RDR consultation a welcome step forward - Aifa

Issued: 07/01/2010 00:00:00

The FSA's proposals on raising professional standards represents a step forward for the financial services industry, according to Chris Cummings, director general of the Association of IFAs

The regulator's latest consultation paper on the retail distribution review proposes managing and supervising qualifications internally and outlines existing exams and work-based assessments that could count towards new industry standards.

Mr Cummings also said he was pleased the FSA had decided to be more flexible in their approach to alternative assessments.

He said: "The removal of the expiry date for such assessments and extension to new entrants sends a positive message to the profession, and to those organisations that could assist with the delivery of such proposals."

Mr Cummings said he was also pleased the proposal for an independent standards board had been withdrawn. He said:

"We were worried that the extra costs imposed by this new body would outweigh any potential benefit. We do support the proposals for a new register of investment advisers as a way of helping consumers understand which adviser is independent and which are bank sales staff.

The consultation paper is a welcome step forward in the debate on professionalism within the RDR."

Martin Bamford, director of Surrey-based Informed Choice, said:

"I think the paper is positive in terms of the clarity it has added to the process. As we get closer all financial advisers want to know what will happen next. This should dispel any myths that this will no't happen."

Keith Richards, distribution and development director for IFA network Tenet, said:

"It is pleasing to see that the FSA seems to be responding to concerns regarding qualifications, making it much clearer which ones qualify for QCF level four. Advisers can have confidence that any gaps can be bridged by ongoing development.

We also welcome the more pragmatic stance towards work-based assessments. It responds positively to more mature and experienced advisers."

However, Carl Melvin, managing director of Renfrewshire-based Affluent Financial Planning, questioned the idea of managing standards internally. He said:

"The FSA wants to control everything. Who decided they were the best party to deal with this?

They are not an educational body. Professional standards should be developed in a framework with professional bodies, these people have years of experience in delivering educational qualifications and development. It makes sense to use their knowledge and skills rather than doing it all from the beginning with the FSA."

Source: FT Adviser