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The Financial Skills Partnership (FSP) remains hopeful the FSA will change its mind over what it calls a “cliff-edge” approach to RDR qualifications.
Financial advisers have until 31 December 2012 to gain a relevant QCF Level 4 qualification or they can no longer see clients.
But FSP chief executive Liz Field said her organisation would lobby for a tapered solution under which advisers who miss the deadline can continue under supervision.
“RDR discussions are not dead by any means,” she said. “I think we will find that the closer we get to the deadline, the more this issue will heat up.”
The FSP, formerly the Financial Services Skills Council, was responsible for setting the standards all Level 4 RDR-ready qualifications must meet before they can be approved.
Allowing unqualified advisers to work under the guidance of a superviser while they continue with their studies would be a “common sense” approach, Field said at the launch of the FSP’s Partnership Programme, which offers guidance to firms looking to attract young talent to the industry.
“We have been very vocal on this. A one-off deadline is not helpful to IFAs or consumers.”
Giving evidence at a Treasury Select Committee (TSC) hearing on the RDR earlier this month, FSA conduct director Sheila Nicoll said the FSA has given advisers enough time to meet the requirements.
“We have been conscious of the need to give advisers time in the build-up [to RDR] to gain the necessary qualifications,” she said.
“They have known for four years of the requirements to qualify to the next level up. We feel we have been reasonable in giving plenty of time for preparation in advance of the deadline.”
There have been previous suggestions the FSA would be willing to relax its rules as the 2012 deadline approached.
Speaking earlier in 2011, AIFA director Stephen Gay said: “My sense is, whilst the FSA won’t say it explicitly, if we were to get close to that deadline and it looked like a car crash was about to happen, I think they would take a sensible view.
“What we are saying is: let’s be pragmatic. It’s not going to undermine the principles of RDR for those people who have shown commitment to get to the level to be given a little leeway if push comes to shove at the end of 2012.”
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Common sense is wait to harmonise with Europeean directives.
Government departments, Local authorities, large and small businesses alike are currently in the process of reducing cost while maintaining current levels of service and economic activity. Only the FSA alone feels it appropriate to add £1.7 billion worth of cost to an industry on what is no more than an experiment that has the capacity to threaten viability.
Posted by: Richard
4 years is plenty of notice
Advisers have known for over 4 years that higher qualifications were required. I do not expect any 'leeway' at the 11th hour. Do what is necessary now to achieve Level 4. I cannot see the FSA relenting.
Posted by: Roger
Out of control
They are out of control. No gov't checks and balances on Hector. He is just too powerful. Our next PM.
Posted by: Festina
Out of control
They are out of control. No gov't checks and balances on Hector. He is just too powerful. Our next PM.
Posted by: Festina
Level 4
We must assume that advisers going to such lengths to complain and lobby, are experienced advisers with many years under their respective belts. Have they even looked at the exam in question? If they had they would realise there is nothing to worry about as an experienced IFA will know 60% of the content, with just some reading about the irrelevant Corporate Banking section. It strikes me that if just part of the effort spent complaining had been directed towards working for the exam, everyone would have passed by now and moved on to something worth debating. To those in fear of level 4... seriously, 2 months MAXIMUM over the year is all that is needed to pass.
Posted by: Bemused
Gap-fill the problem
We have known since 2006 about level 4, but only since last September that level 4 was not good enough - gaps need filling. Even now it has not been finalised what is satisfactory for gap-fill. In these circumstances more time should be allowed. The other part of RDR, the abolition of wholesale supplies - it is incredible that this is still on the table. No question, it will mean the end of independent advice for UK consumers.
Posted by: ken Durkin
Level 4
Unfortunately, not all advisors are IFAS. Many are stockbrokers who spend their day buying and selling shares on the stock markets. Some specialize in different markets other than the UK. They know very little about pensions, insurances, tax wrappers, offshore bonds, insurance bonds, ucits, ucis. Now they have to study this material for no apparent reason as it isn't something they advise on. Many of these people have been in the business for 30/40 years with no complaints and have very happy clients.
Posted by: Festina
reply Festina
Unfortunately the FSA do not see any of this, all the reports from Finacial companies all reporting the same issues post RDR. This is Sants little baby project and he wants to see it to the end even if it breaks all the businesses offering sound financial advice to those who can and cannot afford to pay for advice. When it all goes wrong will sants be held liable...no dont be silly. More good businesses going to the wall.
Posted by: They not listening...
Level 4
Festina... That may be the case but futures, options, credit default swaps, the currency mechanism and Basel agreement are all news to most IFA's, guess you have to suck it up and learn something new.... even if the majority is irrelevent to most of us, whichever field we specialise in?
Posted by: Bemused
re Ken Durkin
The comment made by Ken hits the nail on the head. We were led to believe Level 4 was the new standard and yet, having attained this years ago, my CII gap-fill amounted to some 33 "outcomes" short of the target 132 - granted now reduced to 109. The righteous souls who claim to be fully RDR ready have achieved this status by miraculous means as, bar the R series CII exams, the FSA matrix of RDR compliant qualifications shows that every other previous standard would require some form of gap-fill. A shortfall of 33 did not strike me as a mere gap - more a chasm! I'll be interested to see if the attendance at a few gap-fill seminars is ultimately deemed acceptable by the FSA next year but, for me, it's another set of 4 R exams to be on the safe side. Shame we were only advised of this last summer and not four years ago as Sants stated to the TSC earlier this month. More spin, smugness and naivety by the top level regulators - that's what sticks in the craw, not the RDR itself!
Posted by: DMG
RDR Panic
The last 3 years have been probably the worst of my life. My daughter left by her husband with a 12 month old baby, my husband having an accident that required 2 serious ops in 6 months, the sudden death of my mother 15 months ago then recently when I thought the dust was settling my husband has major by pass surgery. I have taken and failed two exams 3 and 4 times respectively in this 3 year period al though I passed CeFA and CeMap exams quickly and achieved a Dip in Management Studies within 2 years. I am panic stricken which is affecting my ability to achieve RDR. I truly hope that the deadline is relaxed
Posted by: Lynda Powers
It takes longer than you think
I am currently studying R04 (pensions). Just reading the book with NO interruptions in the suggested 45 minute segments during what would normally be a working day is probably going to take a working week. Let's say I then spend half a gain as much revising and then a day out of the office for the exam, that's nearly 2 weeks for 10 points against the 80 for diploma. That then works out at 16 weeks to get the 80 points asssuming first time passes and all that while keeping existing clients happy and paying the bills....
Posted by: Nameless
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RDR deadline
Some comments from the post "paragmatic" "reasonable" "FSA". I don't think there is any connection between the three. According to Hector they need £50M to morph into the new body even though Hector says it will be the same staff working from the same offices doing pretty much the same job.
Posted by: nick pilkington