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PENSIONS MANAGEMENT INSTITUTE
GOVERNANCE
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IntroductionThe Pensions Management Institute (PMI) is a company limited by guarantee and is the professional body representing people employed in the provision of advice to or management of work-based retirement benefit schemes. This document sets out the governance of the Institute as stated in the following documents:
1. PMI Articles of Association – this sets out the legal basis for PMI to operate2. Code of Professional Conduct – this sets out the professional code for
Members to follow3. Membership Regulations – expands the legal basis provided by the Articles of
Association and sets out processes employed by PMI in the course of its business.
A summary of the key points for each of these documents is set out in the sections below with the complete documents included as appendices. In case of any conflict, the appendices shall have precedence. Included in appendices D – G are the Terms of Reference for Board Committees.
Articles of AssociationThe current Articles of Association were adopted by Special Resolution on 9 th March 2010 and came into effect on 1st April 2010. The complete document is at Appendix A. The key points within the Articles are set out below.
Objects of PMIThe objects for which the Institute is established are to:
Assist in the advancement of education and learning Encourage, extend, increase, disseminate and promote knowledge of relevant
law and practice Promote, conduct and support research Promote the exchange of information, ideas and advice
in relation to all things connected with or incidental to the management of retirement benefit schemes.
MembershipThe number of Members of the Institute is unlimited under Article 10. Under Articles 13-19, the following apply:
The Board is empowered to prescribe by regulation all matters relating to qualifications for and benefits of membership of the Institute.
All Members of the Institute have the right to attend General Meetings Only Fellows and Associates have the right to vote at General Meetings Members will be required to sign an undertaking that s/he will sign and
observe the Articles of Association and Code of Professional Conduct
Complaints against a Member will be dealt with in accordance with the Disciplinary Procedures in Appendix H
General Meetings
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The Institute will hold each year a General Meeting as its Annual General Meeting (AGM) with not more than 15 months between AGMs. In addition, Special General Meetings may be convened by the Board at appropriate occasions and also by a requisition to the Board, stating the object of the meeting, signed by not less than 20 Members entitled to attend and vote at such meetings. AGMs will be called at not less than 21 days notice. Special General Meetings require a minimum of 14 days notice.
The ordinary business of the AGM is:
Consideration of the Accounts Reports of the Board and Auditors Announcement of the results of the election of Members of the Council Filling of places on the Board Appointment of and the fixing of the remuneration of the Auditors.
A quorum of ten members must be present in person at any General Meeting.
Every Fellow or Associate present in person at a General Meeting is entitled to one vote. Any Member who is in arrears with any subscription loses the right to attend and vote at any General Meeting.
Management of the InstituteThe Institute is managed through:
An Advisory Council Honorary Officers The Board The Chief Executive
Advisory CouncilThis will consist of 16 Fellows of the Institute elected in accordance with the Articles of Association. Its role is to:
Advise on the strategic direction of the Institute Provide technical input and expertise on industry issues Act as ambassadors for the Institute Undertake such duties and functions as required by the Articles of Association
In addition, the Council may, at its discretion, appoint up to 4 persons with appropriate expertise as “External Council Members.” External Council Members shall not be entitled to vote nor count towards a quorum at any meeting.
Only Fellows of the Institute are eligible for Council Membership and they will:
Be nominated by a minimum of 2 Fellows or Associates Serve a 5 year term Be able to serve 2 consecutive 5 year terms, after which a minimum of 1 year
shall elapse before taking up office again.
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Honorary OfficersThere will be 3 Honorary Officers of the Institute elected by and from the Council, namely:
A President who will o Serve at least 1 year as Presidento Be eligible to serve for 3 consecutive terms (unless Council agrees to a
fourth terms) Two Vice-Presidents who will:
o Serve at least 2 years as Vice Presidento Be eligible to serve for 2 consecutive terms
The BoardThe management of the Institute is vested in a Board consisting of:
The President and 2 Vice-Presidents of the Institute The Chief Executive of the Institute The Financial Controller of the Institute Either 2 or 4 persons co-opted by the Board for a maximum of 2 years, at
least half of which are Council Members.
Powers and Duties of the BoardThe Board:
Has full responsibility for and exercises powers for the conduct of business and affairs of the Institute, excluding those activities required by Statute and the Articles of Association to be conducted by General Meeting
May delegate powers to Committees established by the Board May appoint salaried staff in connection with the conduct of business and
affairs of the Institute May appoint professional advisers May appoint attorneys of the Institute to act for such purposes outside the
United Kingdom Will keep minutes to record:
o All appointments made by the Board, o The names of persons present at Board and Board Committee
meetingso All resolutions and proceedings at all General Meetings, Board
Meetings and Board Committee meetings
Disqualification of Members of the Board is covered under Article 61 of the Articles of Association.
Board MeetingsAt Board meetings:
Questions arising will be decided by majority vote In cases of equality vote, the Chairman will have the casting vote No Board member may vote on any contract with the Institute in which s/he
has an interest The quorum for a physical meeting of the Board is 3 members The President or, failing him/her, any Vice President will chair the meeting
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The Chief ExecutiveThe Chief Executive will be appointed by the Board and may be dismissed only by the Board. S/he may delegate functions to other employees of the Institute.
Code of Professional ConductMembership of the Institute is a privilege. The disciplines and standards of behavior expected of Members must uphold the reputation of the profession and the Institute. Council therefore believes that Members will welcome guidance upon matters of a professional nature and issues this Code of Professional Conduct to provide that guidance. No code can cover every set of facts and circumstances. Hence, one of the fundamental principles applying to a Member is that s/he observes the spirit as much as the letter of this Code. The full Code of Professional Conduct is at Appendix B.
MisconductIn the event of a complaint of misconduct being made to the Institute in respect of any Member, the Institute will take appropriate investigative and, if necessary, disciplinary action against the Member.
Any Member who is in doubt as to the attitude which should be adopted or the steps to be taken in a particular case where professional conduct is in question, or any Member who would like the advice of a senior Member of the Institute on professional conduct, should contact the Head of Membership & IT at PMI.
Membership RegulationsMembership Regulations build upon the Articles of Association and are at Appendix C
Classes of MembershipAll personnel who are engaged in the objectives of the Institute, have applied and have been accepted by the Institute are classified as Members. Members can be engaged with the Institute in a number of different ways:
Fellows Associates Holders of DipPMI and CertPMI designations Students The PMI Trustee Group Independent Professional Trustee Group (IPTG) Affiliates
Qualification Criteria Fellows will have a minimum of 5 years as an Associate of PMI and will have
logged 3 years continuous CPD with the PMI at the point of application. Associates will have achieved the Advanced Diploma in Retirement Provision
and have at least 3 years experience working in the retirements benefits industry.
Members will be eligible for DipPMI and CertPMI memberships upon achieving the requisite professional qualifications.
Affiliates will be any individual wishing to be affiliated with the PMI.
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PMI Trustee Group members will be either trustees or anyone wishing to receive trustee specific benefits offered by the PMI.
IPTG members will be independent trustees (i.e. a person carrying out the duties of a trustee when s/he has no direct or indirect involvement with the employer or members nor any such involvement other than as a trustee with the pension scheme and receives remuneration for those duties).
Participants in the Accredited Adviser Programme will be members of PMI and will also be bound by the additional terms of that Programme.
All of the above will be subject to payment of the appropriate fee and completion of the correct application form.
Membership ObligationsAny person admitted to membership of PMI will be required to give written undertakings that s/he will:
Abide by the Institutes Articles, Regulations and Code of Conduct After ceasing to be a member not use, or allow to be used, any name or
designation suggesting past or present membership of PMI Pay fees and other expenses promptly
Comply with other reasonable Board requirements
VotingOnly Fellows and Associate Members are entitled to vote at General Meetings of PMI.
FeesFees charged to members will consist of:
A one-off application fee either on joining the PMI or on moving from one grade of membership to another
Annual; subscriptions
The Board determines different joining fees for different memberships and, at the Boards discretion, may charge reduced fees for members who are retired, unemployed, on maternity leave or other circumstances as determined by the Board. Late payment charges may be made for annual subscriptions which are overdue.
Disciplinary IssuesThese are set out in Appendix H.
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Appendix A – Articles of Association
Company number
1262100
THE COMPANIES ACT 2006
COMPANY LIMITED BY GUARANTEEAND NOT HAVING A SHARE CAPITAL
REVISED ARTICLES OF ASSOCIATION
OF
THE PENSIONS MANAGEMENT INSTITUTE (adopted by Special Resolution on 9th March 2010 and coming into effect on 1 April 2010)
1. The name of the Company is "THE PENSIONS MANAGEMENT INSTITUTE"
2. The Registered Office of the Institute is situated in England.
INTERPRETATION
3.
In these revised Articles unless the context otherwise requires: (a) "Articles" means these revised Articles which supersede the Memorandum of Association of the Company to the extent provided in the 2006 Act and the previous Articles of Association.
(b) "the 2006 Act" means the Companies Act 2006 including any statutory modification or re-enactment of it for the time being in force.
(c) "the Acts" means the Companies Act 2006 and, to the extent in force, the Companies Act 1985.
(d) "Board" means the governing body of the Institute constituted under Article 54.
(e) "British Isles" means Great Britain and Northern Ireland, the Channel Islands, the Isle of Man and the Republic of Ireland.
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(f) "Chief Executive" means the chief executive of the Institute by whatever title known from time to time and any person acting on behalf of the Chief Executive.
(g) "Code of Professional Conduct" means the Code of Professional Conduct of the Institute for the time being in force.
(h) "Council" means the Advisory Council for the time being of the Institute constituted under Article 37.
(i) "Institute" means The Pensions Management Institute.
(j) "Member" means a Member of the Institute of any class.
(k) "Office" means the Registered Office for the time being of the Institute.
(l) "Register" means the Register of Members for the time being of the Institute.
(m) "Regulations" means Regulations made by the Board.
(n) "Schemes" means any kind of formal or informal arrangements which provide pensions or other benefits to employees or the self employed in connection with savings, incentives or rewards.
(o) "Special Resolution" has the meaning ascribed to it in the Acts.
(p) "the Statutes" means the Acts and every other statute, statutory instrument, regulation or order for the time being in force concerning companies registered under the Acts and affecting the Institute.
(q) Expressions in these Articles referring to writing shall, unless the contrary intention appears, be construed as including references to printing, lithography, photography and other modes of representing or reproducing words in a visible form.
(r) In these Articles, if not inconsistent with the subject or context, words importing the singular number only shall include the plural number and vice versa, words importing the masculine gender only shall include the feminine gender, and words importing persons shall include corporations.
(s) Unless the context otherwise requires, and subject as aforesaid, words or expressions contained in these Articles shall bear the same meaning as in the Acts.
