FAQs
Q1. Can a sole trader who holds a CII Chartered title apply for Corporate status?
A: An unincorporated sole trader does not need to apply at all. By definition he or she is a Chartered title holder.
Q2. Can both limited liability companies and partnerships obtain Chartered status?
A: Yes
Q3. If at least half of a firm’s executive directors or partners in a partnership have to hold a Chartered title is there a minimum number of directors/partners a firm has to have?
A: No, but at least one director or partner must hold the CII Chartered title for which corporate status is requested and that director or partner must be the Responsible Member.
Q4. Can executive directors/partners use other professional qualifications to qualify and if so what qualifications are acceptable?
A: The CII will recognise Chartered titles from other awarding bodies as comparable to the CII’s individual Chartered title providing the title held is directly relevant to the individual’s principle area of work and the awarding Chartered body concerned has a Code of Conduct (or Conduct of Ethics and Conduct) comparable to that of the CII. Directly relevant to the individual’s principle area of work means that a firm’s accountant who is a Chartered Accountant may be counted towards the 50% requirement, provided that the accountant is only acting in this capacity (accountant) for the company and does not advise clients, either as a broker in a firm of Chartered Insurance Brokers or a Financial Planner in a firm of Chartered Financial Planners. A listing of the Chartered titles which the CII will automatically recognise as equivalent can be found at cii.co.uk/chartered – other organisations will be considered on application.
Q5. Can a single firm hold more than one corporate Chartered title?
A: In accordance with the Bye-laws of the CII it is only permissible for a company or partnership to describe itself using the plural of a single chartered title.
Q6. Will there be a charter marque that firms can use on their marketing material?
A: Yes, there is both a marque and a form of words that can be used on company stationery, company signage, web, etc. Full brand guidelines details can be found online at cii.co.uk/chartered
Q7. Are firms to be audited/inspected by the CII?
A: There are no current provisions relating to audit and or inspections. However the scheme is based on such provisions and requirements as may be introduced by the CII from time to time. The CII reserves the right to introduce such provisions in relation to the audit or other analogous procedures, of chartered title holders as it sees fit.
However, firms will submit an annual return confirming their compliance with the eligibility criteria (number of Chartered title holders; 90% customer-facing staff as members; etc). The CII will also monitor any complaints received from the public, etc.
Q8. How will the CII handle consumer complaints against a Chartered firm? What redress will the CII provide to the consumer if a complaint against a Chartered firm or member is upheld?
A: As the CII is not the industry regulator, consumer complaints e.g. regarding policy coverage or the performance of an investment product will be dealt with by the existing mechanisms of the sector’s complaints bodies and regulators such as by reference to the FSA or FOS. In every case however reference must be made to the firm concerned in the first instance. In so far as a complaint concerns an individual members behaviour however, a breach of the CII’s Code of Ethics and Conduct will be dealt with by reference to the CII’s Disciplinary Procedures (see Guide to Member Complaints on the “Contact Us” section of the web site cii.co.uk/cii/about/contactus
Q9. If 90% of customer facing staff have to be members of the CII is this not simply a way for the CII to get more members and increase its revenue? Surely companies already have their own internal standards to maintain?
A: No, this is about ensuring a common standard across the market which can be relied upon by anyone who transacts with the firm holding the title. The fact that all staff are required to comply with a code of ethics and conduct reinforces ethical practice. The pricing model was developed in consultation with the industry through the CII’s faculties and societies.
Q10. What is meant by ‘customer-facing staff’?
A: Staff that have direct customer contact. The definition has deliberately been kept simple and straightforward. However any direct customer contact counts. There is no minimum (see Question 11 below). This only applies to staff who have customer contact in respect of giving financial advice. Someone merely answering the phone when a colleague is unavailable or a receptionist/secretary does not count.
Q11. Do the customer facing staff have to be authorized individuals or can they just be PAs who are members of the PFS?
A: There is no requirement for customer facing staff to be authorised individuals, Cert PFS or above, just ordinary members of the CII.
Q12. Do the individuals have to have a set amount of client contact to qualify and are other members of staff e.g. secretaries and filing staff, included in the 90%?
A: There is no minimum amount of customer contact i.e. any direct customer contact counts. However it is for the firm to self certify who does and does not have direct customer contact. It is not possible to say from job title alone.
Q13. What will the cost be?
A: There is tiered fee structure based on headcount. The fees have been kept at a level which reflects the costs to the CII in administering the scheme and also recognises the commitment made by firms in supporting CII/PFS membership/qualifications to-date. The pricing model was developed in consultation with the industry through the CII’s Professional Standards Board, faculties and societies. In any event the CII is a not for profit organization and so any surplus which did arise by definition is reinvested into the Institute and the services, products and examinations it develops.
Q14. What if a Chartered Financial Planner leaves a firm and the firm falls below the 50% requirement? How long do they have before they lose Chartered status?
