Chartered Banker Professional Standards Board

Foundation Standard for Professional Bankers

July 2012

OVERVIEW Introduction The Chartered Banker Professional Standards Board (CB:PSB) was launched in October 2011. It aims to enhance and sustain a strong culture of ethical and professional development across the UK banking industry by developing a series of professional standards at Foundation, Intermediate and Advanced levels. The CB:PSB intends to help build, over time, greater public confidence and trust in individuals, institutions and the banking industry overall, and enhance pride in the banking profession.

The Foundation Standard for Professional Bankers (Foundation Standard) is the CB:PSB’s first professional standard. The CB:PSB developed and published the Chartered Banker Code of Professional Conduct which sets out the values, attitudes and behaviours expected of all banking professionals:

I will demonstrate my personal commitment to professionalism in banking by: 1. Treating all customers, colleagues and counterparties with respect and integrity; 2. Considering the risks and implications of my actions and advice, and holding myself accountable for them and for the impact these may have on others; 3. Complying with all current regulatory and legal requirements and following best industry practice; 4. Treating information with appropriate confidentiality and sensitivity; 5. Being alert to and managing potential conflicts of interest which may arise whilst performing my role; 6. Developing and maintaining my professional knowledge and skills; and 7. Acting, at all times, in a fair, honest, trustworthy and diligent manner. The Foundation Standard supports individuals and organisations in applying the Chartered Banker Code of Professional Conduct by detailing the CB:PSB’s expectations of all banking professionals in relation to: A) Professional Knowledge and Skills; and B) Professional Values, Attitudes and Behaviours.

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Format The Standard is set out in two parts:

• Requirements – the Knowledge, Skills, Values, Attitudes and Behaviours needed to meet the Standard; and • Guidance – how the requirements may be met in terms of learning and development activities, assessment and experience.

Requirements are divided into:

• Professional Knowledge and Professional Skills Indicators, setting out the Professional Knowledge, Skills, Values, Attitudes and Behaviours required to ensure an individual has the ability to perform a particular role at a particular level; and • Professional Performance Indicators, which illustrate the required level of workplace competence.

Applies To The Foundation Standard is primarily written for member organisations of the CB:PSB and their staff. It is for each member to determine how the Standard may best be implemented and embedded within their organisation. In addition, the Foundation Standard may be helpful to a wide range of stakeholders who support and value the learning and development of Professional Knowledge, Skills, Values, Attitudes and Behaviours in the banking industry, including: • Professional bodies

• Other training providers

• Regulators

• Universities and colleges

• Employers

• Government authorities

Membership On completion of the Foundation Standard requirements, an individual may qualify for membership of the Chartered Banker Institute.

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A

PROFESSIONAL KNOWLEDGE AND SKILLS – REQUIREMENTS 1. Professional Knowledge Indicators Individuals should demonstrate a basic level of professional knowledge in the areas set out below by being able to describe and explain, in areas relevant to their role, function and organisation: a) The purpose and functions of a bank; b) The economic and business environment; c) Banking products and services, an understanding of those products and services, and of their suitability for different types of customer and counterparty; d) The regulatory and legal requirements relevant to an individual’s role and function and how these factors influence the operation of a bank; e) The approaches to risk management relevant to an individual’s role and function; and

f) The principles of credit and lending.

2. Professional Skills Indicators Individuals should demonstrate professional skills, as detailed below, and be able to apply these in the context of their work in a manner consistent with the Chartered Banker Code of Professional Conduct:

a) Individuals are able to communicate their banks’ products and services in an effective and professional manner to customers, counterparties and others; b) Individuals are able to meet their customers’ and others’ basic needs professionally and responsibly; c) Individuals are able to identify and effectively communicate the more complex needs of customers, counterparties, colleagues or others to others in their organisation who may be able to assist in meeting these; d) Individuals are able to apply relevant regulatory and legal requirements and industry best practice; e) Individuals are able to effectively and accurately articulate decisions and the decision-making process; and f) Individuals are able to respond to complaints efficiently and effectively, using internal processes and sign-posting external mechanisms as necessary.

3. Professional Performance Indicators a) Individuals demonstrate the application of their general and role-specific knowledge through their day-to-day activities and decision-making in order to meet customers’ and others’ needs in a professional manner; and b) Individuals take responsibility and accountability for ensuring they remain compliant with relevant regulatory and legal requirements, approaches to risk management, industry best practice and the Chartered Banker Code of Professional Conduct.

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B

PROFESSIONAL VALUES, ATTITUDES AND BEHAVIOURS – REQUIREMENTS 1. Professional Knowledge Indicators Individuals should demonstrate a basic level of professional knowledge in the areas set out below by being able to describe and explain, in areas relevant to their role, function and organisation: a) The importance and key features of an ethical and professional approach, as set out in the Chartered Banker Code of Professional Conduct and other relevant employer or professional codes, in dealing with customers, counterparties, colleagues and others; b) Relevant regulatory and legal requirements and industry best practice; c) Mechanisms for identifying, reporting and resolving ethical dilemmas, including conflicts of interest; d) Mechanisms for dealing with complaints effectively; e) Banks’ social responsibilities; and f) Impacts on individuals, institutions, the banking industry and society of unethical and unprofessional behaviours.

