 December 2012, can in principle choose whether to have the standard SPS from the CISI, which will specify that they have met the new CPD requirement, or a more basic SPS which will say they did not need to do so in this initial year. Advisers considering the basic format pre-31 December 2012 are strongly encouraged to check their firm’s own policy regarding this issue. The CISI anticipates that most applicants will seek the standard, full SPS.

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SPS Process (initial application)

Newly qualified advisers will not be required to meet the specific CPD requirements for their first SPS application, regardless of when the application is made (before or after 31 December 2012). Newly qualified advisers who decide not to meet the CPD requirements will also receive the more basic SPS.

2. Firms are encouraged by the FSA to play an active part in confirming the accuracy of an adviser’s SPS application and relevance of their CPD. However, this is not a regulatory requirement. All firms are encouraged to actively verify their advisers’ SPS submissions and CPD requirements prior to submission to avoid potential difficulties with the application.

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Qualifications IntroductionThe qualification requirements for retail investment advisers under RDR are:

• Qualifications need to be at least level 4 on the Qualification Credit Framework (QCF) and completed by end of 2012.

• Qualifications must be on the FSA’s Appropriate Qualifications list, which specifies the activity (activities) which the qualification covers.

• Many legacy qualifications, or those approved for RDR purposes as relevant and at the appropriate level, have gaps between what they cover and the new standards. Gap-fill is needed to cover these, to be completed by the end of 2012.

• FSA TC appendix 4E contains the list of exams that are appropriate under the RDR, including a list of existing or legacy qualifications that can be used by advisers, with gap-fill, to demonstrate that they meet the higher-level exam requirements. The deadline for existing advisers to obtain a level 4 or higher qualification is 31 December 2012 (although please note that all SPS criteria need to be met by this date, and the last date the CISI can guarantee SPS applications will be processed in time for this date, is 31 October 2012). New advisers have 30 months to gain an appropriate qualification, starting when the trainee begins the relevant activity. For most activities, individuals may only start an activity once the regulatory module has been attained. They will then have 30 months to attain the rest of the qualification.

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Qualifications choices for firms and individualsFirms will need to make a decision on which qualifications their advisers should take in order to become RDR-compliant.

Existing advisers can choose to take the Certificate in Private Client Investment & Management (PCIAM) exam and then use gap-fill or attempt a new level 4 (or higher-level) qualification.

New or trainee advisers may choose the RDR-compliant CISI level 7 Masters, or the new level 4 Investment Advice Diploma (IAD). New advisers may also take PCIAM once they have completed the IAD.

The CISI will support firms in whatever qualification route they decide to take.

The CISI currently provides a range of approved qualifications along with gap-fill and has an RDR-compliant level 4 qualification, the IAD.

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The CISI’s RDR flowchart for new (or existing) advisers

Level 4FSA Regulation and

Professional Integrity+ +

Level 4Investment, Risk

and Taxation


Professional Integrity+ +

Level 6Financial Markets


Professional Integrity +Level 4

Investment, Risk and Taxation

+

Level 4 Investment Advice Diploma (Securities / Derivatives)

Level 6Financial Markets

Level 4 Benchmark:Securities / Derivatives +

Level 5Private Client Advice

1

2

1

2

3

Benchmark for Securities and Derivatives

Benchmark for Packaged Products

CISI Masters Programme Wealth Management

+

+

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Note: Level 4 exams are taken by computer-based testingLevels 5, 6 and 7 are written exams

Level 4 Investment Advice Diploma (Securities) or Investment Advice Diploma (Derivatives)=

Level 4Securities / Derivatives

Level 7 CISI Masters Programme in Wealth Management =+

Level 7Portfolio Construction

Theory

Level 7Applied Wealth Management

Level 5Private Client Advice

Benchmark for Securities and Derivatives

Benchmark for Packaged Products

CISI Masters Programme Wealth Management

Level 4 Investment Advice Diploma

(Private Client Advice)=

Level 7 CISI Masters Programme in Wealth Management =+

Level 7Portfolio Construction

Theory


Level 7CISI Masters Programme in Wealth Management

=+Level 7

Portfolio Construction Theory


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Investment Advice Diploma (IAD)The Investment Advice Diploma (IAD), can be taken by new or existing advisers and comprises two core units and one or more specialist units depending on the activities undertaken.

Core Units• Level 4: FSA Regulation and Professional Integrity (computer-based testing

(CBT))

• Level 4: Investment, Risk and Taxation (CBT)

Specialist Units• Level 4: Securities (CBT)

• Level 4: Derivatives (CBT)

• Level 5: Private Client Advice (a narrative-style exam)

There are no gaps between the IAD and the new exam standards, so gap-fill is not required.

We recommend, including self-study, a minimum of 140 hours per unit to prepare for each exam.

Full information about the IAD can be found at cisi.org/investmentadvicedipl

Completion of IAD allows candidates to join as Associate Members (ACSI) and, together with three years’ logged CPD via the CISI CPD scheme and gaining an ‘A’ grade in IntegrityMatters, they will fulfil the requirements for Chartered MCSI.

ExemptionsHolders of existing level 3 qualifications are NOT eligible for exemption from any units in the new CISI level 4 Investment Advice Diploma.

The CISI will grant an exemption from only one of the IAD core units, FSA Regulation and Professional Integrity or Investment, Risk and Taxation. This is an update in policy and details on level 4 exams which may be used as an exemption and how to apply can be found at cisi.org/exemptionsiad

Advisers who hold the IMC4, Diploma in Regulated Financial Planning or ifs level 4 Diploma for financial advisers and who pass the CISI level 4 Securities or Derivatives units may be assured they will still be eligible for an SPS, provided they also meet the FSA’s non-qualification requirements.

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The CISI level 7 Masters programme (Wealth Management)The CISI level 7 qualification normally takes at least 15 months to complete; advisers seeking compliance by 31 December 2012 should bear this in mind if they have not yet started preparing for any of the three units in this qualification. As a level 7 qualification, it meets the RDR requirements in full and can be taken by new and existing advisers, possibly with a regulatory paper initially so that candidates can work under supervision within the FSA’s Training and Competence regime.

The qualification comprises three units:

1) Financial Markets: the environment in which wealth management operates

2) Portfolio Construction Theory: the theory of portfolio construction, taxation and trusts

3) Applied Wealth Management: practical portfolio construction and management

It covers the six FSA activities:

• Advising on (and dealing in) securities

• Advising on (and dealing in) derivatives

• Managing investments

• Advising on packaged products

If all units completed are from 1 December 2010 onwards, there are no gaps between the level 7 CISI Masters programme (Wealth Management) curriculum and the new exam standards, therefore gap-fill is not required. If some units were completed prior to 1 December 2010, then gap-fill will be required.

We recommend, including self-study, a minimum of 200 hours per unit to prepare for each exam. Full information about the CISI Masters in Wealth Management can be found at cisi.org/cisimasters

In the flowchart on pages 28 and 29, a further two options are given:

1) Taking a whole level 4 qualification first, plus the level 5 Private Client paper, permits exemption from one Masters unit

2) Taking a level 4 regulatory exam and then working under supervision as a trainee while completing the level 7 Masters.

