Fourth Deadly Money Mistake Using A Lower Qualified Adviser
Published / Last Updated on 16/08/2023
It seems that every industry and trade in the UK now has designatory letters for members. Some are achieved by studying and passing advanced examinations as well as documented working experience in their trade. Usually, most designations will also require ongoing study and training as part of a Continuous Professional Development (CPD) programme.
For some designatory letters in certain trades, you can secure a few letters after your name by simply joining an organisation and for some you don’t even have to prove experience or competence or pass any due diligence tests meaning you have simply bought some letters after your name to say you are a member of a particular trade body.
This is the fourth deadly money mistake: Using a lower qualified financial adviser. As you will see from below, designatory letters after a financial adviser’s name does not mean they are a fully qualified adviser as there is an ‘alphabet soup’ of qualifications levels.
A. London Institute of Banking & Finance:
CeMAP – Certificate in Mortgage Advice and Practice. Equivalent to a Level 4 qualification (A level and into 1st year undergraduate degree level) in advising clients on mortgages.
B. The Chartered Insurance Institute (CII and its subsidiary the Personal Finance Society PFS):
Chartered status is available to members that have achieved the highest levels of academic attainment and professional achievement. There are four Chartered titles:
- Chartered Insurer
- Chartered Insurance Practitioner
- Chartered Broker
- Chartered Financial Planner
|
Education Standard |
Requirements |
General Insurance Designation |
Financial Services Designation |
|
1st Class Honours Degree |
Fellow – premier level of qualifications, exam pass credits – 290 credits (in approximately 12-15 advanced topics) and a minimum of 5 years experience. |
FCII (Chartered status) |
FPFS (Chartered status) |
|
Higher National Diploma or 2nd Class Honours Degree |
Associate – advanced level of qualifications, exam pass credits – 290 credits (minimum 120 credits in 7 specific regulated topics plus a minimum 40 regulated credits at Diploma level rather than Certificate level). |
ACII (Associate status) |
APFS (Associate status) |
|
National Diploma |
Member – completed a series of exam pass credits – 100 credits (minimum 6 regulated topics or 140 credits with a minimum 80 regulated credits at Certificate level). |
Dip CII |
DipPFS |
|
National Certificate |
Member – completed certificate level examination (equivalent to A Level standard in specific financial areas such as Paraplanning, Securities Advice and Dealing or Discretionary Investment Management. |
Cert CII |
CertPFS (now withdrawn) and new designations now as CertPFS (Paraplanning), CertPFS (Securities) and CertPFS (DM) |
|
New Entrant |
Member Student just starting study or in progress. |
Ordinary Member |
Student Member |
C. The Chartered Institute for Securities and Investments (CISI):
- Chartered Wealth Manager
- Certified Financial Planner
|
Education Standard |
Requirements |
Wealth Manager Designation |
Financial Planner Designation |
|
Post Graduate Professional (Degree) |
Diploma in Wealth Management or Diploma in Advanced Financial Planning |
Chartered Wealth Manager |
Certified Financial Planner (CFP) |
|
Post Graduate Professional (Higher National Diploma) |
Certificate in Pension Transfers & Planning Advice, Certificate in Private Client Investment Advice and Management, Certificate in Advanced Financial Planning, Diploma in Investment Compliance, Diploma in Investment Operations, Diploma in Capital Markets, Diploma n Corporate Finance, |
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Advanced (National Diploma) |
Certificate in Climate Risk, Advanced Certificate in Global Securities Operations, Climate Risk Certificate, |
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Qualifying (National Diploma) |
Certificate in International Advanced Wealth Management, Investment Advice Diploma, Certificate in Paraplanning, Managing Operational Risk in Financial Institutions, Certificate in Investment Management, Green & Sustainable Finance Certificate, |
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Qualifying (National Certificate) |
International Certificate in Wealth & Investment Management, Combating Financial Crime, Global Financial Compliance, Risk in Financial Services, Investment Operations Certificate, IT in Investment Operations, Capital Markets Programme, Certificate in Corporate Finance, Islamic Finance Qualification, |
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Foundation |
Foundation Qualifications in: Introduction to Investment, International Introduction to Investment, Fundamentals of Islamic Banking & Finance |
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Chartered Financial Planner v Certified Financial Planner
- Chartered Financial Planners via the Chartered Insurance Institute will have passed examinations with greater technical knowledge across a wider range of taxation, trusts, law, and the economy and less so on practical financial planning and modelling. More technical than practical.
- Certified Financial Planners via the Chartered Institute for Securities and Investments will not have passed as many technical examinations but will have studied in greater details the reality of delivering financial advice, lifetime cash flows, disaster scenarios, varying degrees of risk and inflation, tax planning and the provision of a comprehensive financial plan. More practical than technical.
In our opinion neither Chartered or Certified is better than the other, both have extremely high standards for both technical and practical learning and the Financial Services Skills Council classify them both at degree equivalent status. Just don’t go for lower-level ‘Certificate in X’ qualifications and only look for fully qualified Chartered Financial Planners or fully qualified Certified Financial Planners.
Check out our independent financial advisers qualifications: Chartered
