Adviser Fakes Qualifications

Published / Last Updated on 11/06/2018

Yet again, we find ourselves issuing a warning about rogue financial advisers faking their qualifications.

This week, the Financial Conduct Authority (FCA) has fined an individual £29,300 for faking qualifications in an effort to extend his licence to be able to offer regulated investment and pensions advice.  He was only qualified and permitted to arrange ‘home finance’ i.e.  mortgages and loans and ‘insurance mediation’ i.e.  things like house insurance.

The level of qualifications needed to be authorised to give advice on and arrange permitted investments and pensions in much, much higher than that of a mortgage broker selling general insurance on the side’.  The level of qualifications needed are a minimum up to the equivalent an ‘advanced diploma’ – level 4 or for a degree, level 6 to reach Chartered Financial Planner status.

Qualified financial advisers are required to also maintain a yearly programme of Continuous Professional Development (CPD).  The CPD must be both structured CPD hours, for example, sitting further examinations, attending training courses and technical seminars and presentations, or indeed writing and running technical courses, articles, videos, webinars etc as well as some unstructured CPD hours such as professional reading of technical articles, keeping up to date with news, budget, tax and legal changes.

Each adviser must then make a yearly declaration to their professional body, in our case the Chartered Insurance Institute (CII) and the Personal Finance Society (PFS).  The professional body may then validate and check that the CPD was and is structured and relevant and that the adviser has successfully continued to ‘develop’ their skills and knowledge.  If the professional body is satisfied with an adviser’s declaration and documentary proof presented, they then issue a yearly Statement of Professional Standing (SPS).

Fake SPS

In the above case, the rogue adviser even faked his SPS certificate and sent it to the FCA.  Upon investigation by the FCA with the CII, it was found that the rogue had not achieved the required qualifications and the SPS was fake.

Comment

There are always cheats in all industries.  It makes us sad that between our two owner/directors, they have sat over 50 advanced/professional examinations with the Chartered Insurance Institute and the School of Finance at the Institute of Bankers to achieve Chartered status, Associates and Fellowships of various professional bodies.  Take a look at our qualifications.

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