CISI Guidance for Regulators and Firms

ESMA
“Final Report: Guidelines for the assessment
of knowledge and competence”
CISI Guidance for Regulators and Firms
Developed to help firms fulfil their obligations
under Articles 24 & 25 of MiFIDII
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Contents
1. Introduction 1
2. About the CISI 2
3. ESMA Final Report:
Guidelines on the assessment of knowledge and competence 3
4. How can the CISI help firms meet ESMA guidelines? 4
i) Qualifications 4
a) For Information Givers 4
- International Introduction to Securities and Investment (IISI) 4
b) For Investment Advisers 9
- International Certificate in Wealth & Investment Management (ICWIM) 9
- International Certificate in Wealth Management (Spain) 14
ii) Continuous Professional Development (CPD) 15
a) CISI CPD Scheme 15
b) Member Benefits 17
fc) CPD Log 18
d) Superuser 18
iii) Business ethics 19
a) CISI Code of Conduct 19
b) Integrity Matters 20
c) Interactive Workshops 20
d) Professional Refresher 20
5. Contact Us 22
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Introduction
Welcome to this guide produced by the Chartered Institute for
Securities & Investment (CISI), which provides information and
practical support surrounding the implications of the “ESMA
Final Report: Guidelines for the assessment of knowledge
and competence” which was released in December 2015 and
comes into effect in January 2017.
This booklet focuses on the requirements in three of the main
areas detailed in the ESMA Guidelines, namely:
1) holding an appropriate qualification;
2) undertaking and being able to demonstrate continuous professional development; and
3) demonstrating adherance to standards of business ethics.
The CISI looks forward to supporting regulators, members, firms and the wider public in the
delivery of these new standards.
The CISI will do everything it can to enable firms to ensure that its staff fully comply with the
ESMA Guidelines. We will provide a cost effective and efficient service to enable firms to monitor
and measure progress of their staff towards meeting the requirements, as well as offering
relevant and timely CPD for individual members.
Simon Culhane, Chartered FCSI
Chief Executive, CISI
Background to the regulatory changes
On 17 December 2015 the European Securities and Markets Authority (ESMA) published its
“Final Report: Guidelines for the assessment of knowledge and competence”, which addresses
the MiFID II requirements set out under Articles 24 and 25. These guidelines will affect staff who,
under MiFID II, are defined as either “giving information” or “giving investment advice”.
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About the CISI
The Chartered Institute for Securities & Investment (CISI) is the professional body of choice for
professionals in the securities, investment, wealth and financial planning sectors in the UK and in
a growing number of major financial centres globally. Formed in 1992 out of the London Stock
Exchange as a not for profit organisation, we have a global community of more than 40,000
members in 116 countries, and last year more than 40,000 CISI exams were sat in 80 countries.
The CISI is proud to work with regulatory authorities in 37 countries. Within the EU, these links
include authorities in Cyrpus, Germany, Greece, Malta, Netherlands and the Republic of Ireland.
Our mission statement is:
“To set standards of professional excellence and integrity for the securities,
investment, wealth and financial planning professionals, providing
qualifications and promoting the highest level of competence to our
members, individuals and firms.”
By professional excellence or professionalism, we mean the combination of knowledge, skills and
behaviour.
Knowledge
Gaining the initial
competence to do your
job through professional
qualifications
Professionalism
Skills
Continuing Professional
Development (CPD) and ongoing
learning which enables you to maintain
competence through professional
body membership
Behaviour
Upholding the highest standards
of integrity by signing up to a
professional body’s code of conduct
We support these standards through our offerings in the areas of qualifications, continued
learning, and integrity & ethics - areas where we are recognised as a premier body within the
industry.
This brochure focuses on all three components, and neatly aligns to the ESMA “Final Report:
Guidelines for the assessment of knowledge and competence” published on 17 December 2015.
