What qualification should my financial adviser have?
In order to provide regulated financial advice in the UK, a financial adviser must hold an approved qualification covering a number of financial planning subjects. Qualifications are generally from two main professional bodies: Chartered Insurance Institute (CII) and Institute of Financial Planning (IFP).
Advisers must hold a minimum qualification, subscribe to a code of ethics and keep up to date with technical issues through continuing professional development (CPD).
From 1st January 2013, the minimum professional qualification level for all financial advisers (including restricted advisers) is Level 4 Diploma qualification. This is the equivalent of a degree.
If you wish to ensure that your financial adviser has demonstrated a higher level of technical competence, the qualifications to look for are the Chartered Financial Planner qualification from the CII or Certified Financial Planner (CFP) qualification from IFP. These are deemed to be Level 6 qualification and represent a far more robust assessment of technical knowledge and understanding and practical application of financial planning skills.
In addition, each adviser must have a current “Statement of Professional Standing” (SPS) issued by an FCA accredited body. The SPS indicates they have signed up to a code of ethics and completed at least 35 hours of professional training each year. SPS certificates are renewed annually.
Read More
If you enjoyed this post, we recommend the following as additional reading.
Do you ever feel like you’re invisible?
Do you ever feel like you’re invisible? I don’t mean in the fun Harry Potter, Invisibility Cloak type of invisibility. (By the way, wouldn’t that be the best fun ever!). I mean the women who feel that they reach a certain age and then society begins to view them as “past it” and therefore…
What’s the difference between an IFA and a Financial Planner?
There are a number of terms used in the financial services industry to describe advisers. A few of the more common ones are Wealth Manager, Independent Financial Adviser (IFA), and Financial Planner. Do all these terms mean the same thing or are you likely to get different services dependant on who you approach? Probably the…
Review your mortgage regularly
For most of us, our mortgage is the biggest financial commitment we have throughout our life. Given that it provides the security of a roof over our head, it is also one of the most important. As the largest commitment, it is crucial that you get it right, and get the most competitive rate available…