CII: Certificates alone can’t raise adviser professionalism

The ‘emerging’ adviser profession is on a long journey to be as highly recognised as doctors or accountants and a whole package of measures will be needed to change consumer perceptions, according to CII director of financial services Steve Jenkins.

Speaking to Professional Adviser at the launch of our Investing in the Profession Initiative, Jenkins said advisers are still suffering as consumers tend to lump them together with other financial institutions.

“For consumers it is all something to do with money. There is no distinction between insurance brokers, financial advisers, banks, networks or regional IFAs.
“There is still a legacy associated with mis-selling, Equitable Life and pension opt-outs and more recently the economic troubles.”

Jenkins said it will be important to invest in the adviser profession as a whole and each part should then benefit as a result. This will include supporting a wide package of measures and no single initiative, such as the new Statement of Professional Standing certificates, will be enough to change consumer perceptions.

He said: “As financial advisers develop long term relationships and get a chance to articulate their expertise, ongoing service and outline the value of advice over time then gradually the view of the profession will improve.

“Then consumers will naturally look for the elements they expect from other professions. These include: high levels of knowledge or expertise, continued investment in their own education and acting in the customer interest and in an ethical and appropriate way.

“The Statement of Professional Standing initiative will be useful if we get it right but no one thing in isolation will do the trick. Medicine and law have been professions for over 100 years but we are on a journey and are building the components of our profession bit by bit.”

Jenkins reassured advisers who have many years experience that no-one is questioning their credentials. However, he warned consumers, particularly those not already engaged with financial services, are becoming more demanding and want formal evidence of expertise.

He also highlighted an increased interest from consumers in chartered status and said a growing number of firms and individuals are striving to reach the higher level in order to differentiate themselves from their peers.

However, although there have been reports the FSA may raise the benchmark level for advisers from QCF Level 4 in 2012 to as high as Level 6 (equivalent to chartered status) in the near future, Jenkins says the CII has been given no indication this will be the case.

“We are seeing a large number of firms and individuals voluntarily going beyond the new RDR benchmark. Around 9,000 are studying beyond Level 4 and there has been a significant increase of 25% in the number of chartered individuals over the past year to nearly 2,500 chartered financial planners in the UK,” Jenkins said.

“We are not advocating chartered status as the new benchmark. But we do know from our research with YouGov last year, which tested consumer awareness, that chartered status stands out a mile in terms of resonance with professionalism.

“There is a real enthusiasm for firms to move towards that and it is having a direct bearing on the number of professional references as well as helping attract new school leavers and graduates.

“It will never be the minimum and always the gold standard but there is a real critical mass. There is also more interest from the consumer press in accessing views from chartered advisers.”

For the full video interview click here: