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.
Pension sharing: two bites of the cherry
A pension sharing order (PSO) cannot be varied at a future date. In addition, if you are awarded a PSO from your partner’s pension you cannot apply for a second PSO for the same marriage on the same pension. It’s therefore important to ensure you take good legal and financial advice during your divorce negotiations. …
Do you know how much money you need to save for your retirement and future need?
Do you know how much money you need to save for your retirement and future need? Well, you could be asking yourself the wrong question. This is the equivalent of asking “I want to buy a new car. How much will it cost?” If you’re looking for a basic, small 2 door car it will…
“Thank you for your directness”
Sometimes coaching needs to be non-directive. You let the coachee get to their own answer by asking the right questions. They then end up with a solution that’s right for them and their circumstances rather than a solution someone else thinks is right. They are then much more likely to want to achieve this.…