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ESMA Final Report: Guidelines on the assessment of
knowledge and competence
Under the ESMA guidelines, firms will be required to:
1) Ensure that staff providing relevant services to clients are assessed through the successful
completion of an appropriate qualification and have gained appropriate experience in the
provision of relevant services to clients
2a) Carry out an internal or external review, on at least an annual basis, of staff members’
development and experience needs, assess regulatory developments and take any action
necessary to comply with the ESMA requirements. This review should also ensure that
staff possess an appropriate qualification and maintain and update their knowledge and
competence by undertaking continuous professional development
2b) Ensure that they submit to their regulator, on request, records concerning knowledge and
competence of staff providing relevant services to clients
3) Ensure that staff providing relevant services possess the necessary knowledge and
competence to meet relevant regulatory and legal requirements and business ethics
standards
These requirements will be applicable for relevant staff providing either information or
investment advice to clients.
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How can the CISI help firms meet ESMA guidelines?
The CISI has products to meet the requirements set out in the ESMA Guidelines in the areas of
Qualifications, continuous professional development (CPD) and Business Ethics as outlined in the
sections below.
Appropriate Qualifications
Under the ESMA guidelines, firms will be required to:
“Ensure that staff providing relevant services to clients are assessed
through the successful completion of an appropriate qualification
and have gained appropriate experience in the provision of relevant
services to clients”
The CISI offers qualifications appropriate to both Information Givers and Investment Advisers.
Information Givers
The following qualification fully incorporates the ESMA Guidelines for Information Givers:
International Introduction to Securities and Investment (IISI) Award
The International Introduction to Investment qualification provides a comprehensive
introduction to the financial services industry with a specific focus on investments from a
global perspective. It is the first step in the CISI’s qualification pathway, and it is taken by many
practitioners as it is the foundation exam for higher level CISI qualifications.
Who should study the International Introduction to Investment?
It is intended for new entrants and staff who are beginning their career in the financial services
industry. The broad topics covered make the qualification suitable for all staff including, but not
limited to, those giving information about investment products, investment services or ancillary
services.
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Syllabus Summary
• Introduction
• Economic environment
• Financial assets and markets
• Equities
• Bonds
• Derivatives
• Investment funds
• Financial services regulation
• Other financial products
Study
80 hours of study is required for this exam. You can choose to self-study for the exam using the
CISI workbook and elearning or have formal training with one of our Accredited Training Partners
(ATP). To find an ATP visit cisi.org/atp
Assessment
A one-hour exam consisting of 50 multiple-choice questions. The pass mark for the exam is 70%.
The exam is delivered by Computer Based Testing (CBT). Visit cisi.org/cbt to find your nearest
venue.
cisi.org/iintro
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Specific coverage of ESMA guidelines within the International Introduction to
Securities Award Syllabus
ESMA Criteria for knowledge and
competence for staff giving information
about investment products, investment
services or ancillary services
a) Understand the key characteristics,
risk and features of those investment
products available through the firm,
including any general tax implications
and costs to be incurred by the
client in the context of transactions.
Particular care should be taken when
giving information with respect to
products characterised by higher levels
of complexity
b) Understand the total amount of
costs and charges to be incurred by the
client in the context of transactions in
an investment product, or investment
services or ancillary services
CISI Introduction to Securities and Investment
(International) Syllabus
3.2.1 Know the characteristics of fixed-term and
instant-access deposit accounts
3.2.2 Understand the distinction between gross and
net interest payments
3.2.3 be able to calculate the net interest due given
the gross interest rate, the deposited sum, the
period and the tax rate
4.1.3 Understand the risks associated with owning
shares/stock
5.1.1 Understand the characteristics and terminology
of bonds
5.1.3 Know the potential advantages and
disadvantages of investing in government bonds
5.2.3 Know the potential advantages and
disadvantages of investing in corporate bonds
6.5.2 Know the potential advantages and
disadvantages of investing in the derivatives
and commodity markets
7.1.1 Understand the potential advantages and
disadvantages of collective investment
9.1.2 Know the basic features and risk characteristics
of retirement funds:
