Adviser firms risk falling foul of employment law if they are not clear about what will happen to advisers who fail to achieve the new QCF level four qualification, a law firm has warned.
Dundas & Wilson financial services team partner Patrick Brandt says advisers need to have a clear idea of what will happen to them and how their employment terms may change if they do not reach the new retail distribution review minimum qualification.
He says: “Clear expectations will be crucial if employers need to act on the basis of an employee failing to meet the standards expected. A proactive approach in terms of making employees clearly aware in advance of the consequences of failing to pass such exams will obviously put the employer in a good position legally and in terms of employee relations if it needs to ultimately dismiss an employee for failing to meet the requirements.”
Brandt believes employers also need to clearly set out the alternative assessment route as an option for advisers.
He says: “If an employer and employee part ways, that employee could then go to the employment tribunal on the grounds of unfair dismissal.
“It could be argued they would have a case as they were not given the adequate opportunity to pass, including the option of taking the alternative assessment.”