FSA: New pension transfer exam standards can be met with CPD

Practicing financial advisers will not have to sit further examinations if the FSA increases the qualification standards for pension transfers.

In its latest quarterly consultation paper (QCP), the regulator confirmed it is set to review the standards for those who undertake pension transfer activity as well as those who manage investments.

But it said it believes any gaps in advisers' knowledge as a result of changes it makes would not need to be met through a qualifications gap-fill exercise, but through regular continuing professional development (CPD).

The FSA said it did not believe the risks within pension transfers had changed since the qualification standards were last reviewed in 2007.

But it said updates focusing on changes to the tax regime in annual allowances and drawdown, as well as the government's pensions reform involving auto-enrolment, may need to be made.

The regulator also proposes increasing the pension transfer module of qualifications which permit individuals to ‘undertake pension transfer activity' from QCF Level 3 to Level 4.

Meanwhile, the FSA also confirmed plans to increase the qualification standards for those who manage investments - including fund managers and discretionaries - to QCF Level 4, in line with RDR.

Financial advisers also manage investments but, as they are captured by RDR, the proposals do not affect them, it said.