IFAs at odds over value of higher qualifications
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Hall: CPD prevents ‘knowledgefade
Advisers are split over whether higher minimum qualifications will automatically result in better financial advice.
In a panel debate at the Money Marketing RDR Invitational last week, Yellowtail Financial Planning managing director Dennis Hall said he believes it will.
Bamford: State FOS qualifications’
He said: “I do a lot of work with bodies, particularly in the area of exams, and I can see there is such a thing as knowledge-fade and it actually happens quite quickly. So keeping up to date with exams and continuing professional development does drive up our level of knowledge and that clearly has got to help the clients we are working with.”
However, Informed Choice joint managing director Nick Bamford said while he “believes passionately in higher levels of qualification”, this must be combined with skills and relevant experience to improve outcomes.
Succession Advisory Ser-vices chief executive Simon Chamberlain claims qualifications do not guarantee better quality advice.
Chamberlain: ‘No guarantee’
He said: “There are plenty of people with qualifications in prison. I think the issue here is about providing security and a sense of confidence to the consumer and I think qualifications will do that. Whether they provide quality advice will be more to do with how we govern ourselves.”
Independent consultant John Cowan added: “Qualifications to me are a big signal to the consumer that this is a business in transition. That is really what consumers are concerned about - how much it costs to get advice and if the adviser is qualified to give it.” Bamford called on the Financial Ombudsman Service to disclose the qualifications held by its staff members, many of who make judgments about the suitability of advice and firms’ processes.
Cowan: ‘A big signal’
He said: “We have a new chief executive at the FOS now and I think they should come out publicly and state the qualifications of the individuals that do various jobs there. I asked this of the previous CEO and the answer I got was ’They are experienced, some of them even used to be IFAs’ and I’m not sure that’s good enough.
“I think the FOS should publish a list of the qualifications and experience of every single member of their team.”
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