4. The objects for which the Institute is established (“the objects”) are to: (a) Assist in the advancement of education and learning; (b) Encourage, extend, increase, disseminate and promote knowledge of relevant law and practice; (c) Promote, conduct and support research; and (d) Promote the exchange of information, ideas and advice
n relation to all things connected with or incidental to the management of Schemes.
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5. The Institute in carrying out the objects shall have and may exercise all or any of the following powers:
(a) To promote, encourage, advance and coordinate the consideration and discussion of all questions affecting the management of Schemes. (b) To promote in every possible way the objects of the Institute and to maintain and enhance the status and prestige of persons engaged in or associated with the management of Schemes and to provide a professional organisation for such persons.
(c) To promote either alone or jointly with other bodies the better education and training of persons engaged in or associated with the management of Schemes and to encourage persons interested in the subject to study the management of Schemes and by means of examination to test the skill and knowledge of such persons and to grant diplomas, certificates or awards (with or without prior examination) to Members of the Institute and to members or employees of such other bodies as participate in such Schemes or arrangements in recognition of their special qualifications, knowledge or skill in some aspect of the management of Schemes, and to confer upon the grantees of such diplomas, certificates and awards the right to use designatory words or letters after their names to indicate the grant of any such diploma, certificate or award
(d) To maintain a register of Members qualified in the management of Schemes by Admission to one of the classes of membership of the Institute, and to permit other Persons who are not members of the Institute to be affiliated to the Institute in such manner and subject to such conditions as may be seen fit.
(e) To set up and enforce high standards of professional conduct amongst Members and to publish a Code of Professional Conduct.
(f) To provide such specialised services connected with the management of Schemes as are considered to be of assistance or benefit in furthering the objects of the Institute.
(g) To hold conferences and meetings for the consideration and discussion of matters concerning or affecting or incidental to the management of Schemes.
(h) To issue reports of proceedings of conferences and meetings and generally to collect, collate and publish information of assistance or benefit in furtherance of the objects of the Institute.
(i) To make representations, collect and give evidence to the Government, Government Departments and any other bodies or organisations interested in or concerned with the management of Schemes, or any matter or thing connected therewith or incidental thereto.
(j) To organise and finance education and training courses concerned with any of the objects of the Institute including without limiting the generality of the foregoing
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seminars, study groups, discussions, courses and the reading of learned papers concerned with matters related or incidental to the management of Schemes, and to pay and provide for scholarships, exhibitions, prizes and other awards.
(k) To establish, authorise the formation of, maintain control and manage local groups in the United Kingdom and elsewhere for the purpose of promoting the objects of the Institute and from time to time to determine the constitution, rights, privileges, obligations and duties of such groups, and if thought fit to modify and dissolve the same.
(l) To prepare, edit, print, publish, issue, acquire and circulate (or to assist in the same) books, papers, periodicals, gazettes, circulars and other literary undertakings concerned with or bearing upon any of the objects.
(m) To establish and maintain a library and collection of all forms of material relating to or incidental to the management of Schemes and to provide facilities for the use of the same.
(n) To take such steps as may from time to time be necessary for the purpose of procuring contributions to the funds of the Institute.
(o) To borrow or raise any money that may be required by the Institute upon such terms as may be deemed desirable and in particular by mortgage or charge of all or any part of the property of the Institute and draw, make, accept, endorse, discount, execute and issue negotiable or transferable instruments.
(p) To guarantee in any manner, or to enter into any indemnity or other arrangement in relation to, the discharge of any liabilities or the observance or performance of any kind of obligations of any person and to secure any such guarantee, indemnity or arrangement or the discharge of any liabilities or the observance or performance of any such obligations by any charge over the whole or any part of the undertaking or assets of the Institute.
(q) To invest the moneys of the Institute not immediately required for its purposes in or upon such investments, securities or property as may be thought fit, subject nevertheless to such conditions (if any) and such consents (if any) as may for the time being be imposed or required by law and subject also as hereinafter provided, and to appoint investment advisers and/or managers.
(r) So far as the law may from time to time allow to purchase, take on lease or in exchange, hire or otherwise acquire any real or personal property and any rights or privileges and to construct, erect, alter, improve and maintain any building which may be required from time to time by the Institute and to manage, develop, sell, demise, let, mortgage, dispose of, turn to account or otherwise deal with all or any part of the same. (s) To accept gifts of real or personal property whether subject to any special trust or not for any of the objects of the Institute.
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(t) To sell, let, mortgage, dispose of or otherwise deal with all or any of the property or assets of the Institute as may be thought expedient with a view to the furtherance of its objects.
(u) To establish and/or undertake and execute any trusts which may lawfully be undertaken by the Institute and may be calculated to further its objects and to receive subscriptions thereto and to act as trustee of any deeds constituting or establishing or otherwise as trustee of any trust whether or not with charitable objects and whether or not constituted or established by the Institute and, in this connection, to promote or concur in the promotion of any company, whether British or foreign, for the purpose of acting as trustee of any such trust.
(v) To employ and remunerate staff and to provide such benefits on retirement from or leaving service or death (including benefits for any dependants, relatives and connections) on such terms and conditions and in such manner as the Institute may from time to time determine and to establish and support or aid in the establishment and support of charitable associations, institutions, funds or trusts calculated to benefit employees or ex-employees of the Institute or the dependants relatives and connections of such persons and grant pensions and allowances to and make payments towards the insurance of such persons.
(w) To amalgamate or affiliate with or to acquire or take over the undertaking of any institution or body having objects altogether or in part similar to those of the Institute and not formed for profit and all or any of the assets thereof which the Institute may lawfully acquire or take over but so that any step so taken shall not enlarge the objects of the Institute or involve any activity or disbursement of funds not conducive to such objects.
(x) To promote and incorporate or join in the promotion and incorporation of any company with limited or unlimited liability for the purpose of carrying out any object or exercising any power which the Institute itself could carry out or exercise, and to subscribe for, take, purchase or otherwise acquire and hold shares or other interests in or securities of any such company and to lend money to any such company on such terms as may be thought fit.
(y) To provide any service to any kindred or similar organisation.
(z) To procure the Institute to be registered, incorporated or recognised in any part of the world.
(aa) To do all such other lawful things as are incidental or conducive to the attainment of the objects or any of them. Provided that: (a) In case the Institute shall take or hold any property which may be subject to any trusts, the Institute shall only deal with or invest the same in such manner as allowed by law, having regard to such trusts.
(b) In case the Institute shall take or hold any property subject to the jurisdiction of the
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Charity Commissioners for England and Wales, the Institute shall not sell, mortgage, charge or lease the same without such authority, approval or consent as may be required by law, and as regards any such property the Board of the Institute shall be chargeable for any such property that may come into their hands and shall be answerable and accountable for their own acts, receipts, neglects and defaults, and for the due administration of such property in the same manner and to the same extent as they would as such Board have been if no incorporation had been effected, and the incorporation of the Institute shall not diminish or impair any control or authority exercisable by the Chancery Division or the Charity Commissioners over such Board but they shall as regards any such property be subject jointly and separately to such control or authority as if the Institute were not incorporated.
6. The income and property of the Institute shall be applied solely towards the promotion of the objects and no portion thereof shall be paid or transferred, directly or indirectly, by way of dividend, bonus or otherwise howsoever by way of profit, to Members of the Institute. Provided that nothing herein shall prevent any payment in good faith by the Institute:
(a) Of reasonable and proper remuneration to any Member, officer or servant of the Institute for any services rendered to the Institute;
(b) Of appropriate interest on money lent by any Member to the Institute;
(c) Of reasonable and proper rent for premises demised or let to the Institute by any Member.
7. The liability of the Members is limited.
8. Every Member of the Institute undertakes to contribute to the assets of the Institute, in the event of the same being wound up while he is a Member or within one year after he ceases to be a Member, for payment of the debts and liabilities of the Institute contracted before he ceases to be a Member, and of the costs, charges and expenses of winding up, and for the adjustment of the rights of the contributories among themselves, such amount as may be required not exceeding one pound.
9. If upon the winding up or dissolution of the Institute there remains, after the satisfaction of all its debts and liabilities, any property whatsoever, the same shall not be paid to or distributed among the Members of the Institute, but shall be given or transferred to some other institution or institutions having objects similar to the objects of the Institute, and which shall prohibit the distribution of its or their income and property among its or their Members to an extent at least as great as is imposed on the Institute under or by virtue of Article 6 hereof, such institution or institutions to be determined by the Members of the Institute at or before the time of dissolution, and if and so far as effect cannot be given to such provision, then to some charitable object.
MEMBERSHIP
10. The number of Members of the Institute is unlimited.
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11. The Members of the Institute shall be the persons admitted to membership upon and subject to the terms and conditions contained in these Articles.
12. The membership of the Institute shall consist of Fellows, Associates, and such other categories as may be provided in Regulations.
MEMBERSHIP REQUIREMENTS, RIGHTS AND OBLIGATIONS
13. The Board shall prescribe by regulations all matters relating to qualifications for, application for, admission to, retention of, exclusion from, rights, obligations (including fees and subscriptions) and benefits of, membership of the Institute: provided that until such regulations are made any of the matters described in this article may be determined in accordance with the articles of the company in force before the adoption of these articles.
14. All Members of the Institute shall have the right to attend General Meetings of the Institute, but only Fellows and Associates of the Institute shall have the right to vote thereat.
15. Every Member shall, for so long as he is a Member, and every applicant for admission to membership shall sign an undertaking that he will, if admitted as a Member, duly observe the Articles of Association and Code of Professional Conduct of the Institute and the Regulations of the Board for the time being in force and co-operate, if reasonably requested to do so, with any Committee duly established by the Board.
16. Any person ceasing by death, or otherwise, to be a Member of the Institute, shall not, nor shall his representatives, have any claim upon or interest in the funds of the Institute; but this provision shall be without prejudice to the rights of the Institute to claim from such person, or his estate, any arrears of subscription or other sums due from him to the Institute at the time of his ceasing to be a Member or any sum which a Member undertakes to contribute to the assets of the Institute on its winding up in accordance with these Articles.
17. Any Member may resign on giving notice in writing to the Institute, but shall remain liable to pay any subscription due from him at the date of such notice.
18. To enable the Institute to keep the Register, it shall be the duty of each Member to furnish to the Chief Executive a business or a residential address for inclusion therein and to notify the Chief Executive of any change.
19. Any complaint made to the Institute against a Member shall be dealt with in accordance with Regulations provided that if such Regulations have not been made such complaint shall be dealt with in accordance with the Articles of the Institute in existence before the date on which these Articles were adopted.
GENERAL MEETINGS
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20. The Institute shall in each year hold a General Meeting as its Annual General Meeting in addition to any other meetings in that year, and shall specify the meeting as such in the notice calling it. Not more than fifteen months shall elapse between the dates of one Annual General Meeting of the Institute and that of the next. The Annual General Meeting shall be held at such time and place as the Board shall appoint.