Candidates completing the CISI Masters in Wealth Management are eligible for full membership (MCSI). After one year as an MCSI, recording one year of CPD via the CISI CPD scheme and gaining an ‘A’ grade in IntegrityMatters, members can apply to become a Chartered MCSI.

Candidates completing the CISI Masters may, in conjunction with other specified membership criteria, also be eligible to use the designation Chartered Wealth Manager, which is described on page 52.

28


The CISI’s flowchart for existing retail investment advisers

New advisers who are

not FSA-authorised are advised to

take the level 4 Investment Advice

Diploma

Have you passed the full CISI Diploma,

taking relevant modules as per

your employer’s recommendation?

NO

No additional qualification needed, but gap-fill will be required

Are you currently

FSA-authorised

and working

in the industry?

Have you passed the

Certificate in Private Client

Investment Advice &

Management?

NO NOYES

YES YES YES

YES

Have you passed

the CISI’s Level 6 Masters

in Wealth Management?

NO

YES

Have you passed

the CISI’s Investment

Advice Certificate?

29


Step-change requirements -

PCIAM (Level 6), CISI Masters (Wealth Management), CISI

Diploma, plus gap-fill as required. Alternatively

take the Investment Advice Diploma

Are you able to verify you hold these exams?

We may have records of this. Please email your details to

[email protected] to check*

Have you passed a CISI Level 3 retail exam, eg, CISI

Certificate or Registered Representative, or were

you grandfathered prior to December 2001?

Have you passed

a non-CISI retail exam?

Please refer to your HR

department for further guidance

NO NO NO

YESYES YES

NO

*A fee will be charged in certain circumstances.

A fee is also payable for the issuance of any replacement exam certificates.

Please note that PCIAM may be taken by written paper or by alternative assessment.

Have you passed three or four LSE membership exams, or have you passed both the Stock

Exchange Practice and Technique of Investment LSE exams, or were

you awarded MSI(Dip) status?

30


CISI qualifications on the FSA’s list The qualifications below existed before the RDR policy but have been recognised by the FSA as suitable for the RDR when combined with gap-fill. These qualifications are particularly suitable for existing advisers and require additional gap-fill, inparticular the Certificate in Private Client Investment Advice & Management (PCIAM):

• PCIAM by exam and by alternative assessment

• Level 6 Diploma (where candidates hold three units as recommended by the firm)

Certificate in Private Client Investment Advice & Management (PCIAM)The PCIAM certificate has already witnessed a surge in the number of applicants and is the CISI’s recommended route for existing advisers who hold a relevant level 3 qualification or were grandfathered prior to November 2001 and who need to comply with the new qualification standards. The percentage of candidates who are very experienced advisers has increased and the pass rate has risen to 77% for the June 2011 sitting.

A premier service, priced at an additional £100 per exam (minimum of £250 per firm), is available for senior advisers wishing to take the exam in a more private environment, such as their offices, with personal invigilation.

Accredited by Ofqual as a stand-alone level 6 qualification, the PCIAM substantially covers the four core areas required by the FSA. These are:

• regulation and ethics;

• personal taxation;

• investment principles and risk; and

• the practical application of technical knowledge.

In order to support candidates who wish to take PCIAM to satisfy the step-change requirements, the CISI is offering additional sittings of this paper. Dates of sittings can be found at cisi.org/pciamhp

Advisers seeking to become qualified should be aware that they need to comply with the RDR by the end of 2012, in other words, they need to have completed any gap-fill and gained an SPS by 31 December 2012. The last sitting of PCIAM which is suitable for individuals who wish to be sure of meeting this deadline is July 2012. Candidates should be aware that at least 25% of PCIAM candidates normally need to resit. There is a September 2012 PCIAM sitting, results for which will be available in November 2012.

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Candidates sitting PCIAM in September 2012 who require an SPS before 31 December 2012 must make a paper-based application for the SPS by 31 October 2012, having completed gap-fill and all SPS requirements by that date, in the expectation that they will pass the September exam. The CISI cannot provide any refunds to unsuccessful applicants. Consequently, although PCIAM will be available after that date, the CISI can not guarantee that they will be able to issue an SPS before January 2013 for anyone taking PCIAM after the September 2012 sitting.

Candidates completing PCIAM, a level 6 qualification, are eligible for full membership (MCSI). After one year as an MCSI, recording one year of CPD via the CISI CPD scheme and gaining an ‘A’ grade in IntegrityMatters, members qualify for Chartered MCSI status.

Candidates completing the PCIAM may, in conjunction with other membership criteria, be eligible to use the designation Chartered Wealth Manager, which is described on page 52.

Existing advisers authorised for the following RDR activities can use PCIAM, topping up with gap-fill where necessary:

• Advising on and dealing in securities (including advising only)

• Advising on and dealing in derivatives (including advising only)

• Advising on packaged products

PCIAM entry requirementsThere are two other categories of candidate for whom PCIAM may be suitable:

1) Returners to the sector who may not be currently authorised but were previously.

The CISI will normally accept entries for PCIAM from candidates who are not existing authorised advisers if they hold a relevant retail benchmark qualification at QCF level 3, ie, the level of qualification required prior to the RDR.

Circumstances might include those who have been absent from the industry for some time.

2) New advisers who have successfully completed the CISI’s level 4 Investment Advice Diploma. The CISI will accept other level 4 qualifications which meet in full the qualifications requirements of at least one of the FSA-authorised activities above, and which are listed by the FSA*.

New advisers need not complete gap-fill if they have covered the exam standards in their level 4 qualification.

*For example, IMC4 on its own does not fulfil a complete qualification requirement and would need to be combined with a securities/derivatives unit, or CFA1, in order to satisfy one of the qualifications in full.

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CISI level 6 Diploma The CISI’s level 6 Diploma is acceptable where the candidate has taken three units recommended by the employer. Further information about the Diploma can be found at cisi.org/cisidiplomahp

PCIAM alternative assessmentThe CISI alternative assessment is on the FSA appropriate qualification tables for experienced, authorised advisers who wish to meet the requirements of the RDR by means other than a traditional written exam, either to meet the 31 December 2012 deadline, or thereafter.

Key features of the CISI scheme are:

• assessment based on the learning outcomes of the Certificate in Private Client Investment Advice & Management (PCIAM)

• a written submission, and a two-hour assessment made up of a competency interview and a case study presentation

• successful candidates gain the PCIAM

• minimal structured learning hours to complete the gap-fill to full RDR compliance

• trained senior practitioner assessors

• quarterly assessments

The CISI scheme is priced at £1,750. Full information can be found at cisi.org/rdraassess

33


Legacy qualificationsSome exams are no longer available but count as transitional qualifications. These are the MSI(Dip); the Investment Advice Certificate; certain combinations of LSE Full Membership exams; and the level 6 CISI Masters in Wealth Management.

Existing advisers will be deemed level 4 (or above) qualified if they hold one of the legacy qualifications.

In order for advisers to be compliant with the RDR standards, any gaps between the content of these exams and the new exam content needs to be filled using gap-fill.

