Qualifications need to be consistent

Commenting on the RDR Qualifications Credit Framework (QCF) Level 4, Mark Wilson, professional edge consultant at AXA Winterthur Wealth Management said: “It is essential that that any new framework, and the resulting examination tracks, which are developed by the professional bodies, achieves the following outcomes:

• every adviser has the same core knowledge and skills, regardless of the type of advice being delivered
• the framework provides flexibility for advisers to obtain qualification modules which are relevant to the advice they give
• a clear and consistent approach between the professional bodies
• guidance in filling the gap for existing QCF Level 4 advisers.

“Under some of today's qualification frameworks, advisers have the ability to pick and choose which modules they sit when completing their qualifications. Any new framework must ensure that all advisers have the same core skills:

• regulation/ethics
• principles of financial planning
• taxation, including trust planning and the different tax wrappers
• investment principles - risk and asset allocation.

“Once advisers have obtained the core modules, they should then be able to choose which further modules they are going to sit, which are relevant to the type of advice services they offer and the advice channel which they are in. For example, there does not seem to be a great deal of value in requiring a restricted adviser to have a detailed knowledge of derivatives, if they are only able to advise on a range of pension and collective investments.

“Any new qualification frameworks developed by the professional bodies in response to the revised framework, needs to be consistent in terms of the level of effort required in order to complete them. They should also be fully interchangeable so that advisers and consumers can understand the framework and what the qualifications stand for.

“For advisers who have already gained QCF Level 4 status, in order to ensure consistency in knowledge, it would be necessary to see specific guidance given in terms of the gaps which need to be filled dependent on the type and age of the qualification obtained.”