David Jackman, head of industry training and business ethics for the FSA and the key driver behind t...
David Jackman, head of industry training and business ethics for the FSA and the key driver behind the new proposals for training and competency rules says that IFAs already FPC qualified will still have to submit to periodic examination of their knowledge in order to remain authorised under the new regime.
"It's a sort of MOT idea," he says.
And it will be only fair way to ensure that advisers meet the professional standards that the new regime is meant to encourage.
Advisers who enter the industry under the new regime will be required to undergo "periodic assessment" in order to ensure they understand the latest rules and trends affecting particular modules within the single approach model.
In turn this means advisers grandfathered into the new regime will also be required to undergo re-examination in various areas to prove their skills are up to scratch.
Jackman admits it will be costly to implement the new system, but says the industry should see the new regime as an opportunity to secure improvements in customer confidence.
"It would be a missed opportunity if the industry can only calculate the cost. The benefits can end up being worth more," he says.
Jackman also says that the proposed system is far from perfect.
"No exam structure can prevent every problem from happening," he says when asked whether the new regime would give advisers better protection from customer ire as, say, pensions income is slashed.
However, he is adamant that the new system can provide the flexibility needed to deal with changing demands in the industry.
There is much focus on investments in CP157, particularly on ensuring advisers understand risk, understand stock markets, and realise how investments can be impacted by broader economic issues.
Jackman says this is why he wants to see advisers "lock together" the 'securities and derivatives' and 'portfolio management' modules proposed in the single framework model.
He also sees the model as a way to avoid excessive "prescription", which he says would be even more costly, and would not necessarily help advisers face up to depolaristion.
'Failure to pay attention can result in enforcement'
200,000 LISAs opened so far
From June 2019
11 years since launch of three Chartered titles
Hired 200 extra operational staff