The industry regulator, the Financial Services Authority has launched a further consultation paper regarding the review of examinations. According to David Jackman, head of industry training at the FSA, the proposals should be "a blueprint for professionalism".
The industry qualifications currently cause a lot of confusion for clients, especially when trying to understand how qualified their adviser is. There are a mass of designatory letters available to use, although some only mean that an adviser has the benchmark qualification to advise.
The new examination review will include 11 modules and will define qualifications for those advisers selling lower risk products to clients. The idea is to achieve long-term education for advisers, rather than just taking an exam and calling yourself a financial adviser.
It is disappointing that the FSA have not actually covered the subject of designatory letters in their consultation because it is definitely an area that should be reviewed. Having set designations for certain types of adviser would make it more transparent and easier for the client to choose an appropriate adviser.
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