The ISO 22222 Standard is the first service based standard of its type specifically designed to outline the professional practice standards for a financial planner. This standard is independent of designations and is designed to document the operational practices necessary for a financial planner to meet.
The ISO standard has been recognized in a number of countries, most notably in the UK where the Financial Services Authority (FSA) is endorsing the standard as Instituto de Planificacion Financiera in Argentina.
Purpose: Bring benefits of the financial planning process to more consumers in more countries (Intro.)
Scope: Comprehensive personal financial planning delivered to consumers by individual professional practitioners (1)
Definition of PFP: Process designed to enable a consumer to achieve personal financial goals (3.16)
Professional Ethics: 10 Principles (5.2)
- Integrity – Priority of client’s interest – Due care
- Transparency: Disclose relevant facts/interests/limitations
- Professionalism/sound practices/compliance
PFP Service Process
- 4.2 Establish and define client-planner relationship
- 4.3 Gather client data, determine goals/expectations
- 4.4 Analyze/evaluate client situation
- 4.5 Develop plan/present the plan
- 4.6 Implement recommendations
- 4.7 Monitor progress/update plan
- 6.1 Broad knowledge of consumer economics plus relevant specific local knowledge
- 6.2 25 listed competences aligned with six steps of the PFP service process
- 6.3 Evaluation: Comprehensive
- 6.4 Able to demonstrate continuing competence in all requirements
- 6.4 Continuing education expected
- 7.3.1 Required: experience in the six step service process of personal financial planning
- 7.3.2 Requirement: 3 years’ total experience , including at least 2 years in the six step process
- 7.3.2 Equivalent experience credit of up to 1 year for work in certain other relevant roles.
- 8.1 Presentation of Claim
- 8.2 Scope of Claim
- 8.3 Basis of Claim
3 possible “bases” (sources) for claim:
- 1st party (self)/2nd party/3rd party (certifier)
- For consumer confidence, use of accredited 3rd party certifier recommended
- ISO compliant certifiers (ISO 17024) preferred
- Uniform, documented assessment process in all cases.
- Assessment must address all provisions of ISO 22222.
- Presentations: use ISO disclosure format, state basis, describe assessment method,