Advisers support RDR professionalism

By Nia Williams

15 Jun 2009

The research is the fifth of a series on RDR carried out by Ernst & Young, on behalf of the professional body. It looks at practitioner attitudes to the RDR, and is the first since the FSA's November Feedback Statement.

The main findings include:

Three quarters (73%) say that they anticipate achieving further qualifications, up from last year
Two thirds (66%) agree that the minimum qualification level for advisers should be QCF/OfQual Level 4 or equivalent (diploma level)
Nine in ten (89%) agree that qualified professionals should have to meet Continuing Professional Development (CPD) requirements.

David Thomson, CII Director of Policy and Public Affairs, said: "It is great news that an increasing majority (73%) of respondents envisage furthering their qualifications. This is up from the 70% in the last survey.

"However, our survey, like other recent analyses, shows a slight cooling towards the RDR process, and the recession must play a part in this sentiment. For example, while 60% agree that the RDR will lead to a more professional retail financial services market; this is down from 69% the last time the question was asked. We expect that the forthcoming consultation from the FSA will have a major impact on sentiment.

"Although there may be a slight hardening against the RDR itself, there is continuing support from practitioners for the professionalism element of the proposals, and a belief that the RDR will happen. The evidence of this survey, plus our exam booking data, shows that many advisers are already taking action following the FSA's ‘no regrets' declaration on improving qualifications."

There are mixed views about the timescales for implementing the RDR by the end of 2012, although the qualifications element is viewed by most as tough but achievable. (21% think they will be achievable by most; 30% think that they are tough, but realistic; 28% believe that are unlikely to be achieved; and 21% that they are very testing).

There is, however, a much more optimistic view about adviser numbers, with the majority of advisers intending to stay in the market in some capacity when the RDR proposals are implemented. Contrary to some suggestions in recent months, only 12% of respondents say they would exit the market completely.