The CISI has suggested the regulator should think again over the timescale for employees to attain an appropriate qualification. The FAMR report proposes an increase by 18 months, from two and a half years to four years.
The CISI, which has 40,000 members including more than 2,000 in financial planning after last year’s merger with the IFP, has released a
statement in response to the publication.
It stated: “While we are pleased to see the FCA endorse the value of qualifications, we are surprised that the timescale for employees to attain an appropriate qualification has been increased by 18 months to four years. The FCA needs to be careful not to send out mixed messages that may devalue qualifications.”
The FAMR report explained that problems with the current system had been identified by consultees during the research process. It stated: “Collectively, stakeholders suggest issues with the existing regime are restricting firms’ ability to train a ‘pipeline’ of future advisers, as there is insufficient flexibility for individuals to develop and become qualified while working within a business.
“As one of the measures to help develop a simple and clear advice framework, the FCA should consult on modifying the time limits for employees to attain an appropriate qualification in the FCA’s existing 'Training and Competence' sourcebook. This will give firms more flexibility to train a new generation of advisers by allowing employees to work for up to four years under supervision to obtain an appropriate qualification and experience.”
The panel said it believed that altering time limits to align with EU regulations from MiFID would strike an appropriate balance. The CISI has also called on the FCA to cut overall regulatory costs for advisory firms, but welcomed the FAMR’s support for automated advice.