21. All General Meetings other than Annual General Meetings shall be called Special General Meetings.
22. The Board may, whenever it thinks fit, convene a Special General Meeting, and a Special General Meeting shall also be convened upon a requisition to the Board stating the object of the meeting signed by not less than twenty Members having at the date of the deposit of the requisition the right to attend and vote at General Meetings of the Institute, or on such requisition, or in default, may be convened by such requisitionists, as provided by sections 303, 304 and 305 of the 2006 Act.
NOTICE OF GENERAL MEETINGS
23. An Annual General Meeting and a meeting called for the passing of a Special Resolution shall be called by twenty-one days' notice in writing at the least, and a Special General Meeting or a meeting called for the passing of a Special Resolution shall be called by fourteen days' notice in writing at the least. The notice shall be exclusive of the day on which it is served or deemed to be served and of the day for which it is given, and shall specify the place, the day and the hour of meeting and, in case of special business, the general nature of that business and shall be given in manner hereinafter mentioned or in such other manner, if any, as may be prescribed by the Institute in General Meeting, to such persons as are under these Articles entitled to receive such notices from the Institute.
24. The accidental omission to give notice of a meeting to, or the non-receipt of notice of a meeting by, any person entitled to receive notice shall not invalidate the proceedings of that meeting.
PROCEEDINGS AT GENERAL MEETINGS
25. The ordinary business of the Annual General Meeting is the consideration of the Accounts, Balance Sheet, and the reports of the Board and of the Auditors, the announcement of the result of the election of members of the Council and of the filling of places on the Board, and the appointment of, and the fixing of the remuneration, if any, of the Auditors.
26. Ten Members who are Fellows or Associates (“a quorum”) must be present in person at any General Meeting.
27. If within half an hour from the time appointed for the meeting a quorum is not present, the meeting, if convened upon the requisition of Members, shall be dissolved; in any other case it shall stand adjourned to the same day in the next week, at the same time at the
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Office, or at such other time and place as shall be determined by the Board, and if at the adjourned meeting a quorum is not present within half an hour from the time appointed for the meeting the Fellows and Associates present shall be a quorum.
28. The President for the time being of the Institute or, failing him, any Vice-President for the time being shall chair every General Meeting of the Institute, but if there be no such President or Vice-President or if he be not present within fifteen minutes after the time appointed for the holding of the meeting or be unwilling to act, the Fellows and Associates present shall choose one of their number to be the chairman of the meeting.
29. The chairman of a meeting may, with the consent of any meeting at which a quorum is present (and shall if so directed by the meeting), adjourn the meeting from time to time and from place to place, but no business shall be transacted at any adjourned meeting other than the business left unfinished at the meeting from which the adjournment took place. When a meeting is adjourned for thirty days or more, notice of the adjourned meeting shall be given as in the case of an original meeting. Save as aforesaid it shall not be necessary to give any notice of an adjournment or of the business to be transacted at an adjourned meeting.
30. At any General Meeting a Resolution put to the vote of the meeting shall be decided on a show of hands of Fellows and Associates present in person at the meeting unless a poll is (before or on the declaration of the result of the show of hands) demanded:
(a) By the chairman of the meeting; or
(b) By not less than five Members who are Fellows or Associates and who are present in person.
Unless a poll be so demanded a declaration by the chairman of the meeting that a Resolution has on a show of hands been carried or carried unanimously, or by a particular majority, or lost, and an entry to that effect in the minutes of proceedings of the Institute shall be conclusive evidence of the fact without proof of the number or proportion of the votes recorded in favour of or against such Resolution. The demand for a poll may be withdrawn.
31. (1) Except as provided in this Article and in Article 33, if a poll is duly demanded it shall be taken in such manner as the chairman of the meeting shall direct and the result of a poll shall be deemed to be the Resolution of the meeting at which the poll was demanded.
(2) (a) Without prejudice to the generality of paragraph (1) above, the chairman of the meeting may direct that a poll shall be taken by means of either postal or electronic voting papers, which poll shall be a poll of all Members entitled to be present and to vote at the meeting at which the poll was demanded.
(b) The Chief Executive shall send a voting paper to each Member entitled to participate in the poll as soon as reasonably practicable after the meeting at which the poll was demanded (and in any event no later than 42 days after such meeting).
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(c) The voting paper shall show or contain:
(i) The motion on which the poll was demanded;
(ii) The time and date specified by the chairman of the meeting (neither earlier than 14 days nor later than 28 days after the date on which such voting paper was sent) by which the voting paper is to be delivered to the Office or to the offices of such independent scrutineers ("the Scrutineers"); and
(iii) The name and address of the Scrutineers (if any).
Save as aforesaid the voting paper shall be in such form as the chairman of the meeting shall determine.
(d) The votes shall be counted under the direction of the Board or by the Scrutineers. The voting papers shall be retained by the Board or by the Scrutineers (as the case may be) for three months and thereafter until destroyed at the discretion of the Board.
(e) The chairman of the meeting shall cause the result of a poll to be published as soon as reasonably practicable after the ascertainment thereof by displaying it at the Office and in such other manner as the chairman of the meeting shall determine.
32. In the case of an equality of votes, whether on a show of hands or on a poll, the chairman of the meeting of which the show of hands takes place, or at which the poll is demanded, shall be entitled to a second or casting vote.
33. No poll shall be demanded on the election of a chairman of the meeting or on a question of adjournment of the meeting. Subject to the provisions of Article 31, a poll demanded on any other question shall be taken at such time (being not more than 28 days after the date of the meeting at which the poll is demanded) and place as the chairman of the meeting shall direct. Any business other than that upon which a poll has been demanded may be proceeded with pending the taking of the poll.
VOTES OF MEMBERS
34. Every Fellow or Associate present in person at a General Meeting shall be entitled to one vote.
35. No Member shall be entitled to be present or to vote at any General Meeting of the Institute, or upon a poll, or to be reckoned in a quorum, who is in arrears with any subscription payable by him to the Institute.
36. No objection shall be made to the admissibility of any vote except at the meeting or poll at which such vote shall be tendered, and every vote not disallowed at such meeting or poll shall be valid. The chairman of the meeting shall be the sole and absolute judge of the validity of every vote tendered at any meeting or poll.
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ADVISORY COUNCIL
37. There shall be an Advisory Council (herein called the "Council") consisting of sixteen persons elected in accordance with these Articles, with the following functions:
(a) To advise on the strategic direction of the Institute;
(b) To provide technical input and expertise on industry issues;
(c) To act as ambassadors for the Institute; and
(d) To undertake such other duties and functions as are required under these Articles.
38. The Council may at its discretion appoint up to four persons with appropriate expertise in any field as "External Council Members" to participate in Council meetings, to serve for such a term and on such conditions as may be specified by the Council. Persons appointed under this Article shall not be entitled to vote, shall not count for the purposes of a quorum at any meeting, and shall not be treated as members of the Council for any purpose under these Articles except under Articles 53 (expenses) and 80 (notices). The Council shall have power to remove any person appointed under this Article at any time.
39. Only Fellows of the Institute shall be eligible to be elected as members of the Council. 40. For the purpose of electing a member of Council any two Fellows or Associates shall be entitled to nominate a candidate. Every such nomination shall be made in accordance with such conditions and be lodged at the office within such period as may be determined from time to time by the Board, accompanied by a statement in writing signed by the person so nominated consenting to stand as candidate. If the number of persons nominated for election to Council does not exceed the number of vacancies to be filled the persons so nominated shall, as from the conclusion of the next Annual General Meeting, be deemed to be elected to the Council. In the event that the number of persons nominated for election exceeds the number of vacancies to be filled, a ballot shall be conducted by the Board by means of the issue of voting papers to all Fellows and Associates. Election of members of the Council by ballot shall be announced at and shall take effect from the conclusion of the next Annual General Meeting.
41. The period of office of a member of the Council or of an honorary officer in office at the date of the adoption of these Articles shall continue and expire as though the Articles under which he or she took up office continue to be in force, provided that in relation to subsequent eligibility for re-election, the provisions of these Articles shall prevail.
42. Subject to the preceding article, elected members of the Council shall serve for a term five years, provided that the Board may adjust this period in any particular case by notice issued prior to the relevant election process, to ensure appropriate turnover of members of the Council.
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43. Council members may serve two consecutive terms of office in this capacity, and at the end of such consecutive terms may not stand for election again unless one year will have elapsed before they can take up office again. Provided that:
(a) A retiring member of the Council shall continue in office until the close of the Annual General Meeting at which he retires.
(b) If a notice in writing by a member of the Council to the Institute of his resignation as a member of the Council is received at the Office after the last date in any year by which nominations must be lodged at the Office pursuant to Article 40 and before the Annual General Meeting in that year such resignation shall be deemed to take effect the day after the Annual General Meeting to be held in that year.
For the purpose of this Article the expression "term of office" shall not include a term of office held pursuant to an appointment to fill a casual vacancy under Article 44.
44. In the event of a casual vacancy occurring amongst the members of the Council, the Council may appoint a Fellow of the Institute to fill such vacancy, and the member of the Council so appointed shall hold office only until the next following Annual General Meeting, when he shall retire but shall be eligible for election.
45. In the event of any member of the Council failing to attend three consecutive meetings of the Council of which he has been duly notified, the Council may, unless his absence is due to circumstances which in the opinion of the Council justify his absence, resolve that he cease to be a member of the Council.
HONORARY OFFICERS
46. There shall be the following honorary officers of the Institute, namely, a President and two Vice-Presidents, who shall be elected by and from amongst the members of the Council, and who shall continue to be members of the Council during their period of office.
47. At a meeting of the Council preceding the date of the Annual General Meeting in each year, the Council shall elect from amongst its members with at least a year to serve a President to hold office from the close of the Annual General Meeting in that year until the close of the Annual General Meeting in the following year.
48. The President shall be eligible for re-election to office. No person shall hold the office of President for more than three successive terms provided that the Council may permit one further term in exceptional circumstances. A period of office held by a person pursuant to an election to fill a casual vacancy shall be disregarded for the purposes of this Article.
49. In the event of a casual vacancy occurring in the office of President, the Council shall elect one of the two Vice Presidents to fill such vacancy, and shall elect a replacement Vice-President. A person elected under this Article shall hold office only until the close of the Annual General Meeting next following, but shall be eligible for re-election.
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50. At a meeting of the Council preceding the date of the Annual General Meeting in each year, the Council shall elect from amongst its members with at least two years to serve a Vice-President to hold office from the close of the Annual General Meeting in that year until the close of the Annual General Meeting two years later, whereupon the person elected shall cease to hold the office of Vice-President.
