IFA Hub Extranet
Wizard Learning - RDR qualifications & CPD requirements
The FSA has released its latest consultation paper concerning the Retail Distribution Review and from a qualifications perspective, there are few surprises. Much of the detail is yet to be completed but we are pleased to provide you with a summary of the main points concerning advisory qualification standards.
The good news is that current industry qualifications will definitely be taken into account under the regulator’s “no regrets” policy so, those of you currently undertaking diploma level qualifications are definitely not wasting your time. Any gaps between the current standards and the future qualifications can be met by a structured approach with CPD.
For individuals there has never been a more important time to get qualified. With fewer opportunities available, this is an employer’s market and they are likely to only choose those meeting the highest standards.
For organisations, the only way to get business in this economic climate is to be the best!That means highly qualified, up to date people who can exceed customer expectations. Get your people qualified and be ahead of others.
Wizard Learning is proud to be able to provide both examination based revision products as well ascompetency packages to meet advisers’ ongoing assessment and CPD requirements.
RDR SUMMARY - QUALIFICATION ASPECTS
The FSA’s RDR Consultation Paper was released yesterday (25th June 2009).
As expected, the regulator stated that the Financial Services Skills Council will consult on a new benchmark qualification for all adviser entrants, whether providing an independent or restricted advice service. The consultation will be complete by 2010.
Existing advisers can take action on qualifications now with the aim of reaching the QCF Level 4 or equivalent standard by the end of 2012 deadline.
The options include tough oral assessments as an alternative to the usual written format exams. All forms of assessment will be based on the same content for those aiming to demonstrate they are at Level 4 or above. This oral assessment option route will not be available after the end of 2012. Grandfathering will also not be allowed.
The FSSC will consult on the new benchmark qualification for a period of three months from mid-August 2009.
It is anticipated that there will be core subjects for all investment advisers including regulation and ethics, personal taxation, investment principles and risk. Advisers will then be able to select an appropriate examination from the FSSC's newly compiled list.
Awarding bodies will be able to design qualification towards particular market sectors. Following industry input, application of acquired knowledge will be pivotal to the new qualification.
Whether some advisory activities will require knowledge levels above Level 4 will also be taken into account.
The FSA has re-iterated its “no regrets” stance and advisers will be able to use existing Level 4 qualifications against the new benchmark standards. Gaps between current qualifications and the new assessment levels, will be able to be filled by planning and implementing structured CPD. Any relevant CPD must be completed by the end of 2012.
The Professional Standards Board will consult on a consistent standard for CPD after the implementation of the RDR. This should be based on good industry practice and could include a professional body's CPD scheme, in-house arrangements operated by advisory firms or appropriate third party offerings. The regulator believes that CPD standards should be flexible enough to tie in with individual needs and the requirements of their roles. Styles of learning should be relevant to an investment adviser's role.
The maintenance of an adviser’s competence to sufficiently fulfill their role should include measurable objectives, targets and outcomes including a minimum of 35 hours of relevant CPD activity in each 12 month period.
The balance of this CPD would be expected to be 60-70% structured and 30-40% unstructured.
Structured CPD could include attending seminars, lectures or completing e-learning tutorials while unstructured would include research and reading industry material.
Investment advisers should complete forward looking CPD plans for each year and maintain some form of CDP log which they can take with them if they move firms.
A draft new Code of Ethics for investment advisers will be formally consulted on by the PSB or the FSA.
Article last updated: Jun 29, 2009
Derek Bradley, CEO
Sarah Paul, Marketing Director
James Bradley, Head of e-Relationships
Comments