A: The responsibility to fulfill the 50% criterion rests with the firm concerned which will be expected to act to rectify the situation as a matter of urgency. Every case will have its distinguishing features and it is not possible to prescribe objectively a set “period of grace”. The CII will consider each case on the basis of treating fairly the interests of the public, the interests of the CII and the interests of the firm.
Q.15 Can I pay by credit card?
A: Yes, but not over the telephone, you can complete the details on a separate sheet with your application.
Q.16 What if the 50% requirement is not met because there are some directors who are retired or ‘silent’ partners?
A: Providing that retired or silent partners are genuinely non executive (i.e. have no day to day say in running the business) they may be excluded from the 50% calculation.
Q.17 What if we do not have audited accounts?
A: In effectively licensing our trade mark (Chartered Financial Planner or Chartered Insurance Broker) to a firm we are endorsing the activities of that entity and hence there is a small risk to the reputation of the CII. The requirement for the production of annual accounts is a general one and it is intended to provide some corroborative evidence of professional standards applied by the firm. Clearly it is good practice for all firms to produce accounts to an appropriate standard, although not all are required (small limited liability companies for example) to be audited. However more specifically we require the information to provide the CII with corroborating data on the identities of the partners/executive directors and the average numbers of employees within the business. We need to be as sure as we can that a firm conforms with the application conditions by undertaking such corroborating checks of the other data provided as may be available. As a corollary we also need to demonstrate that we have applied as much due diligence to the application process as is proportionate in the circumstances. This is not only for our benefit. It is also for those who have gone through the process, been granted chartered status and have the right to expect us to look after their interests in protecting “the brand”.
Whilst 12 months accounts are a minimum we will consider accounts submitted in other forms when audited accounts are not a statutory or regulatory requirement. Please note however that this may delay the application process.
If audited accounts are not a statutory/regulatory requirement for a small company we will accept accounts prepared by their own accountant for submission to Companies House. The accountant however will need to be a qualified by a recognised accountancy body.
We do accept applications from newly formed firms where no accounts are available, providing the company is authorized by the FSA and subject to an undertaking that the first year's accounts are submitted as soon as produced.
Q.18 I have a number of part time staff, do they all have to become members?
A: Yes, if they are customer facing.
Q.19 Your guidelines state that other chartered titles are comparable to the CII’s chartered title so why haven’t I been given the equal number of credits for chartered title with the CII?
A: Because it is comparable in terms of professionalism and a commitment to a code of ethics and conduct. There may also be no overlap of syllabus.
Q.20 Is this offer open to networks?
A: No because a network is a collection of individual firms and it is at that level that we must look for compliance with any application.
Q.21 What is the definition of an executive director?
A: Directors to be considered in the 50% calculation are all those registered at Companies House, unless they have been specifically appointed on a non-executive basis.
If directors run the company on a day to day basis and employees are accustomed to act in accordance with their instructions, they are deemed to be executive directors. In the case of a limited liability company all the directors are executive unless they have been appointed in a non-executive capacity.
Non-executive directors have no executive role i.e. they do not run the business on a day to day basis. Their role is to bring a different perspective to the board and make a creative contribution to the board by providing objective criticism. Non-executive directors are appointed to that position (they will have a letter of appointment designating them as such).
Q.22 Why is the rationale behind the current pricing levels?
A: The pricing model was developed in consultation with the industry through the CII’s Professional Standards Board, faculties and societies. The fee has been set to cover the administration costs associated with the scheme. The work includes verifying applicant’s details, confirming eligibility, producing and issuing certificates and enforcing the scheme’s rules. There is also a wealth of supporting literature, a dedicated website and a “live” online directory.
We will also be heavily promoting the scheme in the coming months and years to the public to raise awareness and to showcase that title-holders are the leaders in their field.
The CII is a not-for-profit organisation and so any surplus which did arise by definition is reinvested into the CII and the services, products and examinations it develops.
We are confident that corporate Chartered status will deliver superb value to those firms which attain it. They will distinguish themselves from the bulk of the market and become part of an elite tier of advisers. Their status will be recognised by customers and fellow professionals and the effect will be to boost both their professional standing and their potential for commercial success.
Q.23 Should self employed consultants be included?
A: No because they are not on the staff and by definition are transient in nature being able to be turned on and off by a business at will by its executives.
Q24. Can we use the PFS logo on our website or on marketing material?
A. It is not permitted to use the PFS logo on any corporate stationery/marketing material or corporate website. For the full list of logo guidelines, please click here.
Q25. Is there anywhere my company can use the PFS logo?
A. No. Membership to the PFS is only available to individuals. Thus an organisation cannot be a member of the PFS. Therefore meaning under no circumstance can an organisation use the PFS logo. For the full list of logo guidelines, please click here.