A list of the main legacy qualifications offered by the CISI and LSE follows:

Chartered Institute for Securities & Investment• Level 6 Masters in Wealth Management (it became level 7 and RDR-compliant

from December 2010)

• MSI(Dip) (where candidates hold three units as recommended by the firm)

• Investment Advice Certificate

London Stock ExchangeFull Membership exams (where holders have three or four of the units or hold both the Stock Exchange Practice and Technique of Investment).

Please note, the CISI was not the awarding body for the London Stock Exchange exams. If the CISI does not hold any record of your attainment of these exams it is your responsibility to provide documentary evidence of them.

34


Discretionary management The FSA announced that it is reviewing the exam standards for managing investments in its consultation paper, CP11/18. Until the FSA has consulted with the industry any changes to the list of appropriate qualifications for discretionary managers are not known. However, it plans to increase the level to level 4 for any new entrants. The FSA proposes that existing investment managers, who are not affected by the RDR, will meet the changes through regular CPD. Advisers who are affected by the RDR will still need to meet the level 4 RDR requirements.

Please be assured the CISI will work with the FSA to ensure the best possible outcome for discretionary managers and those advisers also affected by the RDR.

For new advisers who wish to hold an appropriate exam, the current list can be found in the FSA’s Appropriate Qualification tables, Appendix 4E.

For this activity the current CISI exams that are relevant are:

• Level 3 Certificate in Investment Management (not appropriate for advisers affected by the RDR or if the level for managing investments is increased)

• Level 4 Investment Advice Diploma

• Level 6 Private Client Investment Advice & Management

• Level 6 Diploma (three units recommended by the firm)

• Level 7 Masters in Wealth Management

If you have any queries as an individual or for your firm, please email [email protected]

Qualification and gap-fill verification processThe CISI provides free qualification and gap-fill verification services to members. Members can make immediate use of this service and do not need to wait until they apply for their SPS to receive confirmation that they have met the requirements. Guidance of how to apply for qualification and gap-fill verification is detailed at cisi.org/gapfillverification

The CISI is encouraging advisers to submit their qualification and gap-fill for verification as soon as possible. Certificates confirming that these parts of the RDR requirements have been met will be issued to successful applicants who apply in advance of their SPS application (an example appears opposite). Advisers who submit qualification and gap-fill verification in advance will not need to undergo the verification process again when applying for an SPS.

The CISI CPD log has an online gap-fill tool, which will allow members to apply for verification online.

35


CERTIFICATE OF RDR COMPLIANT QUALIFICATIONS


John James Smith

Candidate no. ABC123

has completed the qualifications requirement of the Retail Distribution Review by achieving an appropriate qualification

(as listed in the FSA’s TC Appendix 4 20110401)and meeting gap-fill requirements in the following activities:

Securities Date: 29 September 2011

MANAGING DIRECTOR

8 Eastcheap, London, EC3M 1AE

cisi.org

THIS IS NOT AN SPS, IT FULFILS THE QUALIFICATION rEQUIrEMENT OF THE rdr ONLY

Confirmation adviser has achieved their RDR compliant qualifications

and any required gap-fill CISI candidate number

RDR specialist areas

Date of issue

This confirms that this is not an SPS but fulfils the qualification requirement of the RDR only

36


RDR gap-fill IntroductionUnder the RDR, a number of existing authorised advisers are demonstrating the new requirement for a higher level qualification through a qualification they passed at an earlier time, or through a current but pre-existing qualification. This means that there are gaps to be filled between the new exam standards and these qualifications.

The regulator has said that these gaps can be filled by gap-fill. Accredited Bodies such as the CISI need to verify gap-fill 100% as gap-fill is considered the equivalent of completing part of a qualification. As qualifications gap-fill is essentially completing a qualification, the CISI follows the regulator’s guidance on interpreting what does and does not count.

The FSA has recognised a number of CISI and LSE qualifications as transitional and acceptable exams for the RDR. As such, the CISI has issued guidance on the gaps between these transitional exams and the new exam standards. The CISI also recommends what the minimum amount of structured learning needs to be to cover these gaps and has set out some options for advisers to consider.

CISI gap-fill guidanceThe gap-fill guidance is provided for:

• Private Client Investment Advice & Management (PCIAM)

• London Stock Exchange (LSE) full member exams (only certain exams qualify)

• Investment Advice Certificate (IAC)

• CISI Masters in Wealth Management (MWM) exams (to June 2010, fully RDR- compliant from December 2010)

• CISI Diploma

Guidance can be found at cisi.org/gapfillguide. All gaps must be addressed through structured learning prior to applying for an SPS.

Advisers using the CISI’s CPD online log will find a dedicated gap-fill log where the exact gaps each adviser has left to fill will be listed, as well as the means to assign structured learning to each gap. Advisers using CISI CPD events or activities will have these automatically logged but we anticipate that many will use a firm’s own seminars, together with other providers, and the CISI endorses provision other than its own. The CISI online gap-fill log is available at cisi.org/cpdlogin

37


Our list of CISI approved gap-fill providers can be found at cisi.org/gapfillverification.

Please note that the CISI will not accept reading as structured learning for gap-fill apart from in exceptional cases. Please contact [email protected] for clarification.

CII gap-fill guidanceThe CISI will provide gap-fill guidance to members on CII transitional qualifications. For individual guidance, please email the full qualification details and all exams completed within the CII qualification to [email protected].

If advisers have completed the gap-fill recommended by the CII but wish to apply to the CISI for an SPS, the CISI will accept the CII recommended gap-fill.

38


CPDRDR CPD requirements for initial SPSMaintaining competence via CPD is an essential prerequisite for any existing adviser seeking a SPS. This is the first time in the sector that the form that CPD takes, the length and type of activity, its purpose and its relevance is being measured and monitored. We anticipate considerable queries to deal with in this area as we implement the new requirements.

From 31 December 2012, it will be mandatory to follow the specified number of hours and type of learning that needs to be logged. However the form that this takes (structured learning of at least 21 hours) and the number of hours to be logged (35 in total each year) only become mandatory for SPS applications made after 31 December 2012, which is when the rule takes effect.

Consequently advisers seeking their first SPS, which they need by 31 December 2012 can in principle choose whether to have the standard SPS from the CISI, which will specify that they have met the new CPD requirement, or a more basic SPS which says they did not need to do so in this initial year. Advisers considering the basic format pre-31 December 2012 are strongly encouraged to check their firm’s own policy regarding this issue. The CISI anticipates that most applicants will seek the standard full SPS.

Newly qualified advisers will not be required to meet the specific CPD requirements for their first SPS application, regardless of when the application is made (before or after 31 December 2012). Newly qualified advisers who decide not to meet the CPD requirements will also receive the more basic SPS.

Please note, the terms ‘structured learning’ and ‘structured CPD’ are used interchangeably.

39


Ongoing RDR CPD requirementsIrrespective of whether advisers have achieved standard or basic SPSs, all advisers will, on an ongoing basis, have to meet the CPD requirements. The ongoing RDR CPD requirements are as follows:

• To record a minimum of 35 hours per CPD year (regardless of the number of hours worked by an adviser).

