Adviser cost of SPS and CPD to hit £595

The cost to advisers of obtaining a mandatory ‘statement of professional standing’ (SPS) certificate and completing their qualification gap-fill requirements by 1 January 2013 could hit £595 each, the FSA estimates.

The cost relates to loss of earnings and leisure time for CPD and to the amount it could cost advisers to obtain an SPS from an accredited body.

Under proposals set out in yesterday's RDR consultation paper, CP10/14, all advisers will incur the cost of mandatory SPS accreditation, which the FSA expects will range from £60 to £175 per adviser.

Current members of a professional body would likely pay less, the FSA says, though it adds the actual price of verifying professional standards will depend on the level of competition which develops as various bodies apply for accreditation powers.

In addition, the FSA estimates the cost of 'qualification gap-fill', the new term for the CPD needed before 1 Jan 2013 to boost current qualifactions up to QCF level 4, will hit around £420 per adviser.

Added together, accreditation and learning gap-fill could cost advisers who want to continue working post-2012 up to an extra £595.

This cost includes 3.2 hours of lost earnings as the FSA expects advisers will spend around a fifth of their study time during working hours on gap-fill, according to an NMG report published alongside the RDR paper.

It also factors in lost leisure time, as the FSA expects 12.8 hours of learning will have to be undertaken "in advisers' own time".

According to FSA figures, 37,000 advisers who already hold, or expect to complete by the end of 2012, a qualification on the FSA's approved list must undertake ‘qualification gap-fill'.

This includes 23,000 advisers who already hold one of the qualifications listed as RDR-compliant and around 14,000 advisers who are en route to an appropriate qualification.

On average, each adviser will need to spend 16 hours on "structured learning" to bridge the gap between the content of their current qualification and the reformed exam standards, the FSA says.

It estimates the total cost to the adviser commmunity of qualification gap-fill in terms of lost earnings and leisure time will be £15.5m.