2. Professional Skills Indicators Individuals should demonstrate professional skills, as described below, and be able to apply these in the context of their role and function: a) Apply the core principles set out in the Chartered Banker Code of Professional Conduct and other relevant employer or professional codes; b) Recognise dilemmas and conflicts of interest and communicate these to others who may be able to help resolve these; c) Maintain information with appropriate confidentiality and sensitivity; d) Apply relevant regulatory and legal requirements and industry best practice in a manner consistent with the Chartered Banker Code of Professional Conduct; e) Deal with complaints in a fair and consistent manner; and



f) Exhibit an understanding of banks’ social responsibilities and the impact of unethical and unprofessional behaviours.

3. Professional Performance Indicators a) Individuals take responsibility for their day-to-day activities, decision-making and for acting ethically and professionally within the context of their work, including identifying and taking steps to resolve ethical dilemmas and potential conflicts of interest; b) Individuals develop and maintain relationships with customers, counterparties, colleagues and others based on honesty, integrity, fairness and respect; c) Individuals work with others in their organisation to ensure they remain compliant with relevant regulatory and legal requirements and industry best practice; and d) Individuals take responsibility for acting in a manner that is consistent with the Chartered Banker Code of Professional Conduct.

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???????????????????????????????? GUIDANCE Implementation CB:PSB members and others wishing to assist staff in achieving the requirements of the Foundation Standard may do so in a variety of ways, including but not limited to, aligning, incorporating and/or embedding the Foundation Standard with:

• Induction and onboarding programmes;



• The employee journey and similar;



• Elements of competency frameworks and role profiles, as appropriate;



• Initial and/or ongoing competency assessments;



• Learning and development strategies and programmes; and



• Performance management and similar processes.

The Chartered Banker Institute may provide advice and assistance to CB:PSB member organisations seeking to implement the Foundation Standard.

Accreditation CB:PSB members and others who support the development of the Professional Knowledge, Skills, Values, Attitudes and Behaviours as set out in the Chartered Banker Code of Professional Conduct may apply to the Chartered Banker Institute for the accreditation of activities relevant to the implementation of the Foundation Standard. These may include, but are not limited to:

• Induction and onboarding programmes;



• The employee journey and similar;



• Competency frameworks;



• Competency assessments;



• Learning and development activities conducted by the bank and/or partners;



• Qualifications already achieved by individuals; and



• Performance management and similar processes.

The Standards Journey Intermediate Level Standard(s) (specialist roles)

Advanced Level Standard(s)

Foundation Level Standard

(experienced & senior bankers)

(all employees)

Chartered Banker Code of Professional Conduct

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???????????????????????????????? Learning and Development Activities

Effective learning and development activities to develop an understanding of the Professional Knowledge, Skills, Values, Attitudes and Behaviours requirements, as set out in the Foundation Standard, may include, but are not limited to:

• using case studies/histories and similar materials;



• participating, individually or as a group, in role-plays or simulations where different decisions lead to different outcomes;



• discussing real-life ethical dilemmas and conflicts of interest with colleagues, line managers and others;



• using ethical decision-making models to analyse real ethical dilemmas arising in the workplace;



• studying and discussing ethical dilemmas from other industries;



• coaching and mentoring;

• self-reflection on personal and professional experiences;

• attending seminars, workshops and similar live or online events organised by employers, professional bodies and others;



• participating in learning and development programmes provided by employers or others, including classroom-based training, distance learning, e-learning and blended learning programmes; and



• studying for a relevant academic or professional qualification.

Recognition of Prior Certificated Learning

An individual’s existing academic and/or professional qualifications and membership(s) may also assist in the achievement of some or all of the requirements of the Foundation Standard. In particular, individuals with relevant professional qualifications and membership(s) from the bodies listed below are likely to meet some or all of the requirements of the Foundation Standard, although this is not intended to be an exhaustive list:

• Chartered Banker Institute (CIOBS Chartered Institute of Bankers in Scotland);

• CBSI Chartered Building Societies Institute;

• CFA Chartered Financial Analyst Institute;



• CII Chartered Insurance Institute;



• CISI Chartered Institute for Securities and Investment;

• ICA International Compliance Association;

• IFP Institute of Financial Planning;



• ifs School of Finance (formerly CIB Chartered Institute of Bankers);



• Institute and Faculty of Actuaries;

• IOB Institute of Bankers in Ireland;

• Recognised Qualification Bodies (Accountancy) – ACCA/ICAS/ICAEW/CIMA/AIA/CIPFA; and



• EBTN (European Bank Training Network) member institutes.

CB:PSB members should ensure that they have appropriate systems in place to check that individuals’ prior certificated learning meets some or all of the requirements of the Foundation Standard. The Chartered Banker Institute may assist in this process.

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Continuing Professional Development (CPD)

The development of Professional Knowledge, Skills, Values, Attitudes and Behaviours continues throughout a banking professional’s career, and it is anticipated that individuals meeting the requirements of the Foundation Standard will seek to develop these further, and will be supported in this development by their colleagues and employers.

Effective Date The Foundation Standard is effective from 2nd July 2012 Review Date The Foundation Standard will be reviewed prior to 30th June 2015

Chartered Banker Professional Standards Board

Drumsheugh House 38b Drumsheugh Gardens Edinburgh EH3 7SW

Telephone: +44 (0)131 473 7792 Email: [email protected] Web: www.cbpsb.org

Chartered Banker Institute is a trading name of The Chartered Institute of Bankers in Scotland. Charitable Body No SC013927

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