Aifa says it doubts whether the FSA’s statements of practising standards will achieve their objective of restoring consumer confidence.
In its response to the FSA’s consultation paper on professionalism published today Aifa questions how consumer confidence will be improved by the practising certificates.
The trade body argues they will be difficult to police, given the expected number of accredited bodies that will award the certificates.
The statements of practising standards are estimated to cost between £60 and £175 per adviser, and will need to be reviewed regularly.
Aifa says: “All the statement can do is show a consumer that an adviser has achieved an appropriate level of qualification. Most consumers would rely more on personal recommendations and testimonials, not a qualification.
“Therefore we doubt whether the statements will achieve their objective of restoring consumer confidence.”