• CPD must be logged as either structured or unstructured (see the list on page 43).

• A minimum of 21 hours CPD must be structured learning, consisting of activities which take at least 30 minutes to complete.

• The remaining 14 hours CPD can be either structured or unstructured CPD.

• All CPD should be relevant to retail investment advice activities and relevant to the adviser’s current role and any anticipated changes to that role.

• Advisers should consider their development needs, identifying and planning their activities accordingly.

• Upon completion of CPD, advisers must detail their learning outcomes.

• Length of the CPD activity must be recorded.

• If a grade or score has been issued for the activity, this must be recorded.

• Encouragement to allocate each CPD activity against an RDR exam standard.

• Structured CPD must:

- be purposeful to meet a learning need;

- use material or activities that are designed to achieve a particular outcome;

- have a clear learning outcome; and

- be capable of being evidenced and independently verified.

• Examples of structured CPD include attending seminars, lectures, conferences, certified completion of appropriate e-learning, workshops, webinars or courses dealing with a relevant topic. Reading can be counted as structured CPD only in exceptional circumstances, and it can include those company briefings with a clear learning purpose.

• Structured CPD cannot include carrying out research on products and services for your client.

• Unstructured CPD may include research and reading industry or relevant material.

• The CISI strongly recommends that advisers limit themselves to a maximum of five hours reading if they undertake unstructured CPD.

• All CPD must be a bona fide learning experience.

• All CPD must be measurable by an Accredited Body.

40


CISI CPDThe CISI’s CPD log has been fully updated to meet RDR requirements. This allows members to log all of the RDR criteria, including learning objectives and learning outcomes. There is also a new gap-fill log which allows advisers to determine the gap-fill activities they need to undertake in relation to the RDR relevant CISI qualifications they have achieved, as well as to predict how CISI CPD activities will help them to fill the gaps.

The CISI has developed a wide range of CPD activities, suitable both for RDR and non-RDR affected members, which many advisers may choose to help them meet some or all of the RDR CPD requirements. The majority of CPD activities that the CISI provides are auto-logged, eg, the CISI will log the CPD for you.

• All activities marked with a ** are automatically logged by the CISI.

• All activities marked with an * are automatically logged by the CISI, if accessed online or via the CISI App. If paper-based copies are used, the CPD needs to be logged on the CISI CPD log by the member.

• Members need to log all other activities themselves.

CISI CPD activities includes:• CPD events – The CISI offers a full programme of free lunchtime and early

evening CPD events in London, regionally and internationally. **

• CISI TV – Members can catch up on past CISI events anywhere, anytime by watching online on the Institute’s own TV channel, CISI TV. **

• CISI Professional Refresher – This popular online learning solution has self-administered testing facilities. This facility allows you to absorb easily the most current information at a time convenient to you and you can progress through sections where your knowledge is strong and more slowly through areas where it is weaker. **

• Exams – Exams for a wide range of industry recognised CISI qualifications. **

• Professional Interest Forums (PIFs) – CISI members are welcome to join one, or all, or our seven free PIFs. Specialist networking and discussion groups, these forums enable members to meet and listen to presentations from practitioners in the industry, engage in an open discussion and share ideas and concerns in a confidential setting conducted under the Chatham House Rule. **

• CISI IntegrityMatters is an intelligent and tailored elearning tool designed to highlight dilemmas you may face at work. It enables you to test your ability to make ethical decisions in the workplace and consists of both a workshop and a full test. Users will be required to tackle six separate case studies which develop depending on how each question is answered. **

41


• Conferences and Training Courses – The Institute organises a wide range of events for all those working in today’s ever-changing financial services industry. These are topical events which provide comprehensive coverage of key issues in the financial markets and attract high-level delegates from around the world. Some of the CISI training courses are suitable RDR gap-fill activities. **

• Lectures – The CISI Annual Lecture provides you with the opportunity to hear industry leaders discuss issues of integrity and trust. **

• FCSI Masterclass – Exclusive to Fellows and Chartered Fellows, a series of masterclasses are run annually to provide an intimate learning environment for the Institute’s most senior members. **

• CISI Infolink – A one stop-shop for news items, articles and papers about the financial services industry, as well as slides and notes from CISI events. **

• Securities and Investment Review – The S & I Review is the official publication of the CISI. Every issue keeps you in touch with hot topics, news and activities and provides a way of keeping you up-to-date. *

• Regulatory Update – The Regulatory Update is an indispensable guide to changes and hot topics in the world of financial regulation. It details recent and future changes in UK regulation which affect FSA-authorised firms and includes the effects on the UK of decisions made in other regulatory jurisdictions, including Europe. *

• CISI Investment Management Review – Available for Members and Fellows and those with Chartered status, it surveys the best research and the most significant developments from around the world and contains analytical articles based on themes and issues of global significance. *

• Members who develop or assess CISI exams. **

• Members who Chair or present at CISI events. **

• Members who write industry-relevant articles, workbooks and journals for the CISI.

• Members who sit on CISI syllabus exam panels. **

• Members who contribute towards CISI learning materials.

• A member of either the CISI Board, or a panel/committee. **

SuperuserThe CISI also provides firms with the opportunity to view advisers progress towards CPD requirements with a Superuser facility. All the CPD logs of CISI members at their firm can be viewed with the Superuser and it allows firms to generate reports to review the CPD activities undertaken by individuals.

The Superuser has the following functions: Search, Activity Templates, Excel Import, Email and Logout:

42


• Search - Allows the user to search for and view individuals CPD logs as well as allows searches by CPD activity.

• Activity Templates - Allows the user to create a CPD entry and then apply it to one or more members of staff or create a CPD activity for staff to select once completed.

• Excel Import - Allows importing of CPD entries via an Excel spreadsheet. Please note the data need to be entered via the downloadable Excel Template.

• Email – Allows the user to email their members of staff from within the Superuser tool.

Further information about CPD and the CISI CPD requirements, both for the RDR and the CISI’s own scheme, will be available in the CISI’s CPD booklet. This booklet and additional information about CPD will also be available at cisi.org/cpd.

Each retail investment adviser must undertake CPD, and record and retain details of all CPD activities. These CPD records must receive independent verification from an Accredited Body (which the CISI is applying to become). The FSA expects Accredited Bodies to audit at least 10% of retail investment advisers’ CPD records. The CISI’s own CPD events incorporate automatic logging of your attendance upon presentation of a valid membership card, which is scanned.

Other CPD ProvidersWhile the CISI provides a wide range of CPD activities, it is perfectly acceptable for members to use other CPD providers. In fact the CISI accredits a wide range of CPD providers to enable members to have access to a considerable breadth of CPD activities to meet many specialisms. Members can also use unaccredited CPD providers.

The CISI provides a certificate which members can take along to other CPD providers that do not provide verifiable and auditable evidence of the CPD activity. This is downloadable from within your CISI CPD log.

