The FSA is proposing to introduce a 'generic core' of examinations for intermediaries, creating a sy...
The FSA is proposing to introduce a 'generic core' of examinations for intermediaries, creating a system of individual exams for each area where advice may be given.
The consultation paper released last week proposes that advisers sit one exam for investments, one for pensions, another for protection and so on.
This would then be followed by a series of specialist options, providing training for specific activities, for instance related to product types, and specific markets or particular activities, such as dealing with clients.
A further level of training would be provided via case studies, with intermediaries required to compare and contrast a range of product types and produce an overall view for a client.
This would conform with what the Sandler review is expected to suggest when its findings are presented next year. In speaking at an Aifa conference in November, Sandler suggested he was looking at the possibility of implementing generic, core and full advice regimes, with different qualifications required for each.
The significant difference with the proposed examination regime is that people will no longer have to re-sit their basic exams every time a job role has changed. Rather than having to complete all assessments, individuals will now only have to pass the additional specialist options when they want to step up a rung.
Although the FSA did get rid of the required CPD points when N2 arrived on 1 December, the regulator has stressed that they will be reintroduced if the industry is not seen to be taking training seriously.
David Jackman, head of industry training and business ethics adviser at the FSA, said intermediaries could face a form of retesting every two years, designed to ensure they understand how new rules, regulations and products work.
A version of this article first appeared on IFAOnline.
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