Bank advisers embrace 'no regrets' promise in RDR push

Tied advisers are “just getting on” with meeting new minimum qualification proposals in the RDR by attaining QCF Level 4 under the FSA’s ‘no regrets’ promise.

RDR-ready qualifications will not exist until the middle of next year as the Financial Services Skills Council (FSSC) consults on exam standards.

But the FSA has urged advisers to "get on now" and reach QCF Level 4 "with no regrets", pledging any gaps relative to new knowledge requirements can be dealt with via continuing professional development (CPD).

The British Bankers' Association (BBA) says most of the UK's near-13,000 bank advisers who are affected by the RDR - and who are subject to the same minimum qualification benchmark as IFAs - have already begun their studies.

"The main thrust of feedback I'm getting is that banks are just getting on with it under the FSA's ‘no regrets' policy," Retail policy director Peter Tyler says. "The banks are supporting them through their exams and the advisers will then use CPD."

A number of independent advisers, many of whom remain qualified to QCF Level 3 only, remain either undecided about what to do or confused about what their options are.

According to a study by financial services consultants NMG in July, at least 20% of principals of IFA businesses either do not know when their company will be fully RDR-compliant or do not think they will be able to meet the FSA's 2012 deadline.

However, IFA portal Unbiased says the number of IFAs reaching the Level 4 benchmark is steadily rising.

It says, as of 5 October, the IFAs listed on its database held 14,740 QCF Level 4 qualifications between them. This was up from the 14,342 recorded on 1 June.

Meanwhile, the Chartered Insurance Institute (CII) reports a record take-up of its exams this year, including for its Certificate in Financial Planning, which the FSSC has already identified as one of three Level 4 exams that meets the regulator's "no regrets" agenda.

Steve Aspinall, CII head of corporate development, financial services, says there have been 21,000 exam sittings in 2009 alone, although he adds its papers also cater for tied and multi-tied practitioners.