51. A Vice President shall be eligible for re-election to office. No person shall hold office as a Vice-President for more than two successive terms. A period of office held by a person pursuant to an election to fill a casual vacancy shall be disregarded for the purposes of this Article.
52. In the event of a casual vacancy occurring in the office of Vice-President, the Council may elect one of it members to fill such vacancy. A person elected to fill any such vacancy pursuant to this Article shall hold office only until the close of the Annual General Meeting at which the person whose vacancy he is elected to fill would have ceased to hold office as Vice-President, but shall be eligible for re-election.
53. The members of the Council may be reimbursed all travelling, hotel and other expenses reasonably and properly incurred by them in attending and returning from meetings of the Council (or if applicable the Board) or any Committee of the Board or General Meetings of the Institute or in connection with the business of the Institute but shall not be entitled to any remuneration for their services as members of the Council or, if applicable, the Board.
THE BOARD 54. The management of the Institute shall be vested in a Board (herein called “the Board") consisting of:(a) The three members of the Council who are for the time being the President and Vice-Presidents of the Institute (or in the event of there being a vacancy in any of those offices, the person or persons appointed by the Council for this purpose from amongst the members of the Council); (b) The Chief Executive; (c) The Finance Director of the Institute (by whatever title known) or such other director as may be appointed for this purpose by the Board; and (d) either two or four persons co-opted by the Board for such period not exceeding two years as the Board may determine in each case, provided that at least half of the number of persons co-opted under this provision are members of the Council.
POWERS AND DUTIES OF THE BOARD
55. The Board shall have full responsibility for the conduct of the business and affairs of the Institute, and may exercise all such powers of the Institute as are not by the Statutes or by these Articles required to be exercised by the Institute in General Meeting, subject nevertheless to the provisions of the Statutes or these Articles and to such resolution, being not inconsistent with the aforesaid provisions, as may be made by the Institute in General Meeting; but no resolution made by the Institute in General Meeting shall invalidate any prior act of the Board which would have been valid if that resolution had not been made.
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56. The Board may delegate all or any of its powers either generally or for a specified purpose to any Committee established by the Board or to any person subject to such terms and conditions (including the power to sub-delegate and requirements for reporting back) as the Board may think fit. 57. The Board may appoint, on such terms and conditions as may be agreed between the parties concerned, such salaried staff in connection with the conduct of the business and affairs of the Institute and shall delegate to them such powers, authorities and discretions as are considered by the Board to be appropriate.
58. The Board may also appoint such professional and other advisers, acquire or rent such property or premises, and generally make any other appointments and expend such funds available to the Institute for the lawful objects of the Institute as it shall from time to time consider necessary or expedient.
59. The Board may from time to time and at any time by power of attorney appoint any company, firm or person or body of persons, whether nominated directly or indirectly by the Board, to be the attorney or the attorneys of the Institute to act for such purposes outside the United Kingdom and with such powers, authorities and discretions (not exceeding those vested in or exercisable by the Board under these Articles) and for such period and subject to such conditions as they may think fit, and any such power of attorney may contain such provisions for the protection and convenience of persons dealing with any such attorney as the Board may think fit and may also authorise any such attorney to delegate all or any of the powers, authorities and discretions vested in him.
60. The Board shall cause minutes to be kept for the purpose of recording:
(a) All appointments made by the Board;
(b) The names of the persons present at each meeting of the Board and of any Committee of the Board;
(c) All Resolutions and proceedings at all General Meetings of the Institute and of meetings of the Board and of any Committee of the Board.
DISQUALIFICATION OF MEMBERS OF THE BOARD
61. The office of a member of the Board shall be vacated if the member of the Board:
(a) Becomes bankrupt or makes any arrangement or composition with his creditors generally; or
(b) Ceases to be a director by virtue of any provision of the Act or becomes prohibited by law from being a director of any company or from being a charity trustee; or
(c) In the written opinion of a registered medical practitioner, becomes incapable by reason of mental disorder, illness or injury of managing and administering his own
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affairs or becomes subject to a court order which wholly or partly prevents him from personally exercising any powers or rights he would otherwise have; or
(d) Resigns his office by notice in writing to the Board; or
(e) If being a member of the Council, ceases to be a Fellow of the Institute; or
(f) Is removed on reasonable grounds by unanimous resolution of the other members of the Board; or
(g) Is directly or indirectly interested in any contract or proposed contract with the Institute and fails to declare the nature of his interest.
MEETINGS OF THE BOARD
62. The Board shall meet together for the dispatch of business, adjourn, and otherwise regulate its meetings as it thinks fit. Questions arising at any meeting shall (except as otherwise provided in these Articles) are decided by majority vote. In the case of an equality of votes the chairman of the meeting shall have a second or casting vote. 63. A member of the Board shall not be entitled either to vote in respect of any contract or proposed contract with the Institute in which he is interested or to be counted in the quorum present at any meeting at which such contract or proposed contract is discussed.
64. The Chief Executive shall on the requisition of any two or more of the members of the Board summon a meeting of the Board by notice served upon all members of the Board.
65. The quorum necessary for the transaction of the business of the Board at a physical meeting shall be three members of the Board provided that a majority shall be members who are also members of the Council.
66. The President or failing him any Vice-President shall chair all meetings of the Board.
67. The Chief Executive shall send to each member of the Board, a notice of each meeting of the Board and an agenda paper of the business to be transacted at such meeting as soon as is practicable before such meeting. He shall also, as soon as possible after any meeting of the Board, send a copy of the minutes thereof to each member of the Board.
68. The Board may appoint the chairman of the meeting of any committee appointed by the Board. If no such chairman is appointed or if at any meeting the chairman is not present and willing to act within fifteen minutes after the time appointed for holding the same, the members of the committee present may choose one of their number to be Chairman of the meeting.
69. A committee of the Board may meet and adjourn as it thinks proper. Questions arising atany meeting shall be determined by a majority of votes of the members of the committee present, and in the case of an equality of votes the chairman shall have a second or casting vote.
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70. All acts bona fide done by any meeting of the Board or of a committee of the Board or by any person acting as a member of the Board shall notwithstanding that it be afterwards discovered that there was some defect in the appointment of any such member of the Board or person acting as aforesaid, or that they or any of them was disqualified, be as valid as if every such person has been duly appointed and was qualified to be a member of the Board.
71. A resolution in writing, signed by all the members of the Board for the time being entitled to receive notice of a meeting of the Board, shall be as valid and effectual as if it had been passed at a meeting of the Board duly convened and held, and any such resolution may consist of several documents in the like form each signed by one or more of the members of the Board. In this Article references to a document being "signed" include it being approved by letter, facsimile or electronic mail.
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72. (1) A meeting of the Board may consist of a conference between the members of the Board, some or all of whom are in different places, provided that each member who participates is able:
(a) To hear each of the other participating members addressing the meeting; and
(b) If he so wishes, to address all of the other participating members simultaneously, whether directly, by conference telephone or by any other form of communications equipment (whether in use when these Articles are adopted or not) or by a combination of those methods.
(2) A quorum is deemed to be present at a meeting of the Board under this Article if at least three members, including a majority who are also members of the Council, are participating.
(3) A meeting under this Article is deemed to take place at the place where the largest group of participating members is assembled or, if no such group is readily identifiable, at the place from where the chairman of the meeting participates.
CHIEF EXECUTIVE
73. The Chief Executive shall be appointed by the Board for such term at such remuneration and upon such conditions as it may think fit, and subject to any relevant contract a Chief Executive so appointed may be removed by it. The Board may also appoint an assistant or Deputy Chief Executive and any person so appointed may act in place of the Chief Executive in the event of vacancy, sickness or absence. The Chief Executive may delegate functions to other employees of the Institute.
ACCOUNTS
74. The Board shall cause accounting records to be kept in accordance with sections 386 and 387 of the 2006 Act.
75. The accounting records shall be kept at the Office or, subject to sections 388 and 389 of the 2006 Act at such other place or places as the Board thinks fit, and shall always be open to the inspection of any members of the Board.
76. The Board shall from time to time determine whether and to what extent and at what times and places and under what conditions or regulations the account and books of the Institute or any of them shall be open to the inspection of Members and no Member shall have any right of inspecting any account or book or document of the Institute except as conferred by Statute or authorised by the Board or by an Ordinary Resolution of the Institute in General Meeting.
77. The Board shall, in accordance with the Statutes, cause to be prepared and to be laid before the Institute in General Meeting, such Income and Expenditure Accounts or other Accounts, Balance Sheets and reports as required by the Statutes.
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78. A copy of the Institute's annual accounts, together with a copy of the Auditor's Report and the Report of the Board, shall, not less than twenty-one days before the date of the meeting at which copies of those documents are to be laid in accordance with the Statutes, be sent or made available electronically to every Member of the Institute and such other persons as required by the Statutes: Provided that this Article shall not require a copy of these documents to be given to anyone who is not entitled to receive notices of General Meetings of the Institute.
AUDIT 79. Auditors shall be appointed and their duties regulated in accordance with the Statutes.
NOTICES The Institute can deliver a notice or other document, to a Member or other person:
(a) By delivering it by hand to his registered address, or (if he has no registered address within the British Isles) to the address, if any, within the British Isles supplied by him to the Institute for the giving of notice to him;
(b) By sending it by post or other delivery service in an envelope (with postage or delivery paid) to his registered address, or (if he has no registered address within the British Isles) to the address, if any, within the British Isles supplied by him to the Institute for the giving of notice to him;
(c) By electronic mail to an address notified to the Institute in writing;
(d) Via a website the address of which shall be advertised;
(e) By fax to a fax number notified to the Institute in writing; or
(f) By advertisement in at least two national newspapers.
This article does not affect any provision in any relevant legislation or the articles requiring notices or documents to be delivered in a particular way.
If a notice or document is delivered by hand, it is treated as being delivered at the time it is handed to or left for the Member.
If a notice or document is sent by post or other delivery service not referred to below, it is treated as being delivered:
(a) 24 hours after it was posted, if first class post was used; or
(b) 72 hours after it was posted or given to delivery agents, if first class post was not used.
If a notice or document is sent by electronic mail, it is treated as being delivered at the time it was sent.
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If a notice or document is sent by a website, it is treated as being delivered when the material was first made available on the website, or if later, when the recipient received (or is deemed to have received) notice of the fact that the material was available on the website.
If a notice or document is sent by fax, it is treated as being delivered at the time it was sent.
If a notice is given by advertisement, it is treated as being delivered at midday on the day when the last advertisement appears in the newspapers.
Notice of every General Meeting shall be given in any manner hereinbefore authorised to:
Every Member except those Members (having no registered address within the British Isles) who have not supplied to the Institute an address within the British Isles for the giving of notices to them;
And the Auditors for the time being of the Institute.
