Whilst AIFA supports the aims of the Skills Council (the SC) we believe its responsibilities relating to the examination framework should be widened and in our response, we raise a number of issues of concern. These concerns will need to be addressed before AIFA can feel confident that the new framework will be able to deliver a system, which will encourage professionalism in the industry and will ultimately be of real benefit to consumers.
Summary of main points
AIFA has supported, in principle, the move from FSA approved examinations to appropriate exams and the modular approach to the exam framework.
Our main concern is that the Skills Council is not assuming responsibility for setting the level of examinations. Neither is it indicating what minimum qualifications are appropriate for specific advisory roles.
Instead, the responsibilities are allocated between the SC, the Qualifications and Curriculum Authority (QCA) and the awarding bodies (such as the Chartered Insurance Institute).
AIFA is concerned that the QCA is not familiar with the industry or its requirements. We question whether it is “best placed to judge”, unaided, whether assessment methods are suitable, or to determine the overall level of the qualification.
What AIFA believes the Skills Council needs to deliver
The SC should encompass a wider degree of responsibility to ensure that:
- minimum exam requirements to give investment advice are clearly defined;
- standards deliver a qualification which is set at a level at least equivalent to the current FPC;
- methods of assessment are robust;
- there is a consistent approach to qualifications;
- qualifications are clearly recognisable by both industry and consumers;
- qualifications are readily portable from one company to another.
Commenting on the review and on the role of the Skills Council, Paul Smee, AIFA’s Director General, said: “AIFA has participated in all stages of the evolving examination review since the FSA first proposed its “single clear framework” in 1999. A consistent, clear approach to industry qualifications is vital if we are to move forward and develop as a profession.
“We believe the Skills Council is on the right track but its responsibilities need to be clarified and, in our view, broadened. There are still many questions about the proposed framework which lack satisfactory answers.
“We accept the urgent need for a swift and satisfactory conclusion to this review and we are keen to continue working with the Skills Council to achieve an examination framework that the industry needs and wants.”
A copy of AIFA’s full response to the Skill Council’s consultative paper can be accessed at the link below:
http://www.aifa.net/publicnews/pressreleases/attachments/cp_apr.pdf
