The Institute of Financial Planning has started awarding “accredited financial planning firm” status to recognise businesses that have reached the highest standards in financial planning.
At the IFP annual conference in Newport this week, the IFP will name the first 25 firms to be awarded the title.
To become an accredited financial planning firm, firms must provide a full financial planning service, including cashflow modelling.
The proposition must be clearly communicated to clients in marketing material and procedures have to be consistent with the IFP’s code of ethics and practice standards.
There has to be a consistent fee structure in place across the company, with staff aware of how the financial planning service differs from financial advice.
On application, at least half of the firm’s FSA registered advisers must be qualified as a certified financial planner, or as a professional or chartered financial planner who holds the AF5 financial planning process unit.
Accredited financial planning firms will pay a fee of £750 per firm upon acceptance and annually on renewal. An additional £25 will be charged per adviser for IFP members, or £75 per adviser for non-members.
IFP chief executive Nick Cann says: “As we get a far greater understanding of how these firms are delivering financial planning, we will be able to share best practice with those aspiring to this model.”