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LIA accredited adviser axed as it joins coalition

The LIA has ditched its acc-redited financial adviser scheme, opting instead to join an unprecedented industrywide coalition responding to the FSA&#39s examination review.

Despite its high-profile launch in November, the trade body has conceded its plans have been overtaken by the FSA&#39s review and it has abandoned the proposals.

It has joined Aifa, Sofa and the IFP in endorsing most of the FSA&#39s proposals for the future of the exams regime although there are some reservations about a single set of designatory letters.

The LIA&#39s proposals had included the accredited financial adviser kitemark, annual retesting at some cost to IFA firms and regular compliance checks but these have now been dropped.

The collective response to Discussion Paper 9, released by the FSA in December, welcomes plans for two tiers of financial advice, where advisers may choose to specialise in certain areas and plans for a generic adviser providing advice on less complicated product areas.

It also says maintaining competence is important and one way of accomplishing this is through retesting but it says this could be done internally within firms rather than by the FSA.

The LIA says there still may be a role for its plans in providing these competency updates but says it has no firm details of how this would work.

On the key proposal to drop the alphabet soup of accredited letters, the joint statement says further discussions are required.

LIA director of public affairs John Ellis says: “The scheme has had to be reconsidered in light of Discussion Paper 9.

“There is still a role to update the adviser, take on board new knowledge and to become a professional financial adviser.”

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