9.3.1 Understand the characteristics of the mortgage
market
9.4.1 Understand the basic principles of life assurance
3.1.1 Know relevant sources of information for
investment products, costs and charges
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c) Understand the characteristics
and scope of investment services or
ancillary services
1.1.1 Know the role of the following within the financial
services industry: retail banks/commercial banks;
savings institutions; investment banks; private
banks; retirement schemes; insurance companies;
fund managers; stockbrokers; custodians; thirdparty
administrators ; industry trade bodies;
sovereign wealth funds

8.1.2 Understand the main aims and activities of
financial services regulators
d) Understand how financial markets
function and how they affect the value
and pricing of investment products
on which they provide information to
clients
3.5.1 Know the basic structure of the foreign
exchange market
4.1.10 Know the role of stock markets
4.1.11 Know the types and uses of the main global
stock exchange indices
7.3.2 Understand the factors that affect the price of
closed-ended investment companies
e) Understand the impact of economic
figures, national/regional/global
events on markets and on the value
of investment products on which they
provide information
2.1.5 Understand the impact of the following
economic data: gross domestic product;
balance of payments; level of unemployment
2.1.2 Know the role of central banks
4.1.12 Know how shares are traded
7.1.2 Know the difference between active and passive
management
f) Understand the difference between
past performance and future
performance scenarios as well as the
limits of predictive forecasting
3.1.1 Know relevant sources of information for
investment products, costs and charges
5.2.4 Understand the role of credit rating agencies
and the difference between investment and
non-investment grades
g) Understand issues relating to market
abuse and anti-money laundering
8.2.1 Understand the terms that describe the three
main stages of money laundering
8.2.2 Know the action to be taken by those employed
in financial services if money laundering activity
is suspected
h) Assess data relevant to the
investment products on which they
provide information to clients such as
Key Investor Information Documents,
prospectuses, financial statements, or
financial data
3.1.1 Know relevant sources of information for
investment products, costs and charges: Key
investor information documents; prospectuses;
financial statements; financial data
i) Understand specific market
structures for the investment products
on which they provide information
to clients and, where relevant, their
trading venues or the existence of any
secondary markets
1.1.1 Know the role of the following within the
financial services industry: retail banks/
commercial banks; savings institutions;
investment banks; private banks; retirement
schemes; insurance companies; fund
managers; stockbrokers; custodians; third-party
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administrators; industry trade bodies; sovereign
wealth funds
2.1.2 Know the role of central banks
2.1.3 Know how goods and services are paid for and
how credit is created
3.2.1 Know the characteristics of fixed-term and
instant-access deposit accounts
3.3.1 Know the difference between a capital market
instrument and a money market instrument
3.5.1 Know the basic structure of the foreign
exchange market
4.1.8 Know the differences between the primary
market and the secondary market
4.1.10 Know the role of stock markets
4.1.11 Know the types and uses of the main global
stock exchange indices
4.1.12 Know how shares are traded
4.1.13 Understand how settlement takes place
6.5.1 Know the function of a derivatives exchange
and the products traded
7.2.1 Know the characteristics and different types of
open-ended fund/mutual fund
7.3.4 Know how closed-ended investment companies
shares are traded
9.3.1 Understand the characteristics of the mortgage
market
j) Have a basic knowledge of valuation
principles for the type of investment
products in relation to which the
information is provided
4.1.2 Be able to calculate the share dividend yield
4.1.5 Know the different methods of quoting
securities ratios
5.2.2 Be able to calculate the flat yield of a bond
5.2.4 Understand the role of credit rating agencies
and the difference between investment and
non-investment grades
7.3.2 Understand the factors that affect the price of
closed-ended investment companies
7.3.3 Know the meaning of the discounts and
premiums in relation to closed-ended
investment companies
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Investment Advisers
The following qualification fully incorporates the ESMA Guidelines for Investment Advisers:
International Certificate in Wealth & Investment Management (ICWIM)
ICWIM covers the essentials of financial advice, private client asset management, fund
management, advisory functions and investment analysis from a global perspective. It offers an
overview of the range of assets and investment products available in the market.
Candidates will learn about the range of assets and investment products available in the market
and gain the knowledge to provide financial advice and find appropriate solutions to meet the
investment, retirement and protection planning needs for clients.
