Barry Smith becomes CII president

Barry Smith has kicked off his year as president of the CII with the introduction of the organisation’s newly revised and strengthened code of ethics.

The code was formally endorsed shortly before Smith, chief executive of Fortis UK, became 113th President of the CII at its annual general meeting in London today. He takes over from Trevor Matthews, chief executive officer of Friends Provident.

Elected as deputy-president alongside Barry Smith was Chris Hanks, General Manager, Commercial, at Allianz Insurance.

Commenting on the newly revised and strengthened code, outgoing president Trevor Matthews said: “It is important if we are to continue bringing professionalism to life that this code is seen by the public to be robust and gives the CII the clarity to pursue disciplinary measures where appropriate. There is a public expectation that how codes of ethics are communicated, policed and enacted is as important as simply having them in existence.”

Smith added: “The CII has been vigorous in its promotion of professionalism in its broadest sense, both in terms of the FSA’s Retail Distribution Review on the financial side, and the Professionalism Task Force on the general insurance side. Building trust through partnership with consumers, advisers and partners will be key themes in the coming twelve months and I look forward to supporting these initiatives.”

The new Code of Ethics central principles are that members should: act with the highest ethical standards and integrity;act in the best interests of each client;provide a high standard of service; treat people fairly, irrespective of: race or racial group; sex or sexual orientation; religion or belief; age; and disability comply with the code and all relevant laws and regulations.

Paying tribute to all the members who volunteer to support the organisation, especially in the local institutes, CII Group chief executive Dr Alexander Scott hailed 2008 as a year of progress, despite the most exceptional and volatile conditions for at least a generation. He said:

”The CII is very much committed to guiding the direction of the profession in the 21st century – responding powerfully to the challenges set on behalf of members and, most of all, the public interest.

“Overall revenues increased by 7% to £30.3m in 2008 (compared to 2007’s £28.4m).

“Operating surplus was £0.8m (2007: £0.6m), and the net surplus, after investment returns and taxation, was £1.9m (2007: £1m).”

Also at the CII AGM: Publication of the CII Annual Report and Accounts for 2008.

The AGM heard that the number of members with Chartered Broker status has exceeded 2 500, while the number of PFS members with the Chartered Financial Planner designation has risen to 1 700. CII research shows that the chartered brand for insurance and financial services professionals engenders the highest level of confidence among the general public.

The CII has recently enhanced the criteria for its corporate chartered schemes with the aim of improving standards of professionalism across the general insurance and financial services sectors. The introduction of these changes follows market consultation and feedback from industry participants, including current chartered firms, brokers, insurers and financial planners.

The CII has decided, in consideration of the economic downturn, to freeze membership subscriptions at 2008 levels until at least the end of 2010.