The Retail Distribution Review (RDR)
The RDR has proposed the introduction of new minimum qualification requirements for financial advisers to improve their professionalism, and build on their existing level3 qualifications, evidencing a higher standard of skills, knowledge and behaviours through the completion of an Ofqual, accredited level4 qualification. Please visit our RDR Training Section for related RDR information.
| Timetable |
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| 25Nov 2008 |
FSA releases feedback statement outlining a developmental blueprint, subject to industry feedback |
| June 2009 |
Publication of the FSA’s latest RDR update, brief summary enclosed:
- The same professional standards including QCF Level4 qualification requirements will apply to both independent and restricted advisers (except basic advice)
- A new qualification will be developed by the FSSC. The new qualification will include core subjects:
- Regulation and ethics;
- Personal taxation;
- Investment and risk; and will include application of knowledge, plus subjects relevant to the particular market in which an adviser works.
- Grandfathering to the new qualification requirements has been ruled out
- The FSA is consulting on a work based alternative to written exams for advisers authorized as at 30 June 2009 only. (The option being withdrawn at the end of 2012). This alternative is likely to be primarily oral exam testing the same level of knowledge, carried out by examining bodies using independent assessors.
- Restatement of “no-regrets” policy and existing advisers are encouraged to take a current QCF Level4 qualification now and fill any gaps between this and the new qualification with CPD
- The FSA has accelerated the decision on whether the proposed “professional standards board” should be created as a separate statutory entity, independent of the FSA.
- Proposals made for a clearer definition between “independent advice” and “restricted advice” with a new tougher definition of independent.
- Simplified advice replaces “guided sales” and can be independent or restricted.
- Basic advice relates to the sale of stakeholder products
- Commission replaced with adviser charging for both independent and restricted advice (exception is basic advice)
- A paper will be published in the third quarter of 2009 by the FSA on the shape of future regulation within the mortgage industry.
- Likewise a further paper will be published on the sale of pure protection products in the first quarter of 2010.
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| FSSC consultation for 3 months from mid August to be completed by 2010 |
New benchmark qualification for all adviser entrants (whether independent or restricted advice service) to be developed by the FSSC. |
| End of 2012 |
Under the current proposals practising advisers must obtain a level4 qualification or no longer be able to practise. |
I would have no hesitation in recommending Neil as a very motivated, focused and committed manager who has a strong, specialist knowledge of the UK Financial Services sector.
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