Speaking during a panel debate at International Adviser’s International Portfolio Bond & Financial Planning Forum on Wednesday, the CII director told an audience of financial advisers that the UK standard is no substitute for local tax knowledge.
“There’s a big shift globally in giving financial advice and being a financial planner.
“I agree that the international award from the CII is no use to anyone as far as different jurisdictions [are concerned] as ultimately if someone’s approaching it from a planning perspective then it’s about learning the knowledge of each jurisdiction that you are in and there’s no qualification that covers all of that,” said Lord, former director of UK wealth manager Killik & Co.
Financial advisers working outside the UK can complete an international qualification in financial planning that is equivalent to a UK level 2/3 qualification.
The minimum standard in the UK for financial advisers is Level 4 Diploma from the CII.
Lack of cross-border training
Keith Richards, CII managing director of engagement, told IA: “We would agree that there are no financial planning qualifications that would satisfy every regulatory jurisdiction internationally and often advisers will require additional local top up exams to operate compliantly.
“The Chartered Financial Planner status however is becoming more internationally recognised but even this level of qualification would still require country specific tax and regulation knowledge for obvious reason. Europe is currently different as it allows cross-border operation as long as advisers comply with their country of origin’s regulatory requirements.
“The CII’s ACII and FCI qualifications are of course internationally recognised within insurance across most markets around the world and the financial planning part is something the CII is looking at as part of its international remit.”
Lack of local knowledge
Shane Wood, business development manager for pan-European advisory network OpesFidelio, said despite the high level of qualifications in the UK, such training can be impracticable when taken overseas.
“In the UK there are many qualifications, however the problem is that when UK-trained advisers go abroad they do not have the proper training for that particular jurisdiction.
“For example, if you take a UK-trained adviser to somewhere like France, you essentially have to un-learn everything you have been taught because the French requirements are completely different. That’s because good financial planning starts with good tax planning so advisers must be experts in the tax regime of that country,” he said.
Also speaking at the event, David Howell, chief executive of UK and Dubai-based advice firm Guardian Wealth, believes that “the only qualification that is really cross-border is that of being a US Certified Financial Planner (CFP)”, which he said is recognised in international jurisdictions such as Hong Kong, Singapore and the UK.
“But you still need to have specific knowledge and experience in the jurisdiction in which you are based,” he added.
‘Still some way to go’
Lord, who last month left her role at Killik & Co, said regions such as the Middle East and parts of Asia “still have some way to go” when it comes to adviser qualifications.
The chartered financial planner revealed that when she first went out to Dubai with Killik in 2009, the level of qualifications among advisers working there was “really low” but has since improved, driven by local expat advisory firms pushing their employees to get better qualified.
“There’s been quite a shift in that time. Credit to AES International and Guardian as the level of qualifications is rising because the firms operating there expect their staff to be more qualified.
“There’s still a big difference between the level of expectation of qualifications in the Middle East and the what is expected in the UK, and places like Australia and the US,” said Lord.
