Dear Wizard Learner

Diploma - Which way now?
The Financial Services Authority states that all existing advisers deemed competent on 30 June 2009, will need to achieve an appropriate QCF level 4 qualification by the end of 2012. Individuals receiving competent adviser status after 30 June 2009 and new entrants to the industry will be given longer than this. “Backstop” deadline dates for these latter categories will be announced later in the year.

The regulator has stated that it is open to different approaches to gaining a level 4 qualification. Time will tell how these alternative methods develop but for now, we concentrate on achieving the desired standards mainly by examination.

The Financial Services Skills Council in tandem with the industry has proposed core subjects within the new qualification requirements namely:

• Regulation and ethics
• Personal taxation
• Investment principles and risk

It is also finalising the high level standards for what it terms as “advice activity” and “application” standards. If providing advice on packaged products, the advice activity standards are:

• Pensions and retirement planning and
• Protection

If providing advice primarily on securities or derivatives, then standards are being developed for these areas in addition to the above.

Examinations
So if you are currently a competent adviser, what approach should you take with existing diploma exams, especially if you are in the middle of your studies?

If you have already achieved a level 4 diploma qualification or above, then any gaps between the standards you have achieved and the new standards listed above, can be filled with appropriate and structured CPD (see below).

Similar principles apply to those who are part qualified. For example, someone who had already passed the CII’s J01 personal taxation exam, would be able to meet the RDR core standards for the taxation element by undertaking structured CPD by no later than end of 2012 to meet the new standards. However, they would then need to achieve examination/assessment passes in the other areas listed above at level 4 depending on their specialist field (packaged products / securities / derivatives / securities and derivatives).

Under its “no regrets policy”, the regulator is actively encouraging people to continue with their studies taking the existing available qualifications until the new standards are finalised and the relevant providers present their new offerings.

The core standards for Personal taxation and investment principles and risk are not far away from existing syllabi although some gaps do exist, especially under the new taxation standards where knowledge of trusts is required. If not already achieved, it certainly makes sense to complete examinations that include these elements.

Regulation covers many of the areas already tested in certificate level qualifications such as the CII’s CF1 or the ifs School of Finance’s CeFA1/CeMAP1 exams. However, the standards of assessment being one notch higher mean that current qualification providers have yet to announce how they will deliver and assess the subject. A similar issue exists with the subject of protection although this is dealt with more favourably under the structure of the ifs School of Finance’s Diploma.

Anyone who holds exam passes at level 4 in pensions subjects is very likely to be at or near the new RDR standards so again, it makes sense to achieve these if not already held.

Undertaking CPD
There has long been a culture of CPD within the retail financial services environment. For advisers and key staff though, it has never been more important. However, the old principles of correctly approaching CPD are just as relevant to the RDR standards as for anything else.

The starting point should always be to ask: “What skills and knowledge do I need to be and remain competent for my role? Undertaking a “gap analysis” of where you are now and what you need to learn to become competent should then take place. Once this has been done, work out what learning is appropriate to bring you up to the required standards. It makes sense, to “rubber stamp” this learning by some form of assessment that you can provide to your employer or the regulator at a later date to demonstrate the level of competence you have attained.

Demonstrating the level you have achieved can often of course be proven by examination but it does not have to be. Assessment can be carried out less formally.

How Wizard Learning can help?
We at Wizard Learning for example, are doing all we can to help you create appropriate CPD records of the learning you have undertaken.

Firstly we advocate strongly the above CPD process. We are currently developing “gap analysis assessments” in all core and advisory areas to help you assess you current knowledge and understanding levels.

Our extensive range of diploma level courses and assessment packages will also help you to either complete the current crop of diploma qualifications or a structured programme of CPD. Finally we provide all our customers with a CPD record to prove the amount of hours they spend and the subjects covered.

See these pages for more details:
Online training
Structured CPD

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.