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Fresh concerns over advisers’ minimum qualifications surfaced this week after the trade body for IFAs launched its own exam option at a level above that proposed in the RDR.
Stakeholders say the launch by AIFA of its QCF Level 5 Diploma in Investment Planning proves the FSA will not stick with its current Level 4 requirement “for long”.
The FSA is expected to confirm later this year all existing and new advisers will need to be qualified to at least QCF Level 4 in an appropriate exam by the end of 2012. The current requirement is the equivalent of Level 3.
AIFA, the consumer panel (FSCP) and the Institute of Financial Planning (IFP) agree the regulator could raise the minimum standard, but say this will likely come after 2013 and could apply to new market entrants only.
But advisers fear any future increase will also apply to existing practitioners, as it has done with the move to Level 4.
Peter Taylor, an IFA with Tyneside-based Taylor Hartley Partnership, says: “The FSA will apply any future increase to existing advisers, just as it has done previously.
“It is ridiculous. Essentially I am going to be forced out of business unless I do a degree.”
AIFA’s Diploma was launched as an alternative to written exams and enables, it says, advisers to “apply and demonstrate” their on-the-job knowledge through case studies.
Director general Chris Cummings says by setting the exam at Level 5 it had “future proofed” against any additional qualification requirements “that may emerge”.
“There seemed little point in developing a qualification that only got people half way there,” he says.
The Institute of Financial Planning (IFP) says it fully expects the FSA to raise the
minimum qualification requirement, but not until after 2013.
“It is interesting AIFA came in at Level 5,” CEO Nick Cann says. “The current requirement will not stay at Level 4 forever. When we started talking there was a general acceptance that Level 6 was right for professional financial planners.”
Sheriar Bradbury adds it is inevitable the minimum level will be raised.
“I was coming round to the idea of Level 4 being appropriate but, ultimately, if this industry is going to command respect, advisers need to be educated to chartered status or equivalent.”
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| Comment | Fears over minimum qualifications as AIFA enters at QCF Level 5 |
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Good
For all of us taking our profession seriously this is good news. Roll on the removal of commission and level 6 requirement!!
Posted by: Guarin
Over the top
I totally agree with the last comment: 'Whos' side are you on AIFA? I foolishly thought that AIFA may help IFAs. The over 40 qualified and experienced brigade don't want any more exams. CAN YOU HERE ME NO MORE EXAMS FOR OLD TIMERS IT'S ILLEGAL!!!! I AM CURRENTLY A MEMBER OF AFIA BUT WON'T BE FOR MUCH LONGER
Posted by: GRAHAM COOPER
The Luddites Ride Again
I’m probably older than most of the whingers on this site. If any of you have been in Financial Services for more than a year it was patently obvious to all save those asleep or irredeemably stupid that qualifications were going to figure hugely. From as far back as Gower this was evident. This year sees my 25th year in this business and for all of it I have continued to study and right up until recently take exams. I enjoy it about as much as paying FSCS levies, but I guess both are required and come with the job. If it means working on a Saturday or sometimes a Sunday – well so be it. If I didn’t want to I could always have changed occupation. I am nothing special and I know plenty in and around my age group that have done likewise and even more and better. So we really are seeing now where the land lies. Evidently there are those whose only ambition is to be considered second-rate dimwits, who are not even capable of providing a decent case study. It rather does give the FSA just cause. If you can’t provide this what on earth are you doing as IFAs? Furthermore you have also demonstrated that whatever AIFA tries to do you will never be satisfied. If you examine all the blogs, letters and comments regarding education what clearly comes out is the (justifiable) antipathy to the CII. So AIFA ties to help and what do you do? Continue to whinge. Perhaps we really do need a clear out, perhaps the FSA is justified in holding IFAs in general in low esteem. I know I’m not alone when I say that I rather resent being lumped with these sort of advisers. Are you REALLY saying that you are so lacking in backbone and effort, that you are so lazy and intellectually impoverished that you absolutely refuse to attempt to raise your game? Shame on you all.
Posted by: Harry Katz
aifa enters at qcf level 5
THEIR IS NOTHING WRONG WITH RAISING STANDARDS HOWEVER NOT EVERYBODY IS AN EINSTEIN, THE IDEA OF SELF ASSESMENTS VIA ACADAMY IS EXCELLENT FOR THE ADVISERS WHO WANT TO LOOK AFTER THEIR CUSTOMERS AND CONCENTRATE ON TREATING COSTOMERS FAIRLY AND GOOD OLD FASHIONED CUSTOMER SERVICE, WITH REGARD TO WORKING WEEKENDS DOING STUDY HAVE YOU NOT HEARD OF GETTING A LIFE PEOPLE DO HAVE HOBBIES AND FAMILY THEY ARE NOT JUST ROBOTS KEVIN FLETCHER I.F.A.
Posted by: KEVIN Fletcher
very worried
I have 25 years experience in this industry, and right now I'm worried sick over the Swansea City promotion slip up. Has anyone any tips. ?
Posted by: Don't be ridicolous , I'm the only one
AIFA level 5
Of course we're entitled to a life Kevin. But if you want to be paid as a professional then you must work as a professional and prove that you know your stuff - which you may well do ! In which case the exams should be easy. Let's be honest, there are still an awful lot of people trading as IFAs who expect £200per hour or £100k pa but want to work 10 hours a week and have no real capacity or ability other than they once had a window cleaning round and sold a lot of endowment policies.
Posted by: Bill Wells
Qualifications
Whats happened to Chris Cummings, is he being paid by the FSA, he is supposed to be fighting for the IFA community and it looks he has done a turn around on his initial thoughts regarding the qualifications. It is about time the members of AIFA boot him out now as he is no longer supporting us, what an hipocrite. I for one will be cancelling my fees to AIFA as they are certainly not working for us no more.
Posted by: John M IFA
Exams
There is an automatic assumption that because someone is academic and good at taking exams, that they will automatically be a good Financial Adviser. My experience of the industry over the last 34 years shows that this is not necessarily the case. A lot of academics lack understanding and empathy with their clients. Those who are able to easily remember study material, and are able to recall it during an examination, will have no problem, but those who are not able to will have problems. That doesn't make them unprofessional or incapable of being a good IFA. A good IFA must know his industry, but more importantly must wish to do the best for the client and put the client first. There are a lot of good research tools available now that allow the experienced adviser to do a good job for the clients. So, please, all you good academics, stop being so damned pompus, and consider your colleagues in the industry. Oh, by the way, I only need one more exam to qualify, so it shouldn't be a problem for me.
Posted by: Gerry Rickman
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Palms being greased?
Hello there AIFA and Chris Cummings, are you there???? Whos' side are you on AIFA? I foolishly thought that AIFA may help IFAs. The over 40 qualified and experienced brigade don't want any more exams. CAN YOU HERE ME NO MORE EXAMS FOR OLD TIMERS IT'S ILLEGAL!!!!
Posted by: Incompetent Regulators Awards Team