Who should study the qualification?
ICWIM is suitable for individuals engaged in private client asset management as well as wealth
managers and retail investment advisers.
Syllabus summary
• The financial services industry
• The function of the financial services industry, macroeconomics analysis
• Microeconomic theory and financial markets
• Industry regulation
• Financial services regulation, financial crime and corporate governance
• Asset classes
• Cash, property, bonds, equities, derivatives and commodities
• Fiduciary relationships
• Fiduciary duties, advising clients and determining client needs
• Investment analysis
• Calculating statistics, financial mathematics, fundamental and technical analysis, yields and
ratios and valuations
• Investment planning
• Investment services, investment funds, other investment vehicles including structured
investment funds, hedge funds, private equity, commodity funds and sukuk investments,
risk and return, portfolio construction theories, investment strategies and performance
management
• Lifetime financial provision
• Retirement planning, protection planning, estate planning and trusts, business tax, personal
tax and overseas taxation
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Study
130 hours of study time is recommended and you can self-study for the exam using the CISI
workbook and accompanying elearning material or have formal training with one of our
Accredited Training Partners (ATP). To find an ATP visit cisi.org/atp
Assessment
A two-hour 100 multiple-choice question exam. The pass mark is 70%. The exam is delivered by
Computer Based Testing (CBT). Visit cisi.org/cbt to find your nearest cbt centre.
cisi.org/icwim
10

Specific coverage of ESMA guidelines within the International Certificate in Wealth &
Investment Management (ICWIM) Syllabus
ESMA Criteria for knowledge
and competence for staff giving
investment advice
a) Understand the key characteristics,
risk and features of the investment
products being offered or
recommended, including any general
tax implications to be incurred by the
client in the context of transactions.
Particular care should be taken when
providing advice with respect to
products characterised by higher levels
of complexity
b) Understand the total costs and
charges to be incurred by the
client in the context of the type of
investment product being offered or
recommended and the costs related
to the provision of the advice and any
other related services being provided
CISI International Certificate in Wealth & Investment
Management Syllabus
3.1.1 know the role of money as a financial asset
3.2.1 know the key features of bonds – risk, interest
rate, repayment, trading, nominal value and
market price, coupon, credit rating
3.3.1 know the key features of property investment
3.4.2 understand the benefits of holding shares
3.5.1 know the following characteristics of Futures
3.5.2 know the following characteristics of Options
3.6.1 understand the main features of commodity
markets, and how the physical characteristics,
supply and demand, and storage and
transportation issues influence prices
4.1.1 understand the benefits of collective investment
4.2.1 now the characteristics and application of
Structured investment funds
4.2.2 now the characteristics and application of
Structured investment hedge funds
4.2.3 now the characteristics and application of
Private equity
4.2.4 now the characteristics and application of
commodity funds
4.2.5 now the characteristics and application of Sukuk
investments
5.3.3 understand how investment strategy and
product selection are influenced by: Tax status
5.4.2 understand the direct and indirect taxes as they
apply to individuals
5.1.1 know when fiduciary responsibilities arise
and the main duties and responsibilities of a
financial adviser
5.1.3 Know the extent of an adviser’s duty to disclose
material information about a recommended
investment
5.2.7 know the requirement for disclosure of charges
and commission
5.2.9 know the requirement for product disclosure
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c) Fulfil the obligations required by firms
in relation the suitability requirements
including the obligations as set out in
the Guidelines on certain aspects of the
MiFID suitability requirements
5.1.2 Know the definition of ‘client’s best interest’ and
the implications of this rule for a financial adviser
5.2.1 understand client categorisation
5.2.4 Understand the ‘know your customer’ rules and
their impact on investment planning
5.2.5 understand the suitability and appropriateness
of advice
5.2.6 know the meaning of execution-only sales
d) Understand how the type of
investment product provided by
the firm may not be suitable for the
client, having assessed the relevant
information provided by the client
against potential changes that may
have occurred since the relevant
information was gathered
e) Understand how financial markets
function and how they affect the
value and pricing investment products
offered or recommended to clients
5.2.4 Understand the ‘know your customer’ rules and
their impact on investment planning
5.2.5 understand the suitability and appropriateness
