Industry backs QCF level 3 for pure protection sales
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The protection industry is largely in favour of a some form of professional requirement for pure protection advisers, with QCF level 3 thought to be the most appropriate qualification level.
Currently individuals involved in selling pure protection policies on an advised or non-advised basis are not subject to any examination requirements, though are subject to competence rules. Advisers selling under the Conduct of Business Sourcebook are required to pass an examination which covers pure protection policies.
As part of the RDR consultation paper published by the FSA last December, the regulator asked for views on whether increased professional standards for advisers selling pure protection were needed.
The FSA has now published its feedback statement on pure protection sales as part of its latest paper on professionalism and the RDR.
Some 53 responses came in to the regulator from providers, intermediaries, professional bodies and trade bodies. Overall, the majority of responses were in favour of “some kind of professionalism requirement on pure protection advisers.”
Although some respondents argued that pure protection advisers should be qualified to the same level as retail investment advisers at QCF level 4, a larger group called for professionalism requirements to be appropriate to the needs of protection advisers.
QCF level 3 was deemed to be the most appropriate qualification level.
The FSA says it will continue to examine whether there is a need to introduce professional standards for protection advisers.
The paper says: “The complexity of protection products means that the provision of high quality explanations by firms to consumers buying these products is particularly important.
“Taking into account the feedback received, we will consider further the possible costs and benefits of introducing professional requirements for those selling pure protection, as a way of improving the quality of sales in general and explanations in particular.
“We will also examine other regulatory options to achieve the desired improvement in the quality of pure protection sales.”
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Readers' comments (1)
George Grant | 28 Jun 2010 5:41 pm
I have been in the Industry for over 35 years and have FPC1 2 3 & CeMap. I do not see the need for further qualifications for selling Protection as I have never had any complaints whatsoever and what else do you need to know regarding Protection. This industry is just going well over the top regarding regulation and just a money making exercise.I also sat these exams well in to my forties. Give us experienced advisers a break and let us get on with the job, it is bad enough trying to earn a living with all this ridiculous nonsense.
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