This industry, which makes a contribution of £57.5 billion to UK GDP, is an important global centre in which the performance of individual employees can impact on consumers, investors, business and the economy as a whole.
The new standards framework for financial services, launched on 10 September, sets in context the work being carried out by the National Learning and Skills Council (NLSC) and the Skills Council to develop work based qualifications as part of the continuing development of the Examination Review (responsibility for which has now been transferred to the Skills Council from the FSA).
"We are developing a standards framework in an international context to raise skill levels across the industry and the contributions of our partners in the process are critical to boost the performance and competitiveness of UK Plc" said Professor David Jackman, chief executive of the newly formed Skills Council for Financial Services.
Some £650,000 of NLSC funding will be channeled into progammes focused on Level 3 qualifications, with further funding coming on stream for Level 2 qualifications.
Considerable progress has already been made in developing a new Advice Skills Qualification, which will reduce the bureaucracy associated with work-based assessment and will help to ensure the competence of financial advisors — some 85,000 individuals. The new qualification complements the assessment processes already undertaken by firms when fulfilling their FSA regulatory requirements. Several employers — large and small — have been actively engaged in ensuring the practical workability of the new assessment procedures including Abbey National, Lloyds TSB, Norwich Union, Standard Life and Bloomsbury Financial Planning, amongst others.
John Williams, head of regulated training and competence at Norwich Union said: "Norwich Union supports the continued development of meaningful and credible qualifications in Financial Services which will benefit consumers and practitioners. We are pleased to work with the Skills Council and share our experience and practice to help ensure this is achieved in a practical and cost efficient way."
Campbell Edgar, director of financial planning at Bloomsbury Financial Planning Limited and also President of the Institute of Financial Planning (IFP) said: "The Institute of Financial Planning and Bloomsbury are pleased to be able to support the Skills Council in developing ways to improve standards and practical tools to establish demonstrable competence in giving client-focused advice. With the Certified Financial Planner ™ accreditation already recognised internationally as a benchmark of competence in the delivery of financial advice, I believe that the development of skills standards in addition to technical knowledge makes eminent sense in the UK retail financial advice community".
The next stage is to pilot how it works in practice - an exercise, rolling out over the next few months and continuing into the early part of 2004, which will bring together employers (some new and some who were involved in the development work) with training providers/awarding bodies and FE colleges and will involve 750 learners. The funding available to participating firms will be a welcome offset to the perceived costs of ensuring staff are appropriately qualified to meet FSA requirements.
As both Chairman to Standard Chartered Bank and National LSC, Bryan Sanderson commented:
"I am delighted that within two months of the government launching its Skills Strategy we are already working in partnership to develop level 3 (A-Level equivalent) and Level 2 (GCSE equivalent) Advice Skills Qualifications. The LSC, as the unifying force of skills nationally, regionally and locally has worked closely with Financial Services businesses and training organisations to develop these qualifications and up-skill staff. This innovative scheme will enable the Financial Services industry to improve productivity and competitiveness on both a national and international level in the future. This is a prime example of how we act as a catalyst between business and education to match delivery with need".
In parallel with progressing Level 3 qualifications which is all part of Stage 1 of the Examination Review, the launch of the Financial Services Standards Framework (Roadmap) on the 10th September heralds the announcement of Stage 2 which will embrace the development of a new financial services qualification targeted at the 200,000+ back office and support staff roles which exist in firms right across the industry. The need for this qualification is being strongly supported by Nationwide Building Society, amongst others.
Stuart Bernau, executive director, at Nationwide said: "By setting national standards for education and qualifications in Financial Services, we have a double win, more knowledgeable employees and a more professional service to consumers. The work of the Skills Council for financial services is a breakthrough in setting standards for the Industry".
Further information regarding the framework will be available on the Skills Council website www.fsnto.org under hot topics.