of advice
5.3.1 understand the key stages in investment
planning and determining investment
objectives and strategy
1.1.1 know the function of the financial services
industry in the economy
1.1.2 know the role of the main institutions/
organisations
1.1.3 understand the roles of the following: Wealth
managers; private banks; platforms
1.3.1 understand how price is determined and the
interaction of supply and demand
6.3.1 know the difference between fundamental and
technical analysis
f) Understand the impact of economic
figures, national/regional/global
events on markets and on the value of
investment products being offered or
recommended to clients
1.2.1 know how national income is determined,
composed and measured in both an open and
closed economy
1.2.2 know the stages of the economic cycle
1.2.3 understand the composition of the balance of
payments and the factors behind and benefits
of international trade and capital flows
1.2.4 know the nature, determination and
measurement of the money supply and the
factors that affect it
g) Understand the difference
between past performance and future
performance scenarios as well as the
limits of predictive forecasting
6.5.4 Understand the concepts of behavioural
finance: key properties; heuristics; prospect
theory; cognitive illustrations
7.1.3 understand how risk is measured – volatility, the
significance of standard deviation as a measure
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of volatility, the importance and limitations of
past performance data
h) Understand issues relating to market
abuse and anti-money laundering
2.2.1 understand the role of the Financial Action Task
Force
2.2.2 know the main offences associated with money
laundering and the regulatory obligations of
financial services firms
2.2.3 know the stages of money laundering
2.2.4 know the client identity procedures
2.2.5 know the offences that constitute insider
dealing and the instruments covered
2.2.6 know the know the offences that constitute
market abuse and the instruments
i) Assess data relevant to the type
investment products offered or
recommended to clients such as Key
Investor Information Documents,
prospectuses, financial statements, or
financial data
5.1.3 know the extent of an adviser’s duty to disclose
material information about a recommended
investment
5.2.5 understand the suitability and appropriateness
of advice
5.2.7 know the requirement for disclosure of charges
and commission
5.2.9 know the requirement for product disclosure
8.2.9 know the elements to be included in a
recommendation report to clients
j) Understand specific market
structures for the type investment
products offered or recommended
to clients and where relevant their
trading venues or the existence of any
secondary markets
1.1.2 know the role of the main institutions/
organisations
1.4.1 Know the main characteristics of order-driven
markets and quote-driven markets and the
differences between principal trading and agent
trading, and on-exchange and over-the-counter
k) Have a basic knowledge of valuation
principles for the type of investment
products offered or recommended to
clients
1.4.3 Know the basic structure of the foreign
exchange market: currency quotes; settlement
3.2.2 Understand yields: running yields; yields to
redemption; capital returns; volatility and risk;
yield Curves
3.4.2 Understand the benefits of holding shares:
dividends; subscription rights; voting rights
3.5.1 Know the following characteristics of futures:
definition; key features; terminology
3.5.2 Know the following characteristics of options:
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definition; types (calls and puts); terminology
3.6.1 Understand the main features of commodity
markets, and how the physical characteristics,
supply and demand, and storage and
transportation issues influence prices:
agricultural; metals; energy
4.1.3 Know the characteristics of types of investment
products: authorised funds and unauthorised
funds; open-ended funds; closed-ended
investment companies
6.3.1 Know the difference between fundamental and
technical analysis: primary objectives;
quantitative techniques; charts; primary
movements; secondary movements; tertiary
movements
6.5.1 Know the basic concept behind shareholder
value models: Economic Value Added (EVA);
Market Value Added (MVA); Gordon’s Growth
Model
l) Understand the fundamentals of
managing a portfolio, including being
able to understand the implications
of diversification regarding individual
investment alternatives
6.1.3 Understand the correlation and covariance
between two variables and the interpretation of
the data
7.1.2 Understand the varying investment returns
from the main different asset classes – ‘riskfree’rates
of return and the risk premium
7.1.4 Understand the measurement of total return
and the significance of beta and alpha
7.2.1 Know the main principles of Modern Portfolio
Theory (MPT) and the Efficient Markets
Hypothesis (EMH)
7.3.3 Understand the use of different asset classes
within a portfolio
International Certificate in Wealth Management (Spain)
This qualification fully incorporates the ESMA guidelines for Investment Advisers.
