The Norwegian Savings Banks Association and fair and clear relations with customers. Finance Norway is the umbrella organization representing the finance sector in Norway, including the Norwegian Savings Banks Association. The Norwegian Savings Banks Association is promoting fair and clear relations with customers through a number of tools, such as an authorization scheme for financial advisers, a Code of Conduct for Financial Advisers, the appointment of two Committees within Finance Norway to improve standard contracts, and the issuing of Guidelines on CSR.
- Financial advisors – authorization scheme and Code of Conduct
The authorization scheme for financial advisers was established by Finance Norway, the Norwegian Mutual Fund Association and the Finance Sector Union in 2009. By now 6500 financial advisors have gained their authorization and approximately 1500 more are preparing for the tests.
As part of this industry-wide drive to raise the skills of financial advisers, an online directory was launched in April 2011 – making it possible for consumers to check whether their financial adviser is authorized or not.
In 2003, on the basis of self-regulation, the financial industry established a code of conduct for financial advisors (Advisory Code of Conduct). In 2012 the code was revised, and the scope was broadened in order to make it valid for products and services other than financial advice. At the same time the financial industry launched a common platform for the teaching of ethics according to which employees should:
- understand the industry's role in society
- be able to identify and analyze ethical dilemmas in the financial industry and in their daily work
- be able to apply the conceptual framework of ethics and to make informed decisions
- be able to apply the industry’s code of conduct (Advisory Code of Conduct)
The Code of Conduct: Good Advisory Practice
1. Prepare properly for all scheduled customer contacts
2. Clarification of roles
Introduce yourself, your company and the basis of the contact. Establish the customer's expectations. Avoid giving a false impression that your advice is independent or impartial.
3. Identification of needs
Obtain the necessary information about the customer and the customer’s needs.
Insurance advisers: Cover required, risks, life situation and plans
Financial advisers: Current and expected future financial position, investment goals, risk profile, knowledge and experience of relevant investment areas
4. Duty to refer
Refer the customer to an expert in situations where you are uncertain. Alternatively, ask an expert yourself.
5. Knowledge gap
Present solutions appropriate to the needs identified. The information provided must be accurate, complete and not misleading. Make sure the customer has understood the proposed solution.
Insurance advisers: Provide information on safety precautions and preventive measures.
Financial advisers: Provide detailed information on potential returns, risks, liquidity/lock-in periods and costs.
6. Conflicts of interest
Make sure you put the customer's interests before those of the company and your own. Be open about any factors that may have influenced your proposal.
7. Duty to warn
Advise against solutions that are not in the customer's interests and/or within the customer's means.
8. Cooling off
Give the customer time to consider the proposed solution before signing an agreement.
Financial advisers: This applies particularly in cases where the customer did not initiate the contact.
9. Follow-up responsibilities
Agree on what form follow-up is to take. Make sure the agreement complies with the company's rules and procedures.
Insurance advisers: Make the customer aware of the duty to report changes in circumstances.
10. Documentation
Ensure adequate documentation of the contact and the agreements entered into.
Finance Norway has appointed two committees that are responsible for making, changing and amending standard contracts used by the banks towards their customers. Both committees have recently had a fruitful dialogue with the Norwegian Consumer Ombudsman concerning the standard contracts with the purpose of achieving good, legal and balanced terms. The Norwegian Consumer Ombudsman is an independent administrative body with authority to ban unlawful contract terms and conditions in standard contracts when deemed necessary in the interests of consumers. Pursuant to section 24 of the Marketing Control Act, the Competition Act is not applicable to the use of contract terms and conditions that have been negotiated in cooperation with the Consumer Ombudsman.
Finance Norway has published a “cookbook on CSR”, as the industry’s common guideline for CSR.
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