Structured CPD, what it is and what it is notStructured learning / structured CPD must be a purposeful learning activity, ie, an activity undertaken for the express purpose of learning, such as a training course, or a company briefing on a new market, ie, where there are defined learning outcomes to be achieved, such as learning about a specified new market, or a specified new type of fund. It must be verifiable, eg, through attendance records, or through the independent logging of an elearning revision course.

The examples of this different categorisation, of structured and unstructured CPD and RDR requirements, and the CISI examples of each are shown in the following diagram.

43


RDR-specific CPD requirementsThe below diagram will provide assistance to the many firms whose employees are affected by the RDR.

Annual target 35 hours, a minimum 21 hours of which must be structured learning / structured CPD.

Note: Under the RDR, the key differentiation is between structured and unstructured. The above is the CISI’s interpretation of this.

Structured

Training Courses - eg, CISI’s Investment Principles & Risk

Workshops

CPD Events - eg, CISI’s Founders’ Series

Seminars

Conferences - eg, CISI’s Annual Conference

Verifiable eLearning - eg, CISI’s Professional Refresher

Exams

Lectures – eg, CISI Annual Lecture

Professional Interest Forums – eg, CISI’s Wealth Management Forum

Exam Training Courses – eg, through CISI Accredited Training Providers

Verifiable Webcasts – eg, CISI TV

Verifiable Podcasts – eg, CISI TV

Verifiable Live Webstreams

Chairing or Presenting at an Industry Relevant Event

Developing and Assessing Exam Questions – eg, for CISI’s exams

Training or Briefing Staff and Colleagues on Industry Relevant Topics

Writing Industry Articles, Workbooks & Journals – eg, CISI’s S&I Review

Syllabus Exam Panel – eg, CISI’s exam panels

Company Briefings/Updates / Team meetings with an explicit briefing remit

– eg, with external fund managers, stock meetings with equity specialists

44


The CISI’s CPD schemeMany firms will have employees affected by RDR and many who are not. Many are used to the existing CISI CPD scheme shown below.

Active target 35 hours

These activities are interactive or involve participation. This is proactive structured learning.

Max hours 30Min hours 1

These include all unaccompanied activities undertaken.


These encompasses activities that are of a briefing nature and where there are no opportunities for audience interaction.


These are concerned with sharing your knowledge and expertise for the benefit of others.


45


How do the RDR and the CISI’s own CPD scheme line up? They line up very well and the combined matrix is shown below.

Structured

Chairing or Presenting at an Industry Relevant Event

Developing and Assessing Exam Questions – eg, for CISI’s exams

Training or Briefing Staff and Colleagues on Industry Relevant Topics

Syllabus Exam PanelWriting Industry Articles, Workbooks & Journals – eg, CISI’s S&I Review

Training Courses - eg, CISI’s Investment Principles & Risk

Workshops

CPD Events - eg, CISI’s Founders’ Series

Seminars

Conferences - eg, CISI’s Annual Conference

Verifiable eLearning - eg, CISI’s Professional Refresher

Exams

Lectures – eg, CISI Annual Lecture

Professional Interest Forums – eg, CISI’s Wealth Management Forum

Exam Training Courses – eg, through CISI Accredited Training Providers

Verifiable Webcasts – eg, CISI TV

Company Briefings/Updates / Team meetings with an explicit briefing remit

– eg, with external fund managers, stock meetings with equity specialists

Syllabus Exam Panel – eg, CISI’s exam panels

Verifiable Podcasts – eg, CISI TV

Verifiable Live Webstreams

46


CPD audit requirementsThe CISI audits a minimum of 20% of CPD logged on a scheme and those of accredited CPD schemes, which will include at least 10% of retail investment advisers annually, an FSA regulatory requirement under the RDR. By using the CISI CPD scheme and applying for an SPS, advisers agree to be audited.

A typical CISI audit takes around three months to complete from the end of the CPD year. The CISI provides 28-days grace at the end of the end of the CPD year, to allow the logging of any undeclared CPD that has taken place within that year, to be logged. Once selected for audit, the member has 30 days to generate an audit pack and return the pack to the CISI for audit. On occasions, the CISI needs to request clarification on the contents audit pack or additional evidence from a member and this can lengthen the audit process. Details of the audit process are found in the CISI CPD audit process flowchart on page 47.

Given the timescales involved with auditing CPD, the CISI cannot hold off from issuing an SPS while the member’s CPD pack is being audited. As such, as long as the RDR CPD requirements have been provisionally met, and all other SPS criteria have been demonstrated, the CISI will issue an SPS to advisers upon completion of the processing of their application.

If an adviser is subsequently found to have failed an audit, their SPS may be then suspended or withdrawn – please see page 17 for more details as to situations where the CISI may reject an SPS application, or suspend or withdraw an SPS.

Details of the evidence required by the CISI for auditing purposes can be found in the CISI CPD Scheme Auditing – Guidelines on pages 48 and 49. Evidence relating to your CPD activities can be uploaded to your CISI CPD log on an on-going basis. Full details of the CISI’s CPD approach to auditing can be found on the CISI CPD website and in the CISI CPD booklet.

CISI accreditation of a firm’s own schemeThe CISI also offers firms the opportunity to have their own CPD schemes accredited if they become Corporate Supporters of the CISI.

For further information contact [email protected]

47


CISI CPD audit process

ü

Audit pack ratified by CISI Audit Panel

Pass certificate issued to member

if audit passed

A member has 365 days in

which to complete their 35 hours CPD

before their CPD year ends

28-day ‘grace period’ before log

is closed

Random 20% of recently closed

CPD logs selected for audit

Returned audit pack evidence assessed and passed to CISI Audit Panel if

complete

Member informed of audit result

Audit pack sent by email to member

with 30-day return deadline

48


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ent t

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the

even

t dat

e an

d th

e du

ratio

n of

the

clai

mab

le C

PD h

ours

from

th

e ev

ent

• CI

SI p

ro-fo

rma

cert

ifica

te c

ompl

eted

by

the

even

t pro

vide

r

• Ce

rtifi

cate

of c

ompl

etio

n/pa

ss fr

om th

e el

earn

ing

prov

ider

con

firm

ing

your

nam

e, th

e ac

tivity

title

, dat

e, d

urat

ion

and

the

scor

e/gr

ade

achi

eved

• O

ffici

al c

onfir

mat

ion

lett

er/e

mai

l fro

m th

e el

earn

ing

prov

ider

con

firm

ing

your

nam

e, th

e ac

tivity

title

, dat

e, d

urat

ion

and

the

scor

e/gr

ade

achi

eved

(if a

ppro

pria

te)