For more information please contact Praneet Shivaprasad at praneet.shivaprasad@cisi.org
14

Continuous Professional Development
Under the ESMA guidelines, firms will be required to:
a) Carry out an internal or external review, on at least an annual
basis, of staff members’ development and experience needs, assess
regulatory developments and take any action necessary to comply
with the ESMA requirements. This review should also ensure that
staff possess an appropriate qualification and maintain and update
their knowledge and competence by undertaking continuous
professional development;
b) Ensure that they submit to their regulator, on request, records
concerning knowledge and competence of staff providing relevant
services to clients
CISI CPD Scheme
CPD is categorised as either Structured or Unstructured learning.
Structured
Structured CPD is defined as an activity
undertaken for the express purpose of
learning.
Examples:
• Attending CPD events
• Watching webcasts
• Undertaking exams/tests
Unstructured
Unstructured CPD includes unplanned
activities, where there is no predetermined
learning objective and outcome.
Examples:
• Undertaking research
• Reading publications
• Exam revision
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Structured/Unstructured
All online CPD activities and events undertaken with the CISI are automatically recorded on the
CISI scheme and do not require evidence to be submitted in a CISI CPD audit.
Structured
Structured learning 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 type of fund. It must be
verifiable, eg, through attendance records, or through
the independent logging of an elearning revision course.
Please note that all structured CPD must be a minimum
of 30 minutes.
Minimum hours: 21
I have attended a:
Company briefing/update/ team meeting with an
explicit briefing remit
Exam training course Conference
CPD event
Lecture
Seminar
Training course
Workshop
Professional forum
I have developed others by:
(maximum 20 hours, minimum one hour for
Chartered members)
Chairing or presenting at an industry-relevant event
Member of industry-related board, panel or committee
Developing and assessing exam questions
Syllabus exam panel
Training or briefing staff and colleagues on industry
relevant topics
Writing industry articles, workbooks and journals
Contributing towards learning materials
Unstructured
This element includes unplanned activities, where
there is no pre-determined learning objective and
outcome. This also includes unaccompanied learning
activities.
Maximum hours: 14
I have attended an:
Informal meeting with no predetermined learning
purpose
I have developed others by:
Informal coaching and mentoring staff on industry
relevant topics
I have watched or listened to:
Television programmes on relevant topics
Unverifiable podcasts
Unverifiable webcasts
Unverifiable live webstreams
I have undertaken (maximum ten hours)
Research
I have read (maximum five hours)
CISI’s Change - the Regulatory Update
Financial Times
Securities & Investment Review
Trade magazines
Online news services
Industry journals
CISI’s Investment Management Review
I have watched or listened to:
Verifiable webcast with questions or test
Verifiable podcast
Verifiable webcast
Verifiable live webstream
I have undertaken:
Exams (benchmark qualifications not accepted as CPD)
Verifiable eLearning
Exam revision material
Studying material
The CISI recommends undertaking
35 hours of CPD, of which 21 hours
minimum are structured on an annual
basis.
I have read* (maximum five hours):
Quality educational material with specific learning
outcome
16

CISI CPD – Member Benefits
The CISI has developed an extensive range of CPD benefits for members, including:
• Professional Refresher – a range of over 70 online learning modules, covering topics such as
MiFIDII, UCITS, EMIR, Cyber Crime and Best Execution
• Events and conferences
• CISI TV – where our best events are recorded and made available online to members, on
topics such as ‘Brussels for Brunch’, ‘Europe and the next generation’ and ‘The cost of trust
gone wrong’
• Publications
This range of benefits makes it easy for individuals to fulfil their obligation to complete CPD on
an annual basis. For CISI members, use of CISI’s online resources or publications, or attending
events, is automatically added to their CPD record. External activities can be uploaded by
individuals or by firms with the Superuser function.
