IFA Julie Lord has criticised the Chartered Insurance Institute for allowing companies to have chartered financial planner status and claims it devalues the qualification.
The CII said earlier this month that companies can apply for chartered status as long as 50 per cent of the principals are chartered and 90 per cent of other advisers are CII members.
Lord, managing director at Cavendish Financial Management, says: “This could mean that a firm of two principals, one of whom is qualified as a chartered financial planner, could employ 100 advisers with only basic qualifications and, as long as the firm pays CII fees for 90 of these, they could call themselves a chartered firm.”
Lord says the public may believe they are dealing with someone better qualified than they are and it devalues the work individuals put in to achieve chartered status. She says: “Lesser qualified people will be chartered by implication if they work for a chartered firm.”
CII business development director Steve Jenkins says: “Chartered status will enable firms to demonstrate their commitment to the highest standards of professional behaviour and ethical practice. This will build the strength of the profession, not dilute it.”