The UK’s retail distribution review requires all UK IFAs to have at least 140 credits by the start of 2013 comprising a mix of exams to give them a diploma level four qualification.
A significant extract in Monetary Authority of Singapore managing director Ravi Menon’s speech at the 50th anniversary celebration of Singapore’s Life Insurance Association in April was his direct comparison of Singapore with the UK and Australia, in terms of raising the entry requirements of financial advisers.
Defaqto compared advisers’ existing qualification levels with the level that they plan to have once the RDR’s rules come into effect, and found that nearly half are seeking to become chartered financial planners or certified financial planners.
With 11% currently holding qualifications above level four, these findings indicate the catalytic affect that the RDR has seemingly had on driving up professional standards.
Fraser Donaldson, Defaqto’s Insight Analyst for Funds, said: “The challenge of achieving higher professional standards set by the FSA is being grasped and many advisers are seeking to differentiate themselves in the new distribution landscape by achieving a higher professional status.”
