For readers unfamiliar with the level 4 Financial Planning qualification, can you explain the background and why it is being created?Following the merger between the CISI and the IFP, we have been developing a new level 4 examination to combine the existing Principles of Financial Planning exam and the CISI’s Private Client Advice exam. This new exam, Financial Planning and Advice, will be available on demand via computer-based testing and will sit in our RDR-compliant level 4 qualification, the
Investment Advice Diploma. This will also be the first unit of the Certificate in Paraplanning and the Diploma in Financial Planning, leading to the CFP
TM certification.
Why is the new qualification important?The aim is that the exam will map to the FCA’s examination standards for this area, so when combined with the level 4 UK Regulation & Professional Integrity, and the Investment, Risk & Taxation exams, the candidate will hold an appropriate qualification on the FCA’s qualification tables for Advising on Retail Investment Products and Friendly Society Tax-Exempt Policies (FCA Activities 4 & 6). Candidates achieving the new IAD pathway (Financial Planning & Advice) will not only meet the eligibility requirement for the Diploma in Financial Planning (of holding an RDR-compliant qualification) which leads to the CFP certification, but will also have already completed the first unit of the Diploma and have only the final financial plan assessment to complete.
Which professionals will this be aimed at?This is aimed at prospective financial planners and paraplanners as well as wealth managers who wish to develop their knowledge and understanding of financial planning and advice.
What are the ultimate goals that the CISI hopes to achieve through the creation of the qualification?
To support and invest in the financial planning sector by enabling candidates to undertake a streamlined professional qualification which meets RDR exam standards and forms the first step towards CFP certification.
How will the new qualification compare to other qualifications of a similar level?This new exam provides financial planning professionals with a direct study pathway to
the global CFP certification and the opportunity to join a network of more than 160,000 professionals who hold the CFP marks. CERTIFIED FINANCIAL PLANNER
TM is the most recognised and respected financial planning certification around the world and enables qualified individuals to provide clients with a holistic approach to achieving their financial and life goals. It is highly sought after by financial planning employers and consumers looking for competent and ethical planning professionals.
How many professionals would you anticipate undertaking the new qualification?We estimate that we will have about 150–200 candidates in the first year.
How will this feed into the larger picture of the CISI developing financial planning further?The new pension freedoms have highlighted the increasing need for responsible, qualified financial planning advice. As a professional body focused on education, the CISI is keen to support the growth of the financial planning sector with relevant qualifications as well as continuing professional development. We have developed a suite of online modules – or professional refreshers and we also run events across the UK.
This year we are holding conferences which will support the financial planning profession, the first – from 25 to 26 May – is the Paraplanner Conference, then the Accredited Financial Planning Firms
TM Conference from 14 to 15 June, and the Annual Conference from 3 to 5 October. All events are fantastic opportunities for financial planners and paraplanners to meet, learn and network.
What other reforms/changes to the exams is the CISI undertaking?The financial planning pathway culminates with the level 6 Diploma in Financial Planning and the CFP certification. The CFP mark is a highly regarded designation. We recognise the value the industry places on this and have listened to the feedback on the case study assessment. There are, we feel, potential revisions which would allow more aspiring CFP professionals to strive to achieve the certification and improve the first-time pass rates. Our very experienced qualifications team are exploring this with the input of experts from the profession.