The financial services industry will also be split into independent and restricted advice as revealed in this week’s Money Marketing .
The paper confirms that all advisers, including single-tied and multi-tied, will have to gain the new qualifications. They will apply to “simplified advice”, one of the new streams of restricted advice.
The only stream of advice that will not have to abide by the new professionalism agenda is basic advice
The paper says: “At this stage,we are of the view that because investment advice is being given,the same professional standards should also apply to simplified
“We want to deliver a real change in advisory standards.We are concerned that allowing simplified advice processes to operate at a lower level of professionalism may undermine our attempts to raise standards of professionalism across the industry. It could also be confusing for consumers if all advisers were not required to attain the same level of qualifications.”
The paper sets out details of the professional standards board which will set and implement higher standards for the industry in areas of qualifications, ethics and CPD.
The FSA has decided to accelerate the decision on whether the PBS should be created as a separate statutory entity independent of the FSA rather than having an interim solution of a PSB as part of the FSA.
It states: “This brings the decision point forward to mid-2010 and allows final implementation by 2012 where we originally anticipated a decision on this around 2015. This will maintain momentum in progressing development of the new standards.”
The Financial Services Skills Council will consult on the new benchmark appropriate examination standards for retail investment advisers from mid-August.
There will be no grand-fathering but advisers will be allowed a work-based assessment as an alternative to exams. This will begin on June 30, 2009 and be withdrawn after the end of 2012.