SII calls for restricted licence for specialist advisers

27 October 2009 11:35 am | By Nicole Blackmore

In its response to the RDR, the SII says the FSA must review its proposals for alternative assessments with consideration of the role of specialists.

The SII says: “We urge the FSA to review its proposals for alternative assessments especially for the small number of experts, in specialised areas such as Eurobonds, who are already operating at a level well above level 4, but for whom the new examination proposals will not be relevant but who nevertheless fall under the RDR requirements. We suggest that a restricted license may be an option.”

The SII says there is strong support among its members for compulsory continuing professional development, an industry-wide code of ethics and an increase in examination levels for investment advisers.

It says: “Whilst the Institute and our members strongly support the raising of standards for existing advisers across the sector from level three to level four, equating to first year undergraduate level, there was also overwhelming support from our roadshow participants for new entrants to aspire to level six, the level of a graduate qualification.

“We believe that FSA should consider stating a  longer term objective to raise standards to level six for new entrants post 2012.”

SII chief executive Simon Culhane adds: “We received strong feedback from our members for the FSA to specifically consult on the case for mandatory membership of a professional body. Not only is this cost effective, but membership of a credible, chartered, professional body whose sole remit is to holistically combine examinations, continuing professional development and ethics, is the embodiment of professionalism and is well understood by the public from its interaction with other professionals in other sectors.”

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