• Ce

rtifi

cate

of a

tten

danc

e co

nfirm

ing

your

nam

e, th

e ev

ent t

itle,

the

even

t dat

e an

d th

e du

ratio

n of

the

clai

mab

le C

PD h

ours

from

the

even

t•

Offi

cial

con

firm

atio

n of

att

enda

nce

lett

er/e

mai

l fro

m y

our H

R, T

rain

ing

or C

ompl

ianc

e de

part

men

t con

firm

ing

your

nam

e, th

e ev

ent t

itle,

the

even

t dat

e an

d th

e du

ratio

n of

the

clai

mab

le C

PD h

ours

from

the

even

t•

CISI

pro

-form

a ce

rtifi

cate

com

plet

ed b

y th

e ev

ent p

rovi

der

• Ce

rtifi

cate

of a

tten

danc

e co

nfirm

ing

your

nam

e, th

e ev

ent t

itle,

the

even

t dat

e an

d th

e du

ratio

n of

the

clai

mab

le C

PD h

ours

from

the

even

t•

Offi

cial

con

firm

atio

n of

att

enda

nce

lett

er/e

mai

l fro

m th

e ev

ent p

rovi

der c

onfir

min

g yo

ur

nam

e, th

e ev

ent t

itle,

the

even

t dat

e an

d th

e du

ratio

n of

the

clai

mab

le C

PD h

ours

from

th

e ev

ent

• CI

SI p

ro-fo

rma

cert

ifica

te c

ompl

eted

by

the

even

t pro

vide

r

Una

ccep

tabl

e Ev

iden

ce

• Co

nfirm

atio

n of

the

exam

boo

king

• Ex

am in

voic

e

• Co

nfirm

atio

n of

you

r boo

king

from

the

even

t pr

ovid

er•

Your

resp

onse

con

firm

ing

your

inte

ntio

n to

att

end

• Co

py o

f the

eve

nt p

rogr

amm

e •

Copy

of t

he e

vent

invi

tatio

n•

Copy

of t

he e

vent

invo

ice

• Ca

lend

ar/d

iary

ent

ry s

cree

ngra

b •

Copy

of t

he e

vent

slid

es o

r not

es

• En

try

from

you

r int

erna

l lea

rnin

g sy

stem

that

doe

s no

t con

tain

any

act

ivity

dur

atio

n in

form

atio

n•

Blan

k ce

rtifi

cate

of c

ompl

etio

n

• Co

nfirm

atio

n of

you

r boo

king

from

the

even

t pr

ovid

er•

Your

resp

onse

con

firm

ing

your

inte

ntio

n to

att

end

• Co

py o

f the

eve

nt p

rogr

amm

e •

Copy

of t

he e

vent

invi

tatio

n•

Cale

ndar

/dia

ry e

ntry

scr

eeng

rab

• Co

py o

f the

eve

nt s

lides

or n

otes

• Co

nfirm

atio

n of

you

r boo

king

from

the

even

t pr

ovid

er•

Your

resp

onse

con

firm

ing

your

inte

ntio

n to

att

end

• Co

py o

f the

eve

nt p

rogr

amm

e •

Copy

of t

he e

vent

invi

tatio

n•

Copy

of t

he e

vent

invo

ice

• Ca

lend

ar/d

iary

ent

ry s

cree

ngra

b •

Copy

of t

he e

vent

slid

es o

r not

es

Act

ivit

y

Sitt

ing

non-

CISI

exa

ms

Att

endi

ng n

on-C

ISI e

vent

s (C

PD e

vent

s, Tr

aini

ng C

ours

es, W

orks

hops

, Sem

inar

s, Co

nfer

ence

s, PI

Fs, E

xam

Tra

inin

g Co

urse

s an

d Le

ctur

es)

Use

of n

on-C

ISI e

lear

ning

tool

s

Att

endi

ng in

-hou

se b

riefin

gs o

r upd

ates

Att

endi

ng e

xter

nal b

riefin

gs o

r upd

ates

CIS

I CPD

Sch

eme

Aud

iting

– g

uid

elin

es fo

r acc

epta

ble

& u

nacc

epta

ble

supp

ortin

g ev

iden

ce fo

r act

iviti

es n

ot a

utom

atic

ally

logg

ed b

y th

e C

ISI

49


Acc

epta

ble

Evid

ence

• A

cop

y of

the

exam

cer

tifica

te a

ccom

pani

ed b

y a

confi

rmat

ion

of th

e ex

am d

urat

ion

from

th

e ex

am p

rovi

der

• O

ffici

al re

sults

con

firm

atio

n le

tter

/em

ail f

rom

the

exam

pro

vide

r con

firm

ing

the

exam

tit

le, d

ate,

dur

atio

n an

d th

e sc

ore/

grad

e yo

u ac

hiev

ed

• Ce

rtifi

cate

of a

tten

danc

e co

nfirm

ing

your

nam

e, th

e ev

ent t

itle,

the

even

t dat

e an

d th

e du

ratio

n of

the

clai

mab

le C

PD h

ours

from

the

even

t•

Offi

cial

con

firm

atio

n of

att

enda

nce

lett

er/e

mai

l fro

m th

e ev

ent p

rovi

der c

onfir

min

g yo

ur

nam

e, th

e ev

ent t

itle,

the

even

t dat

e an

d th

e du

ratio

n of

the

clai

mab

le C

PD h

ours

from

th

e ev

ent

• CI

SI p

ro-fo

rma

cert

ifica

te c

ompl

eted

by

the

even

t pro

vide

r

• Ce

rtifi

cate

of c

ompl

etio

n/pa

ss fr

om th

e el

earn

ing

prov

ider

con

firm

ing

your

nam

e, th

e ac

tivity

title

, dat

e, d

urat

ion

and

the

scor

e/gr

ade

achi

eved

• O

ffici

al c

onfir

mat

ion

lett

er/e

mai

l fro

m th

e el

earn

ing

prov

ider

con

firm

ing

your

nam

e, th

e ac

tivity

title

, dat

e, d

urat

ion

and

the

scor

e/gr

ade

achi

eved

(if a

ppro

pria

te)

