Advisers will need statement on standards
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Advisers will be forced to get a statement of professional standing from 2013 to give independent verification that they are meeting new professional standards under the RDR.
The FSA’s RDR consultation paper on professionalism, published this week, says the regulator will accredit bodies to award the statements but membership of a professional body will not be mandatory.
The FSA estimates ongoing SPS costs of £60 to £175 per adviser but this is likely to be an overestimate for advisers who belong to professional bodies.
The FSA will take responsibility for policing professional standards rather than creating an independent board. It says a separate body would confuse consumers and lead to a duplication of responsibilities bet-ween the IPSB and the FSA.
The FSA says while it will not pass any regulatory responsibilities to accredited bodies, it expects them to use disciplinary measures, including withdrawing verification of SPS for failure to comply with the rules.
From 2013, advisers must complete a minimum of 35 hours of relevant continuing professional development each year, with at least 21 hours being structured learning.
Advisers without an RDR-compliant qualification will need to fill gaps in their learning with CPD and the regulator is consulting on whether this will need to be verified by an accredited body.
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