Dear Wizard Learner

What will new qualification standards mean for existing and new advisers?
Following the FSA’s consultation paper CP09/31: Delivering the RDR: Professionalism; Corporate Pensions and Applicability of RDR proposals to pure protection advice published last month and subsequent points from the regulator, we thought we would run through some key points in respect of qualification standards to help you plan the impact of these proposals on your firm. As time moves on, these proposals become clearer and more urgent to address!

Existing advisers
The regulator proposes a change to the definition of an “existing adviser” to a person deemed competent on 30 June 2009 as opposed to the end of 2010.

It stated that 'existing' advisers will need to achieve the Level 4 requirements by the end of 2012 deadline but those falling outside the definition will be given longer.

Anyone with current QCF level 4 qualifications will benefit from the FSA’s previously published “no regrets policy”. All current QCF level 4 qualifications count.

CPD will be required to top up the gap between the current QCF Level 4 qualifications and the new QCF level 4 standards. However, the regulator insists that it will have to be structured i.e. not just reading a magazine for example. The FSA will allow past relevant CPD to apply in meeting any gaps. Structured CPD should demonstrate the learning outcome covered, assessment methods, results and who has carried out that assessment.

New advisers
The FSA recently confirmed that advisers who aren’t deemed competent until after July 1, 2009 will face a deadline to achieve the required standards that is later than the 2012 cut-off point.

The regulator will consult during 2010 on what the “back-stop” deadline(s) should be for these advisers.

Alternative assessments
Interestingly, the FSA confirmed in its December paper, that exam and oral assessments are too restrictive. Other assessment methods will be allowed but the regulator is insistent that these should meet the requirements of the relevant qualifications regulator at the appropriate level in terms of content, standards achieved and rigorousness of the assessment process.

It follows that acceptable assessment methods could be on similar lines to a National Vocational Qualification or apprenticeship. These often include practical assessment methods and coursework to achieve the required standards.

We welcome this level of flexibility being put forward by the regulator. However, a series of work based assessments compared to exams, may not save many advisers either cost or time taking into account the processes and the expertise of the assessors that would be required. Therefore, individuals may wish to contemplate this route if they really feel it would suit them more than a written or oral exam but if they feel it will be an “easy route”, they are likely to be in for a shock!

How Wizard Learning can help you
Wizard Learning provides structured CPD in helping to meet core standards of competence and qualifications at all levels. Our packages are continuously updated and improved upon to meet the needs of those working in the industry.

We will keep you updated over the coming months with developments to our services but it goes without saying, that we will be ready for the new standards being imposed via the RDR.

These pages provide details of our training:
Online training
Blended training (online and face-to-face)
Structured CPD (TT&C)

Kind regards

Mike

Wizard Learning
www.wizardlearning.com

Winner of the Best Online Educational Initiative at the last Online Finance Awards

Wizard Learning is run by Mike Goldsmith a Chartered Financial Planner in association with a team of highly qualified, industry experienced individuals in order to assist finance professionals pass industry exams and help meet their CPD requirements.