The initial stage of the FSA's Retail Distribution Review (RDR) that looked at raising professionalism in the sector concluded that the minimum qualification level for a Professional Financial Adviser (PFA) needs to be raised, as soon as practicable or certainly by 2012, from Level 3 to Level 4 of the QCA's qualifications framework. Taking DipFA will enable advisers to meet this requirement.
Anne Kiem, Dean of Further Education at the ifs School of Finance said, "The Diploma for Financial Advisers has been designed specifically for the purpose of meeting the needs of raising professionalism that have been identified throughout the FSA's RDR process. This includes the ifs' own research into the educational needs of achieving this. This was an educational exercise. The ifs is not trapped by any legacy systems of what constitutes a ‘professional qualification'.
The ifs has had considerable experience of putting a wide range of qualifications through the FSSC and QCA loop and not just those pertaining to regulatory requirements. It is about designing a programme of learning that is appropriate, that is apposite, that is ‘fit for purpose'.
DipFA will help to ensure that advisers are able to present and explain their findings in a logical, clear, concise and coherent manner. It is not about the acquisition of more and more technical knowledge per se - although the process requires candidates to extend their technical knowledge beyond that contained in level 3 qualifications - it is about the skills needed to effectively address new situations with the consumer in mind.
These are skills that a wealth of consumer research indicates are currently lacking in the financial advice arena. They are also in line with the skills that the FSSC and FSA place increasing importance on in improving standards."
The industry would appear to agree with the ifs School of Finance approach because a substantial number have already registered an interest in taking the qualification. Furthermore, hundreds have commenced their studies and a number of networks have confirmed their willingness to encourage advisers to take the ifs Diploma - the only qualification that has been shaped around the themes of the RDR.
