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Chapter 10 Ethics, corporate governance and internal controls 10/3

Continuing professional development
Beyond qualification by examination there is a requirement for continuing professional development
(CPD) and there are a variety of activities that contribute to personal development including:
• attendance at relevant courses and seminars, supervisory counselling, private study (possibly for
qualifications);
• completing online courses;
• involvement in the activities of professional bodies, e.g. writing, examining or training others; and
• the regular reading of financial websites and publications.
In some countries, professional bodies give guidance on acceptable activities for CPD and the amount of
time that should be devoted to development each year.
Consider this…
If you were to describe someone as being ‘professional in their conduct’ what would you be saying about them?
Why would it be important for someone working in insurance to be seen in this way?

A1 The CII Code of Ethics
The CII Code of Ethics sets down the principles which all CII members must follow in the course of their
professional duties. It is described by the CII as:

… a powerful tool for members – it is as much a mark of distinction as the designations on your business card. The
code is the foundation of trust in you and in your business. The code creates confidence in you and in the industry.

The Code is concerned with attitude and behaviour, therefore tends to have a wider application than the
It is concerned with
regulatory rules that overlap many aspects of business life. Rather than setting a series of minimum attitude and
requirements, the Code represents a positive statement of the core values that must inform decision- behaviour
making, business relationships and a member’s more general behaviour.
Members are obliged to comply with the Code. If they do not, the CII may take disciplinary action against
them. The Code appears in appendix 10.1 of this chapter, however the key values that underpin it are
summarised in the next section.

A2 Central principles
There are five central principles in the CII Code of Ethics. The Code states that members must:

• comply with the Code and all relevant laws and regulations;
• act with the highest ethical standards and integrity;
• act in the best interests of each client;
• provide a high level of service; and
• treat people fairly, regardless of: age, disability, gender reassignment, pregnancy and maternity,
marriage and civil partnership, race, religion and belief, sex, and sexual orientation.

Compliance with the Code and This section of the Code requires the member’s dealings with the CII and
all relevant laws and regulations regulatory authorities to be open, clear, courteous and cooperative.
In line with the ethical nature of the Code, members must follow both the spirit
and letter of the law.
Individuals must be properly authorised and regulated and, as far as they are able,
make sure that their organisations are suitably regulated and compliant. Breaches
must be reported to the CII.
There are some key practical questions in this section implying a need to be up to
date with regulatory and legislative developments and to be aware of specific
regulations regarding advertising, data protection and competition. There is a need Chapter
for knowledge of both the compliance regime within the firm and the means of
updating it where necessary. 10