The financial services competency specialist is urging IFA networks to address the extra support needed for advisers to reach the level 4 qualification requirements of the RDR, in addition to providing advisers with the ability to evaluate and analyse complex information regarding clients' financial circumstances and needs.
A major concern highlighted is the marked jump in the degree of difficulty advisers will face in the newly enforced level 4 qualifications compared to the existing level 3 ones. Competent Adviser is concerned that advisers who have not studied for some time could face difficulties coping with the level of study required and require extensive support which, at present, may not have been fully recognised.
Back in November 2008, the FSA published its feedback statement on the RDR outlining what changes it expects firms to make to fit in with the new retail distribution landscape and what qualifications will be expected of advisers by 2010.
By this date, the regulator expects all advisers to have achieved the minimum of QCA level 4, however, with requirements not yet fully defined and the merits of affiliated courses debated, some networks and IFA firms continue to be unsure as to what action is needed to meet the impending deadline.
Gillian Tait, director at Competent Adviser, said: “The FSA have made it clear that ‘grandfathering’ is not an option and with the average age of an IFA now being in the mid-50’s there is a strong likelihood being that it has been a good many years since many last studied for any qualification. There is an urgent need to identify and address any potential ‘memory gap’ that exists prior to beginning studying at this level along with an ongoing requirement to provide hands-on support to these individuals throughout their studies. IFA networks and large firms need to realise this so that advisers can be better prepared to take on board the amount of knowledge required for a qualification of this calibre.
“There is a danger that some networks may be putting this issue on the backburner as the industry debates the merits of the values of certain courses. However, it is vital to implement measures sooner rather than later or the implications of not being ready could be catastrophic.”