No other person shall be entitled to receive notices of General Meeting.
INDEMNITY
82. Subject to the provision of and to the extent permitted by the Statutes, every Board member shall be indemnified out of the assets of the Institute against any liability incurred by him in the proper execution or discharge of his duties, powers or office, but this indemnity:
(a) Shall not apply to any liability to the extent that it is recovered from any other person;
(b) Is subject to such Board member taking all reasonable steps to effect such recovery, so that the indemnity shall not apply to the extent that an alternative right of recovery
(c) Is capable of being enforced; and (d) Shall not confer any indemnity which would be prohibited or rendered void by any
provision of law.
Company number
25
1262100
THE COMPANIES ACT 2006
COMPANY LIMITED BY GUARANTEEAND NOT HAVING A SHARE CAPITAL
REVISED ARTICLES OF ASSOCIATION
OF
THE PENSIONS MANAGEMENT INSTITUTE (Adopted by Special Resolution on 9th March 2010 and coming into effect on 1 April 2010)
Company incorporated the 8th day of June, 1976
No. 126210
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APPENDIX B - CODE OF PROFESSIONAL CONDUCTMembership of the Institute is a privilege and the disciplines and standards of behaviour expected of Members must uphold the reputation of the profession and the Institute. This reputation could easily be marred by the shortcomings of a few Members. The interests of employers and customers of those Members whose business is that of offering advice or providing services must also be protected. The Board therefore believes that Members will welcome guidance upon matters of a professional nature and issues this Code of Professional Conduct which represents those standards which can be expected to be the minimum necessary to uphold the professional integrity of Members.
To a certain extent, professional conduct depends on basic attitudes and morality. No code can cover every set of facts and circumstances. Moreover, one danger of attempting to set a code is that anything that is not specifically forbidden may come to be regarded as permissible - this is not the case. One of the fundamental principles applying to a Member is that s/he observes the spirit as much as the letter of the Code of Professional Conduct. The hallmark of a true professional is his/her honesty, integrity, independence and impartiality.
Without prejudice to these general requirements, the following standards shall apply to all Members.
1. Members must at all times conduct themselves in a manner consistent with the good reputation of the profession and of the Institute. This includes:
a. Observing the Governing Instruments of the Institute as set out in its Governance document;
b. Acting in compliance with all relevant statutory, regulatory and other legal requirements;
c. Recognising any other professional customs or practices, whether or not constituting legal requirements, including the guidelines or codes of conduct of other professional or regulatory bodies, which affect them or those with whom they have contact during the course of their work;
d. Acting objectively in all work they undertake, observing high standards of integrity and fair dealing;
e. Conducting their professional work with proper regard to the technical and professional standards expected of them;
f. Not accepting or offering gifts, hospitality or services which could, or may appear to, imply an improper obligation.
2. Members must:
a. Not mis-represent their membership of the Institute or claim that they have qualifications which they do not hold
b. Ensure that any advertisement or other public announcements with which their names or qualifications are associated will not bring the Institute into disrepute
c. Ensure that it is clear that they are professionally responsible for any advice which they give or services which they provide and that they can be identified as the source of the advice or services
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d. Not act in situations where they have insufficient relevant experience except in co-operation or with the guidance of a suitably qualified and competent person.
3. Members who, in particular situations, describe the advice or services they offer as independent, where the use of the word independent is not defined by regulation or law, must be free and seen to be free of any influence which might limit or affect the content or scope of their advice or services.
4. When dealing with a customer or client, Members must:
a. Take all reasonable steps to obtain all the information necessary to form a judgement;
b. Take into account the best interests of the customer or client before making any recommendations;
c. Behave in a manner consistent with the obligation to act impartially; andd. Disclose any constraints that could affect or appear to affect the nature or
scope of their advice.e. Respect confidential information from any source and not use such
information for personal or professional advantage andf. Treat people fairly which means observing equality and diversity laws,
challenging and reporting unlawful or unfair discrimination and, where possible, adapting facilities to accommodate customers with disabilities or specific requirements.
5. Members must co-operate with the Disciplinary Panel if called upon to do so in an open, clear and co-operative manner.
6. Members are expected to:
a. Take every appropriate opportunity to improve their professional knowledge and comply with the annual continuing professional development regulations
b. Conduct themselves with courtesy and consideration towards all persons with whom they come into contact in the course of their professional work
c. Encourage awareness amongst all of those with whom they are involved in the course of their work that Members of the Institute are bound by this Code of Professional Conduct
d. Support and encourage the work of the Institute in developing and maintaining both this Code in particular and the highest professional standards in general.
e. Encourage others to attain their professional qualification
Any complaint of misconduct by a Member made to or raised by the Institute will be processed in accordance with Appendix H of the Governance document. Any Member who is in doubt as to the steps which should be taken in a particular case where professional conduct is in question, or any Member who would like the advice of a senior Member of the Institute on professional conduct, should communicate with the Head of Membership & IT.
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The Pensions Management Institute
4-10 Artillery Lane
London E1 7LS
Telephone: 020 7247 1452
Facsimile: 020 7375 0603
E-mail: [email protected]
www.pensions-pmi.org.uk
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Appendix C - MEMBERSHIP REGULATIONS
1. RegulationsThese regulations are pursuant to the powers set out in the Articles of Association approved by Special Resolution of Council on 9 March 2010.
2. DefinitionsArticle 3 of the Articles of Association of the Institute shall apply to these Regulations and unless the context otherwise requires:
“Appendix” means an Appendix to these Regulations and reference to these Regulations includes the Appendices
“Code of Professional Conduct” shall mean the code of professional conduct of the Institute as may be amended from time to time.
“Membership Committee” means a committee of the Board established under the Institute’s Articles of Association
“Regulatory Body” means any person, tribunal or body whose purposes or functions include promotion and maintenance of standards within a profession or trade or market or industry. The expression includes, without limitation, the Financial Services Authority, any self regulatory organisation, any professional body (whether recognised under the Financial Services and Markets Act 2000 or not), any investment exchange and Lloyds of London.
“Relevant Experience” shall be determined as provided in these Regulations
“Continuing Professional Development” shall have the meaning set out in Appendix I
MEMBERSHIP Classes of MembershipThe Members of the Institute shall consist of the following classes:
Votingo Fellowso Associates
Non-Votingo Studentso Holders of DipPMI and CertPMI designationso The PMI Trustee Groupo IPTGo Affiliates
Unless the context otherwise requires, references to “Members” and “Membership” in these Regulations shall be to all of the above classes.
Subject to these Regulations, the Board may in respect of any non-voting class of membership:
a. Change the name or title of any class of membership
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b. Change the criteria or terms of any class of membershipc. Introduce new classes of membership.
Application for MembershipApplications for membership shall be made in writing using such application form as the Board from time to time determines.
DispensationThe Board may make regulations granting dispensation in whole or in part from any eligibility requirements.
Undertaking on AdmissionAny person admitted to any class of membership of the Institute shall give an undertaking on admission in writing in such terms as Regulations may prescribe. Such undertaking on admission will include that:
1. S/he will abide by the Regulations and Code of Conduct S/he will not at any time after ceasing to be a Member of the Institute use or permit to be used in conjunction with:a. his name; orb. the name of any organisation with which s/he may be associated
Any Designation, Designatory Initials or expression denoting or suggesting any past or present membership of or connection with the Institute that s/he or the organisation is not otherwise entitled to use
2. S/he will pay all monies (including but not limited to any fee, subscription, levy, fine or other penalty or reimbursement in accordance with any scheme of compensation) payable to the Institute whilst a Member, promptly, and will remain liable to pay any monies outstanding on ceasing to be a Member and
3. S/he will comply with such other requirements as the Board shall reasonably determine.
Relevant ExperienceIn determining whether an applicant for membership has relevant experience the Institute takes a broad view of what experience is relevant, reflecting the diverse nature of the retirement benefits industry. Practitioners in other related areas of investment business may be treated as having relevant experience.
Where a number of year’s relevant experience is required, the aggregate period rather than the continuous period will be taken into account.
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Use of Titles and Designatory Letters
The following shall be entitled to use Designations and Designatory Initials: Fellow: the Designatory Initials FPMI and Designation “Fellow of the Pensions
Management Institute” Associate: the Designatory Initials APMI and Designation “Associate Member
of the Pensions Management Institute” Diploma Qualified: the Designatory Initials DipPMI and Designation “Holder of
a Diploma of the Pensions Management Institute” Certificate Qualified: the Designatory Initials CertPMI and Designation “Holder
of a Certificate of the Pensions Management Institute
Members of the PMI Trustee Group, IPTG, Affiliates and Students will not be entitled to use Designatory Initials or Designations.
Other DesignationsThe Board may issue guidance from time to time about the use of Designations
Use of Designatory Initials by Members.A person who has ceased to be a Member (whether on expulsion, lapsing of membership, resignation or otherwise) shall immediately cease to use any titles or designatory letters associated with membership.
A person who has ceased to be a Member (whether on expulsion, lapsing of membership, resignation or otherwise) is no longer entitled to refer to themselves as a Member either orally or in writing.
Age and RetirementNo person may become a member of the Institute unless aged 18 or over.
A Member (other than a Student) who retires from active business may remain a Member of the Institute.
Refusal of Application for MembershipThe Board shall refuse an application for membership unless satisfied as provided in these regulations. An applicant whose application for membership is refused shall be given brief reasons for the refusal.
An applicant whose application is refused may not re-apply for the same class of membership within one year of the date of refusal, except at the discretion of the Membership Committee.
An applicant who has been refused admission to the Institute or to another class of membership) may appeal, in writing, to the Membership Committee. Any such appeal must be made within 21 days of the date of refusal (or of the date on which reasons for refusal is given if later) and shall set out in full the grounds for appeal.
The applicant shall be informed of the date on which the appeal will be considered but may not attend personally unless requested by the Membership Committee. S/he may make written representations to be considered by the Membership Committee and, if s/he does, must deliver them to the Secretary at least 7 days before the date on which the appeal is considered.
If the appeal is rejected, the Membership Committee shall give brief reasons.
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Student MembersAdmission to be a Student member is at the discretion of the Membership Committee. Membership of the Institute is mandatory for any person who indicates s/he intends to undertake any PMI qualification
Without limiting the discretion granted to the Board under paragraph student membership will be refused to someone who has been expelled from membership in a non-student category.
CONTINUING MEMBERSHIP RIGHTS AND OBLIGATIONSMembers Bound by ConstitutionEvery person becoming a Member of the Institute shall undertake to be bound by the PMI Governance document
FeesEach applicant for admission as a Member shall pay such joining fee (if any) as the Board determines from time to time. Each Member shall pay such annual subscription (if any) as the Board determines from time to time.
