FSA confirms advisers will need statement of professional standing
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The FSA has today confirmed that retail investment advisers will need to hold a statement of professional standing if they want to give independent or restricted advice from January 2013.
In its final rules on professionalism, published today, the FSA says the statement will provide customers with evidence that the adviser subscribes to a code of ethics, is qualified and has kept their knowledge up to date.
The SPS will be issued by FSA accredited bodies which satisfy certain criteria, including that they act in the public interest and further the development of the profession, carry out effective verification services, have appropriate systems and controls in place and provide evidence of continuing effectiveness and cooperate with the FSA on an ongoing basis.
The policy paper also sets out a requirement for investment advisers to complete at least 35 hours of continuing professional development each year, at least 21 hours of which must be structured.
This could involve courses, lectures, seminars or workshops. All CPD has to focus on demonstrable change to improve advisers’ skills and knowledge. FSA research shows that over 70 per cent of advisers are already achieving this amount of CPD.
The FSA says when the RDR comes into force in January 2013, it will start collecting information about individual advisers, such as the qualifications they hold and which accredited body they use.
FSA director of conduct policy Sheila Nicoll says: “Rebuilding trust between customer and adviser is absolutely vital for the future prosperity of the retail investment market.
“In conjunction with the adviser charging rules announced earlier last year, today’s policy statement gives advisers the certainty they need to plan ahead for the RDR, whether that involves establishing a new business model based on adviser charging, working towards new qualifications, or filling gaps with CPD. Now is the time to prepare.
“When advisers open for business in January 2013, a statement of professional standing will be a vital indicator for customers that the person they are dealing with is subscribing to a code of ethics, has up-to-date knowledge and is appropriately qualified.”
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Readers' comments (33)
Ron | 20 Jan 2011 10:42 am
Fine if they removed some cost and work elsewhere, ie introduced the long stop to reduce report length, complexity and cost.
All they do is add work, therefore adding time and cost.
How much do they ultimately think the client can afford?
Great ideas if the client has bottomless pockets.
Have they heard of the word 'budget'?
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Peter | 20 Jan 2011 10:44 am
And I wonder how much this will cost us!!!!!!!!!
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Anonymous | 20 Jan 2011 10:53 am
Will this apply to bank staff and more importantly will the FSA make its saff have a statement of professional standing as they sure dont have now
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Richard Blackshaw | 20 Jan 2011 10:54 am
Oh dear......looks like the FSA have run out of things to do!
Roll on retirement - as I said to my kids who, thankfully are now well paid, happy, hardworking tradesmen - dont even think about coming into the finanacial services industry as you will be constantly hounded by the regulator, will have sleepless nights with worry sometimes, will see your business income dictated to by the regulator and they will also put a strain on your family life and well being.....the only good side is clients as they will either like you or they wont.
I have a question to ask anyone who is coming into this industry.....why would you even consider it. Drive a train or something else, it pays more and you can leave your worry at work.
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Anonymous | 20 Jan 2011 10:59 am
The FSA are intent on adding more and more to the existing layers of regulation. This will protect them from any attempt to break up this Quango. It will also help to further justify their role in the city and the ever increasing staff plus saly increases they have managed to put in place over the past eighteen months.
When we out here have to carry on paying increased costs, dealing with more regulation and trying to be positive about this wonderful industry.
The FSA have said that thier intention is to bring our industry in line with Accountants and Solicitors. I have friend and clients who are both of the jobs mentioned. Their costs and fess are not as high as the ones we have to cope with. I have mentioned what our regulator is up to more than once and the reaction I get is that if they had to do the same they would pack thier jobs in.
We are getting to the point where the joke is now becoming a pantomime.
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Anonymous | 20 Jan 2011 11:05 am
Sheila Nicholl has missed the point. Advisers do not have to 'rebuild trust' with 'customers' because that is the whole basis that the IFA works on. The loss of 'trust' is in the clearly failed regulator whose only real agenda is to take more and more money out of the pocket of consumers through increasing costs of the IFA to provide for the regulators expense accounts and office parties - let's not forget the company cars!!
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Andrew | 20 Jan 2011 11:06 am
Seems like a sensible idea to me.
I look forward to the day when people stop moaning about RDR and just accept that it is happening!! All this time moaning could be used to get ready for the new post RDR world.
We want to be recognised as giving a professional service, therefore raising standards can only be a good thing.
"establishing a new business model based on adviser charging, working towards new qualifications, or filling gaps with CPD" - fairly standard things that we still have almost 2 years to get implemented (plus the amount of time we've already known about RDR)
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Andrew Pritchard | 20 Jan 2011 11:11 am
The comment 'Sheila Nicoll says: “Rebuilding trust between customer and adviser is absolutely vital'
When did we lose the trust of our customers? I haven't and I would think that most of the IFA community haven't.
My customers have lost trust in Banks, large financial institutions, and their Regulators, so why do they not look to sort out these problems rather than pretending to 'fix a problem' with the IFA community.
These comments that are used to justify their actions are unhelpful, antagonistic, and just plain wrong.
They just don't get it!
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cost conscious | 20 Jan 2011 11:12 am
How much to be a member of a "professional Standing" body and what will be the fees each year.
Will the additional FSA costs to collate all this info and who will be paid to audit it all.
To set up a new organisation to keep copies of our Certificates and CPD for approx £200pa is an additional expens the CONSUMER should not have to expect their fees to be contributing to in addition to everything else!
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Mark Walker | 20 Jan 2011 11:13 am
The FSA seem to be making up for their past misgivings and are trying to justify their own existance.
"Rebuilding trust between customer and adviser"? - Well I already have great trust with my clients and so have the majority of IFA's. Perhaps the FSA should have kept a closer eye on the advice given by our Banks where the ethos is all about sales rather than advice? But it is me who once again will be hit in the pocket as 21 years experience seems to count for very little these days!
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