• Ce

rtifi

cate

of a

tten

danc

e co

nfirm

ing

your

nam

e, th

e ev

ent t

itle,

the

even

t dat

e an

d th

e du

ratio

n of

the

clai

mab

le C

PD h

ours

from

the

even

t•

Offi

cial

con

firm

atio

n of

att

enda

nce

lett

er/e

mai

l fro

m y

our H

R, T

rain

ing

or C

ompl

ianc

e de

part

men

t con

firm

ing

your

nam

e, th

e ev

ent t

itle,

the

even

t dat

e an

d th

e du

ratio

n of

the

clai

mab

le C

PD h

ours

from

the

even

t•

CISI

pro

-form

a ce

rtifi

cate

com

plet

ed b

y th

e ev

ent p

rovi

der

• Ce

rtifi

cate

of a

tten

danc

e co

nfirm

ing

your

nam

e, th

e ev

ent t

itle,

the

even

t dat

e an

d th

e du

ratio

n of

the

clai

mab

le C

PD h

ours

from

the

even

t•

Offi

cial

con

firm

atio

n of

att

enda

nce

lett

er/e

mai

l fro

m th

e ev

ent p

rovi

der c

onfir

min

g yo

ur

nam

e, th

e ev

ent t

itle,

the

even

t dat

e an

d th

e du

ratio

n of

the

clai

mab

le C

PD h

ours

from

th

e ev

ent

• CI

SI p

ro-fo

rma

cert

ifica

te c

ompl

eted

by

the

even

t pro

vide

r

Una

ccep

tabl

e Ev

iden

ce

• Co

nfirm

atio

n of

the

exam

boo

king

• Ex

am in

voic

e

• Co

nfirm

atio

n of

you

r boo

king

from

the

even

t pr

ovid

er•

Your

resp

onse

con

firm

ing

your

inte

ntio

n to

att

end

• Co

py o

f the

eve

nt p

rogr

amm

e •

Copy

of t

he e

vent

invi

tatio

n•

Copy

of t

he e

vent

invo

ice

• Ca

lend

ar/d

iary

ent

ry s

cree

ngra

b •

Copy

of t

he e

vent

slid

es o

r not

es

• En

try

from

you

r int

erna

l lea

rnin

g sy

stem

that

doe

s no

t con

tain

any

act

ivity

dur

atio

n in

form

atio

n•

Blan

k ce

rtifi

cate

of c

ompl

etio

n

• Co

nfirm

atio

n of

you

r boo

king

from

the

even

t pr

ovid

er•

Your

resp

onse

con

firm

ing

your

inte

ntio

n to

att

end

• Co

py o

f the

eve

nt p

rogr

amm

e •

Copy

of t

he e

vent

invi

tatio

n•

Cale

ndar

/dia

ry e

ntry

scr

eeng

rab

• Co

py o

f the

eve

nt s

lides

or n

otes

• Co

nfirm

atio

n of

you

r boo

king

from

the

even

t pr

ovid

er•

Your

resp

onse

con

firm

ing

your

inte

ntio

n to

att

end

• Co

py o

f the

eve

nt p

rogr

amm

e •

Copy

of t

he e

vent

invi

tatio

n•

Copy

of t

he e

vent

invo

ice

• Ca

lend

ar/d

iary

ent

ry s

cree

ngra

b •

Copy

of t

he e

vent

slid

es o

r not

es

Act

ivit

y

Sitt

ing

non-

CISI

exa

ms

Att

endi

ng n

on-C

ISI e

vent

s (C

PD e

vent

s, Tr

aini

ng C

ours

es, W

orks

hops

, Sem

inar

s, Co

nfer

ence

s, PI

Fs, E

xam

Tra

inin

g Co

urse

s an

d Le

ctur

es)

Use

of n

on-C

ISI e

lear

ning

tool

s

Att

endi

ng in

-hou

se b

riefin

gs o

r upd

ates

Att

endi

ng e

xter

nal b

riefin

gs o

r upd

ates

Acc

epta

ble

Evid

ence

• O

ffici

al c

onfir

mat

ion

lett

er/e

mai

l fro

m th

e ev

ent p

rovi

der c

onfir

min

g yo

ur p

artic

ipat

ion

and

the

dura

tion

of y

our p

rese

ntat

ion

and

a co

py o

f the

pre

sent

atio

n us

ed w

ith a

co

nfirm

atio

n of

aut

hors

hip

• O

ffici

al c

onfir

mat

ion

lett

er/e

mai

l fro

m th

e ev

ent p

rovi

der c

onfir

min

g yo

ur p

artic

ipat

ion

and

the

dura

tion

of y

our r

ole

as c

hair

pers

on.

• O

ffici

al c

onfir

mat

ion

of p

artic

ipat

ion

lett

er/e

mai

l fro

m th

e re

leva

nt b

ody/

com

mitt

ee/

boar

d/pa

nel c

onfir

min

g yo

ur a

tten

danc

e th

e da

te a

nd th

e du

ratio

n of

the

clai

mab

le C

PD

hour

s fr

om th

e ac

tivity

• Co

py o

f the

min

utes

not

ing

your

att

enda

nce,

the

date

and

the

dura

tion

of th

e cl

aim

able

CP

D h

ours

from

the

activ

ity

• Co

py o

f sup

plie

d le

arni

ng m

ater

ial w

ith p

roof

of a

utho

rshi

p•

Offi

cial

con

firm

atio

n le

tter

/em

ail f

rom

the

publ

ishe

r of t

he m

ater

ials

con

firm

ing

your

au

thor

ship

• O

ffici

al c

onfir

mat

ion

from

HR/

Trai

ning

con

firm

ing

your

par

ticip

atio

n, th

e co

nten

t and

the

dura

tion

of th

e ac

tivity

• Co

nfirm

atio

n le

tter

/em

ail f

rom

men

tee/

trai

nee

outli

ning

the

date

, tim

e du

ratio

n an

d co

nten

t cov

ered

• O

ffici

al c

onfir

mat

ion

from

HR/

trai

ning

con

firm

ing

your

par

ticip

atio

n, th

e co

nten

t and

the

dura

tion

of th

e ac

tivity

Una

ccep

tabl

e Ev

iden

ce

• In

vita

tion

to s

peak

/logi

stic

al a

rran

gem

ents

• Co

py o

f the

pre

sent

atio

n th

at d

oes

not h

ave

proo

f of a

utho

rshi

p (a

bla

nk n

amel

ess/

date

less

pr

esen

tatio

n)•

Cale

ndar

/dia

ry e

ntry

scr

eeng

rab

• A

cop

y of

the

even

t bro

chur

e/fly

er th

at in

dica

tes

you

pres

ente

d at

the

even

t and

incl

udes

you

r na

me

in p

rint

• In

vita

tion

to c

hair/

logi

stic

al a

rran

gem

ents

• Ca

lend

ar/d

iary

ent

ry s

cree

ngra

b•

A c

opy

of th

e ev

ent b

roch

ure/

flyer

that

indi

cate

s yo

u ch

aire

d at

the

even

t and

incl

udes

you

r nam

e in

prin

t

• Ca

lend

ar/d

iary

ent

ry s

cree

ngra

b•

Your

resp

onse

con

firm

ing

your

inte

ntio

n to

att

end

• Bo

okin

g ac

know

ledg

emen

t of b

ooki

ng fr

om

activ

ity o

rgan

iser

• Co

py o

f the

sup

plie

d le

arni

ng m

ater

ial t

hat d

oes

not h

ave

any

proo

f of a

utho

rshi

p•

A c

opy

of a

lett

er/e

mai

l com

mis

sion

ing

the

lear

ning

mat

eria

ls

• In

vita

tion

to s

peak

/logi

stic

al a

rran

gem

ents

• C

alen

dar/

diar

y en

try

scre

engr

ab

• Ca

lend

ar/d

iary

ent

ry s

cree

ngra

b

Act

ivit

y

Pres

entin

g at

an

indu

stry

rele

vant

non

-CI

SI e

vent

(CPD

eve

nts,

Trai

ning

Cou

rses

, W

orks

hops

, Sem

inar

s, Co

nfer

ence

s, PI

Fs,

Exam

Tra

inin

g Co

urse

s, Le

ctur

es a

nd

Brie

fings

)

Chai

ring

at a

n in

dust

ry re

leva

nt n

on-C

ISI

even

t (CP

D e

vent

s, Tr

aini

ng C

ours

es,

Wor

ksho

ps, S

emin

ars,

Conf

eren

ces,

PIFs

, Le

ctur

es a

nd B

riefin

gs)

Mem

bers

hip

of a

n in

dust

ry re

leva

nt

boar

d, p

anel

or c

omm

ittee

Cont

ribut

ing

tow

ards

lear

ning

mat

eria

ls

Trai

ning

or b

riefin

g st

aff o

n in

dust

ry

rele

vant

topi

cs

Coac

hing

men

torin

g an

d in

duct

ing

staff

on

indu

stry

rele

vant

topi

cs

50


Discipline The FSA’s approach to disciplineThe FSA still expects consumers who have a complaint to first contact the relevant firms or ultimately the Financial Ombudsman Service (FOS), however, it notes that in some cases it may be appropriate for customers to complain to the investment advisers’ Accredited Body or the FSA directly.