No application for admission as a Member shall be considered by the Board unless the applicant has paid any joining fee and the annual subscription payable in respect of the year in which s/he seeks admission.
Annual subscriptions payable shall be payable by such date as the Board from time to time determines. The annual subscription due from persons who are admitted to Membership after that date may be reduced as determined by the Board.
If any Member fails to pay an annual subscription applicable to him/her within two months of the date on which it has become payable, s/he shall pay in addition to the annual subscription such late payment fee (not exceeding the annual subscription due) as the Board may from time to time determine.
Unless the Board otherwise determines, a person who has ceased to be a Member only for failure to pay the annual subscription (or any late payment fee) may be re-admitted upon payment of a Membership fee and rejoining fee as specified by and according to timescales set out by the Board and upon completion of a new application as appropriate.
Unless the Board otherwise determines a Member may apply to upgrade his Membership subject to eligibility. In such cases the subscription already paid in the year of transfer to a higher category will be credited against fees due in respect of the Membership category in to which the Member is transferring.
InformationEach Member shall notify the Institute of:
(a) His full name and home address;(b) His place of business or employment and the address at which s/he carries on
business or is employed (or, if more than one, the principal address);(c) His e-mail address (if any).
and of any change in (a), (b) or (c) above in the course of his/her Membership.
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Any notices or other communications to be given or sent by the Institute to a Member under these Regulations may be sent to either of the addresses notified by the Member under paragraph (a) or (b) above. Such notices or communications may be sent by hand delivery or by pre-paid post or by e-mail.
Notices or other communications will be deemed to have been received:
(a) If sent by hand delivery - at the time of delivery;(b) If sent by second class pre-paid post - 48 hours after the date of posting;(c) If sent by e-mail – two working days after sending provided that a delivery(d) Receipt or other acknowledgement is received by the Institute.
Notices or other communications may be given or sent by the Institute to a Member by publication in the Institute’s journal or, but only in relation to the Annual General Meeting, on its website. If so published, the notice or other communications will be deemed to have been received one month after the date on which the journal was sent to the Member or if published on the Institute’s website one month after the date on which it was so published. For these purposes the Institute’s website shall be such site as is specified from time to time in the Institute’s journal.
Each Member shall promptly notify the Institute of any matter which may affect his suitability to remain a Member of the Institute and of any other matters of which the Institute may reasonably require information.
The information to be notified to the Institute under this paragraph must be given promptly in writing.
The Institute may inform an appropriate Regulatory Body of any information (including any document) it receives from a Member or other source in connection with these Regulations and may report the outcome of any disciplinary proceedings against Members.
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Appendix D – G
Terms of Reference for PMI Committees are published separately for each committee
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Appendix H Disciplinary Regulations
Definitions
In this Appendix, words defined in the Articles or the Regulations have the meanings ascribed to them there and:
“Complainant” means a person or body lodging a complaint of alleged misconduct against a Member, and may include the Institute;
“Laws of the Institute” means the Articles, the Regulations, the Code of Conduct and all other regulatory instruments of the Institute for the time being in force;
“Misconduct” means failure to comply with the Laws of the Institute or a conviction, finding or sanction of any competent court, tribunal or authority, which is considered by the Institute to be relevant to membership;
“Respondent” means a Member against whom a complaint has been made.
Appointment of Screener and Committees and Panels
1.1 The Board shall appoint the Head of Membership and IT or another person, who shall not be a member of the Board, to undertake the preliminary investigation of complaints (“the preliminary screener”); and shall appoint a Disciplinary Committee and an Appeals Committee. The Committees shall each consist of up to twelve members and shall include persons who are not Members of the Institute. The Appeals Committee shall include at least one person having a legal qualification satisfactory to the Board. Any member of the Disciplinary or Appeals Committees shall be eligible for re-appointment, subject to a maximum of [nine] years’ consecutive service. Casual vacancies may be filled at the Board’s discretion for any period of less than one year ending at the next meeting at which appointments or re-appointments fall to be made.
1.2 The preliminary screener shall empanel members of the Committees to form hearing Panels as necessary. A person appointed to a Panel may not sit as a member of that Panel in any case where he has participated previously in its consideration (unless sitting as a member of the Disciplinary Panel reconvened following a direction from an Appeal Panel to hear new evidence), or where he has a personal connection with the respondent or complainant.
Quorum and Chairmanship
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1.3 The quorum for a hearing by a Disciplinary or Appeal Panel shall be three, including, at least one member who is not a Member of the Institute, and, in the case of the Appeal Panel, a member who is legally qualified. The Board may appoint, or may provide for the appointment of, the Chairman of each Committee who shall (unless absent) chair hearings of the respective Panels.
Procedure
2. A complaint (whether raised by a third party or by the Institute) against a Member shall be referred to the preliminary screener who shall consider it and, having made such further enquiries as he or she shall see fit, shall reach one of the following findings:
(a) that the complaint has not been made in good faith (i.e. it is vexatious, frivolous, spurious, untruthful etc.) when the complaint shall be rejected; or
(b) that there is no prima facie case to answer when the complaint shall be rejected; or
(c) that there is a prima facie case to answer but the complaint is, or appears to be, the subject of, or substantially related to, current or probable proceedings before the courts or before any other professional, regulatory or other tribunal when the complaint shall be ‘stayed’ until such proceedings have been concluded;
(d) that there is a prima facie case to answer and the complaint be referred to a Disciplinary Panel.
3. A complaint referred to the Disciplinary Panel shall be heard as soon as practicable. The complainant and respondent (with at least 14 days notice) shall be advised of the date and place of any proposed hearing, and the respondent shall in addition be advised of the complaint that has been made against him and that he is entitled to attend the hearing, to speak and give evidence on his own behalf or to be represented, and to call and cross examine witnesses; and that if he does not attend the hearing the matter may be determined in his absence. Subject to the Laws of the Institute, the Disciplinary Panel may decide its own procedure and the Chairman may decide in any particular case whether the proceedings shall be open, in whole or in part, to the public, who may be excluded at any time at his discretion. The Board may approve, or may empower the Panel to make, consistent with the Regulations, rules relating to any aspect of such procedure.
4. The Disciplinary Panel shall decide, having heard the case, whether the complaint is upheld, whether wholly or in part. If so upheld, the Panel shall direct that any one or more of the following sanctions be imposed:
(a) the respondent be admonished;
(b) the respondent be reprimanded;
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(c) all or any of the respondent’s privileges of membership be withdrawn for a specified period of time;
(d) the respondent be fined an amount not exceeding a maximum determined from time to time by the Board;
(e) the respondent be suspended from membership for a specified period;
(f) the respondent be expelled from membership of the Institute;
(g) the respondent’s membership be made subject to conditions; or
(h) if the respondent is a participant in the AAP, the SPS of the respondent be withdrawn.
Appeal
5. A respondent may appeal in writing, within 14 days of receipt of notification of the Disciplinary Panel’s findings, to an Appeal Panel against the upholding of a complaint by the Disciplinary Panel or against the sanction imposed. An appeal against the upholding of a complaint or against a sanction may also include an appeal against an order for costs. The Appeal panel shall not hear evidence, but shall consider whether the complaint has been properly heard under the Laws of the Institute, whether the rules of natural justice and any relevant principles of human rights have been satisfactorily observed, and whether the Disciplinary Panel has reached a reasonable decision in the circumstances. If the Appeal Panel concludes that the handling of the complaint has been unsatisfactory in terms of this paragraph, it may overturn the finding of the Disciplinary Panel or remove the sanction imposed on the respondent or substitute a different sanction from amongst those available to the Disciplinary Panel.
6. If new evidence is put before the Appeal Panel and that Panel is satisfied that that evidence could not reasonably have been made available to the Disciplinary Panel at the relevant hearing, then the Appeal Panel may direct that the Disciplinary Panel reconvene to hear the new evidence. The rights of appeal of the respondent under this Regulation shall apply equally to the outcome of a reconvened hearing of the Disciplinary Panel.
7. Subject to the Laws of the Institute, the Appeal Panel may decide its own procedure, and the Chairman may decide in any particular case whether the proceedings shall be open, in full or in part, to the public, who may be excluded at any time at his discretion.
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Notification and Publication of Decisions
8. Decisions of the Disciplinary Panel and Appeal Panel shall be notified to the respondent and complainant in writing. The Disciplinary Panel and the Appeal Panel shall keep records of their proceedings, and their decisions shall be published in accordance with the following paragraph.
9. Details of disciplinary cases dealt with by the Institute, where a complaint is upheld wholly or in part, may be published in such of the Institute’s publications whether printed or electronic as the Disciplinary Committee may determine, provided that a Disciplinary Panel may in exceptional circumstances recommend that publication is inappropriate.
10. The details to be published may not extend beyond the name of the respondent, the misconduct alleged and the outcome and sanction (if any) in any case. Such details may also be provided to other regulatory authorities, consistent with the obligations of the Institute but subject to such data protection legislation as may from time to time apply to records held by the Institute and to the terms of section 165 of the Financial Services and Markets Act 2000.
Costs
11. If a Disciplinary Panel finds misconduct or an Appeals Panel dismisses an appeal, the Panel concerned may order the respondent to pay to the Institute such costs as it may in its absolute discretion determine. Costs so ordered must be paid within 28 days of the date of the Disciplinary or Appeals Panel’s order (or such longer period as the Panel determines in any particular case). An Appeal Panel may cancel or modify an order for costs imposed by a Disciplinary Panel.
If a Member who has lodged an appeal fails to pay costs as ordered by the Disciplinary Panel, the Appeals Panel may (whether or not the order to pay costs is subject to appeal) dismiss the appeal.
Rules
12. Any matter of disciplinary procedure may be further prescribed by rules made by the Disciplinary Committee or Appeal Committee as appropriate or, during any hearing, by direction of the Panel chairman, provided that no such prescription or direction shall be of effect if it is inconsistent with the Articles of Association or Regulations of the Institute or this Appendix.
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APPENDIX IContinuing Professional Development
PMI Scheme RegulationsParticipationWith the exception of those Fellows and Associates belonging to the “retired and non-working” categories, participation by Fellows and Associates is mandatory. Participation will not be mandatory for Diploma members.
The CPD year runs from 01 January to 31 December. Members must log completion of CPD with PMI by 31 January annually.
A member may participate in the CPD scheme required by another professional body. In cases where a member is participating in such a CPD scheme, (for example the PMI Accredited Adviser Programme, Actuarial Profession or Law Society schemes), the scheme will be deemed to have met PMI’s CPD requirements. The member will be required to complete the appropriate declaration form to confirm that CPD undertaken as part of the alternative scheme meets the standards required by PMI.
Standard to Be AchievedParticipants will be required to achieve a minimum of 25 hours relevant CPD per year. Activities which can be counted as appropriate for CPD and the number of hours allocated to each activity (at the discretion of the member up to the maximum value given in the framework) may be found in the table below
PMI reserves the right to verify a sample of CPD completed by a random number of members.
