By 31st December 2012, all financial advisers must hold an approved Level 4 qualification in order to continue providing financial advice to their clients.
This Level 4 qualification is typically a Diploma qualification, issued by the Chartered Insurance Institute (CII) or IFS School of Learning.
A survey by independent financial research company Defaqto has found that 47% of financial advisers plan to obtain qualifications over and above the new minimum level required.
Their research suggests that 56% of financial advisers currently hold a Level 4 qualification, with only 11% holding a qualification over and above this new minimum requirement.
Here at Informed Choice, all nine of our Financial Planners hold a Level 4 qualification, with five already qualified to Level 6 – Chartered Financial Planner and/or Certified Financial Planner (CFP).
Whilst only 11% of financial advisers in the UK are currently qualified to a level above Diploma status, the survey by Defaqto found that 47% plan to obtain a higher qualification after the introduction of the Retail Distribution Review (RDR) on 31st December 2012.
Of course qualifications are only one element that investors should consider before engaging with a financial adviser.
When combined with relevant experience and a defined service proposition, relevant qualifications should be on your checklist when looking for a new financial adviser.
With around one in ten financial advisers not planning to have a Level 4 qualification by the end of the year, asking your existing IFA about their qualifications and exam strategy now would be a wise move to ensure they can continue to look after you from next year.
Photo credit: Flickr/albertogp123
