CII tips for getting RDR-qualified

The CII's Rebecca Prestage discusses the examination options available to advisers.

From the end of 2012 existing financial planners will be required to hold a QCF-approved Level 4 Diploma qualification.

One of the major concerns for advisers will be juggling their workload as well as preparatory work for these exams; but for many advisers a Level 4 qualification will simply involve reinforcing their existing knowledge and skills, so they may find it is less daunting than they first thought.

The new CII Diploma in Regulated Financial Planning will be examined through a combination of multiple choice exams available all year (for units R01 to R05), and a written exam (unit R06) available six times a year. As five of the six units are available online and can therefore be taken whenever required, advisers will be able to sit exams more frequently than the existing CII Diploma. This may reduce the time it takes to become qualified.

Top-ups

Existing advisers with ‘legacy’ qualifications, including the CII’s Diploma in Financial Planning, the Advanced Diploma in Financial Planning, or the Advanced Financial Planning Certificate (AFPC), may have to top-up their qualification with continuous professional development (CPD), in order to bridge any gap between the qualification held and the new qualification standards. The level of CPD required will depend on which exam units have been selected by the adviser en route to their existing qualification.

For experienced advisers there is also a non-exam route to achieving a Level 4 qualification. This should not be seen as an easy option, as advisers will still need to demonstrate that they fully meet the new exam standards by attending a rigorous one-to-one assessment day. This is likely to be a more expensive option, as it will involve bringing in an independent assessor.

Advisers currently qualified at Certificate, or en route to completing the Diploma, have the option of completing the existing Diploma in Financial Planning, or the new Diploma in Regulated Financial Planning.

Maximum flexibility

For maximum flexibility candidates opting for the existing Diploma in Financial Planning will also have access to the new Diploma in Regulated Financial Planning exam units. They can sit these instead of, or in conjunction with, the J0 units. This will expand the choice available to 20 exam units in total across the qualification framework at Diploma, Advanced Diploma and Certificate level.

Non-qualified advisers will complete the new Diploma in Regulated Financial Planning from scratch, meeting the standards of the FSA and FSSC.

There are a number of overlapping units between the new R0 and existing Diploma units, so advisers should investigate which of the new units they may already have credits for. The CII’s diagnostic tool will explain how advisers should proceed towards the RDR.

A number of financial planners coming to the end of their careers may decide not to go through the new regulatory process and retire from the sector. As the sector adapts to a new level of professionalism, we feel the higher benchmark will help to attract new entrants into financial planning, which should hopefully balance any changes.

Financial planners will also have to consider how they will stand out in the marketplace once a higher minimum benchmark has been introduced and we anticipate more advisers will look at gaining Chartered status. As a consequence, financial planning will acquire a level of recognition among the general public as that already enjoyed by professions such as accountancy and law.

If you are looking for guidance on becoming RDR-compliant, please see www.cii.co.uk/RDR for suggested study routes.

Rebecca Prestage is manager, market developments (Financial Services) at The Chartered Insurance Institute (CII)