Relevant CPDAt least 50% of subject matter counted as CPD should focus on pensions and retirement savings subjects and the activity or content should be relevant to the member’s experience and role. However, wider aspects of the sector can be included in the remaining 50%. Training in subjects such as management skills, the application of IT, general financial, business ethics and legal matters are all suitable for the CPD scheme. Routine day to day work cannot count towards CPD.
When considering seminars, training courses (on-line and off-line) or other learning events and their relevance to CPD, the basic criteria to apply are summarised below.
The course should be relevant to pensions professionals in their work, including the development of business and management skills
The content should be of sufficient level to benefit people with at least three years pensions experience
The content should not be related to specific company issues and processes. The course should have a defined learning need and learning outcome. Be capable of being independently verified and provide evidence of completion
Recognition of CompletionMembers who have met the CPD scheme requirements will be issued with a certificate of completion. An annotation will also be made against their name in the members directory and searchable through the new website when launched.
Recording CPDMembers are asked to keep a log of their own CPD. Recording should be done on PMI’s CPD system accessed through the PMI website.
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In cases where CPD has been completed in previous years but not recorded, a member may apply to PMI’s membership department to have the CPD verified and a paper record completed retrospectively.
Failure to Complete CPDIf a member does not record the completion of CPD by 31 January annually, the process described below will be invoked.
PMI’s Membership department will contact the member(s) concerned to understand the reason for non-compliance. If the member(s) require assistance in recording their CPD, they will be given the necessary help.
In the event that a member has simply not completed the necessary CPD, the member will receive a letter from the CEO of the PMI requiring the member to make up the shortfall in the current year. This activity will be reported to the Membership Committee.
If a shortfall should occur for a second year in any three year period, or the shortfall is not made up, a similar letter will be forwarded from the Chair of the Membership Committee. This letter will require the member to account for the non-compliance to the Chair of the Membership Committee.
In the event that a third non-compliance occurs within a five year period, the member will be subject to formal disciplinary action that may result in the designated initials being withdrawn from the member. The disciplinary panel will determine the criteria for re-admission to PMI which, as a minimum, is likely to involve completion of two successive years of CPD followed by a formal request for re-admission.
CPD Activities
Activity Definition Comments
Examination setting or marking
Setting or marking any examination offered by an awarding organisation which is business related
Maximum value of 15 hours CPD per year
Leading Courses, Workshops, Seminars, Web Forums & Webinars as subject matter expert
Leading presentations or discussions on all or part of an event covering relevant subjects
Maximum value of 15 hours CPD per event per year
Further Education Attending education premises or using distance learning technology to complete education programmes offered by an awarding organisation with formal external assessment and recognised qualification on successful completion
Maximum value of 15 hours CPD per course per year
Participating in PMI, IPTG or Regional Committees and Think Tanks or as Study Support Partners
Member of any committee in PMI’s or IPTG organisational structure or regional structure
Maximum value of 15 hours CPD per year
Publishing Articles Writing articles, manuals, reports on relevant subjects which are available for use by all PMI members (e.g.: PMI News) either in print or on-line.
Maximum value of 15 hours CPD per article per year
Mentoring Providing coaching, tutoring, instruction or guidance to trainees and students
Maximum value of 10 hours CPD per year
Watching PMI TV, Reading published
Programmes and articles on relevant subject published in technical, trade, journals, financial
Maximum total value of 10 hours CPD per
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articles, informal on-job training, informal study conducting research or undertaking TPAS case work
publications or on-line news services – list to be provided
year for all activities
Attending relevant Seminars, Training Courses and Workshops, including Regional Group meetings, or completing on-line courses
Events which require active participation and have clear learning outcomes
Maximum value of 7 hours CPD per event per year
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The PMIAAP CPD Scheme Regulations
This programme is entirely separate from PMI’s own CPD programme. Maintaining professional competence through CPD is a key element of the RDR regime. If CPD requirements are not met, an SPS cannot be issued.
Standard to be AchievedTo meet the requirements for retail investment advisers set by FSA, members of the PMI AAP are required to undertake a minimum of 35 hours of appropriate CPD. This is further divided into:
A minimum of 21 hours per year of structured CPD. Examples are:o Courseso Seminars, lectures and conferences o Workshopso Web based seminars or e-learning that require participation of 30 minutes or more with
specific learning outcomes tested on completion of the course A minimum of 14 hours per year unstructured CPD. Examples are:
o Conducting research relevant to the advisers roleo Reading industry or other relevant materialo Participating in professional coaching or mentoring sessions
The table below provides guidance on structured and unstructured CPD.
All CPD undertaken as part of the AAP programme must:
Be relevant to the advisers role and any anticipated changes Maintain knowledge by reference to current qualification standards Contribute to the adviser’s professional skill and knowledge Address any gaps identified in the adviser’s technical knowledge Have written learning objectives and documented learning outcomes Be measurable and capable of verification by PMI
CPD Activities - Structured and Unstructured CPD
Structured CPD Definition Unstructured CPD
Definition
Examination setting and marking
Setting and marking any examination offered by an awarding organisation which is business related
Reading published articles
Articles on relevant subject published in technical, trade, journals, financial publications or on-line news services – list to be provided
Publishing Articles Writing articles, manuals, reports on relevant RDR subjects which are available for use by all PMI members (e.g.: PMI News) either in print or on-line
Mentoring Providing coaching, instruction or guidance to trainees and students
Leading Regional Groups or Courses, Workshops, Seminars, Web Forums & Webinars as subject matter expert
Events which require active participation and have clear learning outcomes that are relevant to RDR
Informal study Use of DVDs, TV programmes, general on-line content e.g.: PMI TV
Attending Regional Groups or Courses,
Events which require active participation and
On-Job Training Participation in informal training sessions at place
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Workshops, Seminars, Web Forums & Webinars
have clear learning outcomes that are relevant to RDR
of work.
Business Education Attending education premises or using distance learning technology to complete business education programmes offered by an awarding organisation with formal external assessment and recognised qualification on successful completion
Participating in PMI Committees
Member of any committee in PMI’s organisational structure
E-learning On-line courses which set clear objectives and learning outcomes that are relevant to RDR and are subject to structured testing/assessment
Research Conduct research on a relevant subject
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APPENDIX J - EQUAL OPPORTUNITIES STATEMENT
As a nationally recognised professional body and as an awarding organisation, the Institute is responsible for ensuring that its Members, staff, and those applying for Membership and its qualifications are treated fairly and that there is equality of opportunity regardless of the individual’s gender, racial origin, religious persuasion, sexual orientation or disability.
The Institute will ensure avoidance of inequality:
In the selection, recruitment and training of all those working for or on behalf of the Institute;
Through the monitoring of practices, procedures and data relating to the operation of the organisation, its courses and assessment materials;
In the format and content of all syllabuses, regulations and examinations; In the preparation, production and distribution of all material; By the relaxation of any conventional rules and regulations which serve to
inhibit the performance of those candidates with special needs in relation to candidates not so disadvantaged, provided that such action does not have a deleterious effect on the standard, quality and integrity of assessments.
In operating its procedures, in formulating its assessment methods and in producing materials, the Institute will make every effort to provide a format, language or approach, which in relation to an individual’s gender, racial origin, religious persuasion, sexual orientation or disability:
Is not offensive to members of particular groups; Is capable of being readily understood by all; Has the same meaning for all; Implies no stereotyped or biased attitudes; Includes terms or concepts or forms of presentation which are not more
familiar to some groups than others; Does not employ assessment techniques that are easier for some groups of
candidates to use.
The Pensions Management Institute fully supports the principles of equal opportunities and is committed to satisfying these principles in all its activities and in its published material.
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Appendix K – PMI Accredited Adviser Programme (PMI AAP)
Introduction This Appendix sets out the regulations for the PMI Accredited Adviser Programme (PMI AAP). They form part of the overall governance of PMI, membership of which is a pre-requisite for joining the PMI AAP. The PMI AAP was launched on 1 February 2012.
Requirements of the Retail Distribution Review (RDR)The RDR was a key part of FSA’s consumer protection strategy. The aim was to establish a resilient, effective and attractive retail investment market that consumers can have confidence in and trust.
Since 31 December 2012, retail investment advisers have needed to:
Hold a Statement of Professional Standing (SPS) from an Accredited Body Hold an appropriate qualification, including any qualification gap-fill Complete at least 35 hours of continuing professional development by the end of 2013 and
annually thereafter Subscribe to the ethical requirements of the Approved Persons Regime
Accredited Body (AB)The role of an accredited body has been defined by the FCA.
In order to become an Accredited Body (AB), an organisation must demonstrate to FCA that it has met four requirements to:
1. Act in the public interest and further the development of the profession; 2. Carry out effective verification services on behalf of FCA; 3. Have appropriate systems and controls in place and provide evidence to FCA of continuing effectiveness; and 4. Co-operate with FCA on an ongoing basis
PMI has AB status and is conducting this activity under the name of the PMI Accredited Adviser Programme (PMI AAP).
Terms and Conditions of the PMI AAPAll individuals who wish to participate in the PMI AAP must:
Be members of PMI as set out in the Membership Regulations, Appendix C to the PMI Governance Document. This includes the following membership categories: Affiliate, Student, Certificate, Diploma, Associate and Fellow. As such, they must conform to PMI’s membership regulations, code of professional conduct (Appendix B to the Governance Document), terms and conditions and any other relevant requirements that may be stipulated from time to time by PMI.
Confirm and provide documentary evidence, if requested, that they hold an Appropriate Qualification (as defined by the FCA) and have completed any associated gap fill requirements
Confirm compliance with the Approved Persons regime on application and annually thereafter in a format defined by PMI
Maintain membership in good standing including payment of all fees and subscriptions Complete the CPD required for PMI AAP purposes and any additional CPD requirement for
their PMI membership status (defined separately). Submit an annual declaration confirming completion of CPD requirements and maintain
appropriate evidence in accordance with guidelines and submit it along with all other relevant information when required to do so for the purpose of verification.
Understand that they are bound by the disciplinary process set out in Appendix H of the PMI Governance Document
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Understand that information regarding the operation of the PMI AAP and the conduct of participants may be shared with the FCA and their firm(s) where it relates to professional standards
Understand that if at any time PMI is provided with false information by the individual pertaining to any of the above conditions or any of these conditions are otherwise contravened, PMI will invoke its disciplinary process. Depending upon the nature of the offence and the findings of a Disciplinary Panel, if required, PMI reserves the right to expel and exclude any individual from the PMI AAP, withdraw his/her Statement of Professional Standing and expel and exclude the individual from PMI membership.
These terms and conditions will be reviewed annually by the PMI AAP Committee (see below)
Governance of the PMI AAPPMI governance as a whole is set out in the main PMI Governance Document. The governance of the PMI AAP has three key constituents:
1. PMI AAP Committee – The PMI AAP Committee has the principal responsibility of overseeing the operation of the PMI AAP on behalf of the PMI Board. The Terms of Reference for this committee are set out in Appendix F of the PMI Governance Document.
2. Operational Responsibility – Operational responsibility for conduct of the PMI AAP in accordance with these regulations rests with PMI’s Head of Membership and IT who will report on the PMI AAP to the PMI AAP Committee. In the absence of the Head of Membership and IT the Head of Professional Standards will make these reports.
3. Disciplinary Regulations – Participants in the PMI AAP are bound by the Disciplinary Regulations in Appendix H of PMI’s Governance Document.
Joining the PMI AAPThe requirements for joining are determined by the status of the applicant as set out below.
Existing Advisers who hold an SPS from another Accredited Body1. Applicants must provide confirmation and, when required, provide documentary evidence that
he/she :a. Is registered as an FCA retail investment adviser (CF30)b. Holds an SPS from another accredited body.c. Has completed and recorded 35 hours CPD, a minimum of which is 21 hours
structured CPD. A retail investment advisers’ firm must certify that the CPD record is accurate and meets the terms and conditions of the PMI AAP.
d. Has adhered to the FCA Statements of Principle and Code of Conduct for Approved Persons. A retail investment advisers’ firm must confirm this on application.
Newly Qualified Advisers who do not hold an SPS1. Applicants must provide confirmation and, when required, provide documentary evidence that
he/she :a. Is registered as an FCA retail investment adviser (CF30)b. Holds an appropriate qualification (including gap-fill where necessary) as set out the
FCA Training and Competence Handbook. This can be found at: http://fsahandbook.info/FSA/html/handbook/TC/App/4/1
c. A retail investment advisers’ firm must certify that the CPD record is accurate and meets the terms and conditions of the PMI AAP
d. Has adhered to the FCA Statements of Principle and Code of Conduct for Approved Persons. A retail investment advisers’ firm must confirm this on application.
Newly Qualified retail investment advisers will be issued with an “Initial” SPS for the first year. At the end of the first year, retail investment advisers will be required to meet the CPD requirements set out above.
Statement of Professional Standing (SPS)An SPS is issued by the AB chosen by the investment adviser. It is evidence that he/she has met the professional standards for retail investment advisers set out by FCA. There are two types of PMI SPS:
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The first confirms that the retail investment adviser has met in full the FCA requirements outlined under the requirements for the RDR above.
Alternatively, an “Initial SPS” can be awarded once only to newly qualified retail investment advisers who have not completed 35 hours of CPD in the 12 months prior to application.
SPS Validity
PMI SPSs are valid for 12 months from the date of issue. PMI issue SPSs at the beginning of each month. As PMI expects CPD activity to be aligned with the SPS (see below) it is possible for a PMI AAP member to align their SPS year with any CPD year that they may be using. The exact method of achieving this will vary depending on the time of application. It can be done on joining the programme or subsequently. An application form is available for existing PMI AAP members to use.
SPS Renewal
PMI AAP members are required to make an annual declaration that he/she has, in the last 12 months, complied with FCA’s Approved Persons regime and completed the Continuing Professional Development required. The SPS is issued once the PMI AAP application process has been completed satisfactorily and confirmed the required standards have been met.
QualificationsAchievement of appropriate qualifications can be completed in two ways:
Passing an examination deemed by the FCA to have appropriate content to be RDR compliant
Undertaking gap-fill to make up any deficiencies against the latest standards in qualifications taken in the past
The FCA has set out the status of appropriate qualifications in relation to gap-fill on the FCA web site at the link above.
Gap-FillUnder the RDR professionalism requirements retail investment advisers need to meet enhanced qualification standards from 31 December 2012 in order to continue acting in that role. If he/she already holds certain qualifications (see link above) they will not need to attain any further qualifications. Instead they will need to fill any knowledge gaps against the FCA’s appropriate examination standards using qualification gap-fill. To assist them to do this, templates are provided which reproduce the FCA’s appropriate examination standards, allowing any gaps that need to be filled to be identified. The FCA templates can be accessed through the following link:http://www.fca.org.uk/your-fca/documents/fsa-gap-fill-template
In addition, other ABs that are also Awarding Organisations have provided gap-fill templates for their own qualifications. PMI will accept gap-fill records certified by other AB’s.
Members of the PMI AAP will need to have their gap-fill verified by PMI as part of the process to confirm that they hold a valid appropriate qualification.
Please note:An adviser must hold a qualification for each specific activity he/she performs; for example if a qualification for packaged products is held but the retail investment adviser also gives advice on securities, he/she will need to hold an appropriate qualification for both of these activities.
Verification of QualificationsAs an AB, PMI is required by FCA to undertake verification of qualifications and any associated gap-fill submitted by a retail investment adviser as part of the PMI AAP. This verification entails:
Confirmation that the retail investment adviser holds a qualification that meets the requirements set out the FCA Training and Competence Handbook (see link above)
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Confirmation in a durable medium that any appropriate gap-fill has been completed. If gap-fill has previously been verified by another AB, separate verification by PMI may not be necessary
If PMI is provided with false information regarding qualifications or gap-fill, the issue will be referred to a Disciplinary Panel under Appendix H to PMI’s Governance Document (the Disciplinary Regulations)
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Continuing Professional Development (CPD)General RequirementsTo meet the requirements for retail investment advisers set by FCA, members of the PMI AAP are required to undertake a minimum of 35 hours of appropriate CPD (including at least 21 hours of structured CPD).
CPD activity is further divided into:
Structured CPD. Examples include:o Courseso Seminars, lectures and conferences o Workshopso Web based seminars or e-learning that require participation of 30 minutes or more
Unstructured CPD. Examples include:o Conducting research relevant to the retail investment advisers’ roleo Reading industry or other relevant materialo Participating in professional coaching or mentoring sessions
All CPD undertaken as part of the PMI AAP should:
Be relevant to the retail investment advisers’ role and any anticipated changes Maintain knowledge by reference to current qualification standards Contribute to the adviser’s professional skill and knowledge Address any gaps identified in the adviser’s technical knowledge Have written learning objectives and a documented learning outcome Be measurable and capable of verification by PMI
All CPD claimed for SPS purposes must relate to your activities as a retail investment adviser. As such, you are urged to consider your claims carefully so that you can, if challenged by PMI or others, demonstrate that the learning contributes to your knowledge, skill or expertise in relation to:
Investment and risk Ethics and regulation Taxation Packaged products
or the application of this expertise within the context of providing retail investment advice. If you are uncertain about whether or not certain CPD activities will be deemed valid by PMI, you are urged to confirm the position before the end of your current CPD year.
CPD and SPS RenewalsPMI requires a minimum of 3 weeks to process your SPS renewal. As a consequence, in the first year you have only 11 months and 1 week in which to complete your 35 hours CPD. In subsequent years, you can start acquiring CPD for the following year once your previous CPD year has finished. To ensure that your CPD is relevant, you must request your SPS renewal within 3 months of the end of your CPD year.
CPD EventsTo complete their CPD, members of the PMI AAP will have the option of participating in the following structured events (all of which will have been verified by PMI):
CPD events provided by PMI CPD events run by Corporate Affiliates verified by PMI through the company Compliance
Officer (or similar) CPD events run by 3rd party providers verified by PMI or another AB CPD events run by 3rd parties, including firms who are not Corporate Affiliates, capable of
verification by PMI to the same standard Passing any relevant examination
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CPD Verification
CPD VerificationThe PMI (as a FCA Accredited Body) is required to verify at least 10% of the SPS applications it receives each year.
The verification process will consist of:• Review of the process of identifying and meeting learning needs of the retail investment
adviser by and in conjunction with his/her firm• Confirmation of participation in or completion of the recorded activities• The CPD content is appropriate to the learning needs identified• The accuracy of records
This will include the verification of the CPD claims submitted. To do this, PMI may ask you to provide full details of the CPD you have undertaken. You may record your CPD privately or on a Learning Management System provided by PMI or by another institute or by your firm. Irrespective of the arrangements you use, a full record of your CPD claim must be available to be supplied to PMI on request. If you rely on records being retained on the Standard Life Online Learning Gateway or similar systems, you will need to ensure that you can access this information and copy it into the CPD record you pass to PMI. Your CPD claim must also be supported by appropriate evidence. Examples of suitable and unsuitable evidence are shown in the PMI AAP CPD Evidence Guidelines.
PMI verifies CPD on a quarterly basis. At the end of each quarter a sample will be selected for verification. Since the verification process can take place at any point up to 6 months after you have submitted your SPS Renewal, you are strongly encouraged to collect appropriate evidence for your CPD activities as they take place during the year. You are required to hold this evidence available for a period of 12 months from the end of your SPS year (although you should be aware that your firm or other professional body may require you to hold this information for longer). As it is not possible to add any additional CPD to a year’s total once the period in question has ended, you are urged to complete more CPD than the minimum so that you have a buffer available should any part of your claim be found wanting during the verification process.
A maximum of 5 hours unsubstantiated Structured CPD will be allowed in any one SPS year to allow for such contingencies as the subsequent failure of external CPD providers.
As part of the annual declaration, firms will be required to certify that the recorded CPD is accurate and meets the terms and conditions of the PMI AAP.
CPD ContentCPD content provided by organisations that are not ABs can be delivered broadly by two types of organisations:
• Corporate Affiliates – where a firm wishes to provide verified CPD content, PMI will request they complete an application and pay the relevant fee. PMI will then arrange a verification visit to assess the following meet appropriate standards:
o The processes employed to identify the learning needs of investment retail adviserso The nature and scope of CPD delivery capabilityo Recording tools and procedures, including participation and attendance where
relevanto CPD activity and contento Effectiveness and robustness of the company’s Training and Competence
arrangements• Other 3rd Parties – CPD content provided and delivered by 3rd parties that are not Corporate
Affiliates will need verification either by PMI or another AB. The scope of the verification process followed by PMI will be more focussed than that used for Corporate Affiliates a. It will cover:
o The content and delivery of specific programmes in relation to RDR requirementso The recording of attendance or participation at the events
Management ReportingReports and metrics on the PMI AAP will be provided to satisfy two broad requirements:
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Management of the PMI AAP and associated reporting to the PMI AAP Committee and PMI’s Board
Reporting to FCA as required by their AB programme. This consists of monthly status reports and a report by an independent auditor that PMI has met the standards required of an AB over the last 12 months and is capable of achieving those standards over the next 12 months. Further reports to FCA of an ad hoc nature to cover specific events or issues will be provided as mutually agreed.
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