The CISI’s approach to discipline for membersThe CISI’s disciplinary procedures have been revised so that, at each step, there is a review of the matter under consideration to ensure that the process is transparent and fair.

There is lay representation, technical specialists if needed, and also representatives of the CISI membership on all disciplinary and appeal panels.

As is currently the case, the CISI will have no regulatory jurisdiction over the performance of members, which remains the responsibility of the FSA.

Regulatory or other bodies Members of the public

Complaints Review Panel

CISI Disciplinary Panel

CISI Appeals Panel

Secretary to the Complaints Review Panel

Companies

51


EthicsThe CISI’s promotion of trust and integrityIntegrity and ethics are central to the mission and philosophy of the CISI. Consequently we are well placed to help meet the FSA’s goals of enhanced professionalism and consumer confidence with a variety of highly regarded products and services.

These include the IntegrityMatters online workshop and test, the Integrity at Work interactive workshop, the new elearning Professional Refresher Integrity and Ethics unit and our Grey Matters ethical dilemmas. These dilemmas are included in each edition of the Securities & Investment Review and in three books of case studies, Integrity at Work volumes 1, 2 and 3.

The CISI’s Code of ConductThe genesis of the CISI Code of Conduct was June 2005 in conjunction with the Worshipful Company of International Bankers. A revised Code of Conduct was effective from 1 February 2011, and a copy appears below and will be on the reverse of every Statement of Professional Standing issued.

1. To act honestly and fairly at all times when dealing with clients, customers and counterparties and to be a good steward of their interests, taking into account the nature of the business relationship with each of them, the nature of the service to be provided to them and the individual mandates given by them.

2. To act with integrity in fulfilling the responsibilities of your appointment and to seek to avoid any acts, omissions or business practices which damage the reputation of your organisation or the financial services industry.

3. To observe applicable law, regulations and professional conduct standards when carrying out financial service activities, and to interpret and apply them to the best of your ability according to principles rooted in trust, honesty and integrity.

4. To observe the standards of market integrity, good practice and conduct required or expected of participants in markets when engaging in any form of market dealings.

5. To be alert to and manage fairly and effectively and to the best of your ability any relevant conflict of interest.

6. To attain and actively manage a level of professional competence appropriate to your responsibilities, to commit to continuing learning to ensure the currency of your knowledge, skills and expertise and to promote the development of others.

7. To decline to act in any matter about which you are not competent unless you have access to such advice and assistance as will enable you to carry out the work in a professional manner.

8. To strive to uphold the highest personal and professional standards.

52


The Pinnacle of Professionalism: Chartered designation The CISI has more than 3,500 personally Chartered senior members, at Chartered MCSI or Chartered Fellow (Chartered FCSI) levels. These outstanding practitioners commit to not only maintaining their competence but to upholding the very highest standards of professionalism, excellence and integrity.

To attain Chartered Fellowship (Chartered FCSI) you must have one of the CISI’s own qualifications at level 6 or above, together with other evidence of CPD and of compliance with our standards of integrity through passing our IntegrityMatters elearning module at an ‘A’ grade.

To attain Chartered Membership (Chartered MCSI) you can have a combination of qualifications and logged CPD years, together with passing our IntegrityMatters elearning module at an ‘A’ grade. Please see cisi.org/mindividualcharter for more details.

New for wealth managers is the designation Chartered Wealth Manager Applicants will be awarded the designation Chartered Wealth Manager by:

• possessing a level 6 or above, as defined by Ofqual, Wealth Management qualification, which is recognised by the UK Regulator (FSA), ie, on the RDR approved qualifications list; and

• being members of the CISI, at MCSI, Chartered MCSI, FCSI, or Chartered FCSI level and having held CISI membership for a minimum of one year (note MCSI is the highest level of direct entry to the CISI and the other membership grades can be accessed through CPD once MCSI is conferred); and

• passing IntegrityMatters with an ‘A’ grade (the benchmark for all Charter holders); and

• completing a verifiable RDR equivalent CPD requirement (35 hours, minimum 21 hours structured learning) .

In order to maintain the Chartered Wealth Manager designation, applicants must continue to maintain their CISI membership and, if in the RDR regime, continue to meet the RDR requirements in full. We also want to encourage applicants to seek to become Chartered MCSI/Chartered FCSI if they do not possess either of those categories of membership.

NB: The designation is open to suitably qualified applicants not subject to the RDR requirements eg, international applicants. Further guidance on how to use the designation will follow. There can be no amendments to this designation’s title.

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CISI RDR Implementation Guide ©CISI 2011What is the cost of not being a CISI

member?CPD Scheme* £100 CPD Seminars £50 (per event)CISI TV* £100Annual Lecture* £50Professional Interest Forums* £50 (per forum) Securities & Investment Review £120 (annually) IntegrityMatters £40Professional Refresher £150Infolink* £50

Regulatory Update (online version) £120 (annually)Statement of Professional Standing £125

Total: £955

...and the cost of CISI membership including

all of the above?From only £60†

(as of April 2011)

You do the maths

+44 20 7645 0650cisi.org/membership

[email protected]

* These benefits cannot be purchased individually and are not available to non-members† £60 for first year in 2011/12 for ACSI, MCSI - £165

From 1 April 2011: Discount available for membership fees paid by direct debit

© September 2011

Chartered Institute for Securities & Investment, 8 Eastcheap, London EC3M 1AE

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recorded or otherwise without the prior permission of the copyright owner.

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A company limited by guarantee and registered in England and Wales number RC000834

A charity registered in England and Wales (number 1132642) and Scotland (number SC040665)

More InformationThis CISI RDR booklet provides an overview of the RDR requirements and related subjects. Readers may wish to obtain more information from the following CISI webpages and by contacting the Institute.

General InformationWeb: cisi.org

RDR informationGeneral web page: cisi.org/rdrEmail: [email protected]

CISI CPD and gap-fill logcisi.org/cpdloghelp

CISI gap-fill informationDownloadable templates: cisi.org/gapfilltemplates Web guidance: cisi.org/gapfillguide

SPSWeb: cisi.org/rdrsps Application: [email protected] SPS terms and conditions: cisi.org/spstandcRDR FAQs: cisi.org/faqs

FSA RDR relevant weblinksPS 11/1: www.fsa.gov.uk/pubs/policy/ps11_01.pdfFSA RDR roadshows: www.fsa.gov.uk/pubs/guidance/gc11_20.pdf

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