17

CISI Online CPD Record
The CISI has developed its own online system that can be used to record an individual’s Continual
Professional Development (CPD), giving each member an auditable record. There is a Superuser
function to make it easy for firms to track, and report to the regulator on, employees’ ongoing
training and development.
CISI CPD Superuser
To make managing and overseeing your staff’s development programme as easy as possible, the CISI
has a Superuser function, where you can monitor the CPD activities of your staff. It enables you to view
the CPD records of all your employees who have an active record and have allowed Superuser access.
Benefits of Superuser include:
• Reports can also be used to monitor the CPD activities undertaken by individuals.
• You can monitor completion of specific CISI Online Refresher modules.
• You can create bespoke CPD activities and apply it to one, or all, of your staff’s CPD records.
• Details can be imported or exported via Excel files.
• Emails can be sent to selected staff registered on the scheme.
“It is imperative for professionals working in the ever-evolving financial
services industry to ensure the currency of their knowledge. CPD helps
individuals maintain and add to their expertise and understanding,
resulting in a deeper, and more rounded, level of professionalism.”
Petros Florides, Chartered FCSI, Regional Governance Advisor
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Business Ethics
Under the ESMA guidelines, firms will be required to:
“Ensure that staff providing relevant services possess the necessary
knowledge and competence to meet relevant regulatory and legal
requirements and business ethics standards”
CISI Code of Conduct
Professionals within the securities and investment industry owe important duties to their clients,
the market, the industry and society at large. Where these duties are set out in law, or in regulation,
the professional must always comply with the requirements in an open and transparent manner.
Additionally, CISI members are required to meet the standards set out within the CISI’s Principles. These
Principles, which are also known as the Lord George Principles in recognition of the contribution made
to standards of integrity by the late Lord George FSI(Hon), impose an obligation on members to act at
all times in a way beyond mere compliance and to support the underlying values of the Institute.
Principles
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 at all times
The CISI has developed products and services where the highest standards of integrity are
embedded and regularly tested.
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IntegrityMatters
IntegrityMatters is an online integrity test designed to highlight dilemmas practitioners may
face at work, and has been taken by over 30,000 industry professionals to date. This elearning
tool highlights the importance of integrity and enables users to test their ability to make ethical
decisions in the workplace.
Interactive Workshops
Our interactive workshops, which can be tailored to suit firms and delivered in-house, have been
developed to get staff across your company thinking about how they can, and would, respond to
potential issues, and include interactive and anonymous voting.
Integrity Matters
This workshop explores real-life ethical challenges experienced in the
workplace and offers attendees the opportunity to vote on how they
would respond should they be faced with the challenge.
Speak Up
Professional Refresher
This workshop provides you and your colleagues with the opportunity to
discuss and debate a series of true to life scenarios, and gives you the tips
and tools to speak up with confidence.
Professional Refresher is an online learning system, including a self-administered test, and is
free for CISI members. It offers learning modules to support the latest regulatory and industry
changes. Modules include:
Integrity & Ethics
Speak Up
High level view
Ethical behaviour
An ethical approach
Compliance vs ethics
Obstacles to speaking up
Legislation
Best practice
The future
“Restoring trust is essential for our sector. Working with the CISI is a clear and
tangible demonstration of our employees’ commitment to professionalism
and integrity.”
Isidro Fainé, Chairman of CaixaBank
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Contact details
If you have any question
about the products and
services we offer, or would
like to know more about
becoming involved with
the CISI, please contact us.
cisi.org
Kevin Moore, Chartered MCSI
Director, Global Business Development
+44 20 7645 0694 kevin.moore@cisi.org
Praneet Shivaprasad
International Manager
+44 20 7645 0639 praneet.shivaprasad@cisi.org
Hayley Brown ACSI
International Manager
+44 20 7645 0674 hayley.brown@cisi.org
Daniel Boucher
International Manager
+44 20 7645 0697 daniel.boucher@cisi.org
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