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CII gap-fill amounts to ‘anti-competitive ploy’
16 September 2010
Advisers studying for the QCF level four diploma have been hit by a series of setbacks after the investment management certificate and the CII’s gap-filling exercises were branded ‘anti-competitive’ and ‘unfair’ by industry insiders. Page, director of Suffolk-based Page Russell, accused the Chartered Insurance Institute of “anti-competitive” tactics by restricting use of its gap-filling tool for retail distribution review qualifications to PFS members only. At the same time, Pascal Dowling, director for data firm Financial Express, claimed unfair practices after the IMC syllabus was raised from a level three to level four qualification. Level three holders of the certificate who had recently received the qualification after sitting the exams were told by the CFA – which rates the IMC – that their qualification was not RDR-compliant, only to discover that the syllabus and exam requirements for level four were the same. He said: “The FSA is pursuing fantastic ideals at the cost of real virtues. The deal is that the IMC syllabus has changed to meet the requirements of RDR, and the exam became a level four qualification at the start of this month. Anyone who took it prior to that has the IMC, but this is only a level three qualification. Now anyone who advises retail clients needs to be level four-qualified. Those who have already passed the IMC must take the CFA level one, which is part of a much harder qualification and gain CPD points, just to meet the requirements of RDR. “By failing to recognise the need for a basic qualification, as well as a more senior level of training, the RDR has cut the bottom out of the market.” In reaction to the CII’s policy, Mr Page called on the FSA to ensure trade bodies are more supportive of advisers who choose to use continuing professional development rather than exams to top-up their level four requirements. He said the CII and Personal Finance Society would be the main source for those looking to do gap analysis to decipher what they need to do to have the relevant requirements for the retail distribution review, but claimed he has been refused access by the CII to the tool and past syllabi as he is not a PFS member, despite non-members being allowed to take the exams. He said: “The FSA in theory gave advisers the ability to do their own gap analysis. The CII’s attitude is anti-competitive. It would be easier in many cases to allow advisers to have the tools to analyse their own gaps. “It is not the trade body’s business that is on the line if IFAs do not get their gaps filled. We are getting close to a point where you commit to one solution – either exams or gap filling. It seems that we are being backed into sitting the exams.” David Ross, a spokesman for the CII, said: “We want certain things to just be available to members. The tool relies on information that is publicly available from the FSA. If you cannot get access to our gap-filling tool, you should be able to establish this from the FSA and fill it now. Most people with a level four diploma will not have much to fill.” The Institute of Financial Planning is also working on a gap-filling tool, which it hopes to unveil in the next six weeks. Mr Page acknowledged that he should have kept books from previous exams, but said that he took the exams before he knew anything about the “no regrets” policy. The FSA announced a “no regrets” policy last December, which said any gaps between existing level four qualifications and future appropriate exams, could be addressed using structured continuing professional development. It said advisers could do their own gap-filling analysis but it would have to be reviewed and verified by an accredited body. Lorraine Tiwari, spokesman for the ifs School of Finance, said: “We offer an approved level four qualification for advisers to be considered qualified by the FSA, but do not have a requirement for people to become members in order to take our regulatory qualifications. While we do not offer gap-filling exams, we do have some top-up CPD learning exercises available and are in the process of developing more.” Published by FTAdviser
