Since 2012, financial adviser offering retail advice have been required to meet the rules and regulations set down by the Retail Distribution Review (RDR). The RDR regulations specify that all UK financial advisers need to hold a QCF (Qualifications and Credit Framework) approved Level 4 qualification. As a rough guide, Level 4 is equivalent to a first-year at degree level.
The main examining bodies offering recognised qualifications are:
If you’re thinking of a career in financial planning, do your research and talk to a range of people who have experience of the different routes.
BTS specialise in supporting the CII Diploma in Regulated Financial Planning. There is also lots of useful information, including pdf downloads of the CII syllabus documents, on our R0 Toolkit pages. We can help you decide if the CII route is for you and advise on next steps to get started. Let’s start by having a look at the different options available for candidates to achieve a Level 4 financial services qualification.
The CII’s level 4 qualification, is the Diploma in Regulated Financial Planning. It consists of six R0 units which combined give candidates their required level 4 qualification and the right to use the DipPFS designation (subject to paid membership).
This route is probably the most well known, however that’s not the same as being the most well-loved! The six CII R0 papers are far from easy. CII examiners are renowned for having an unusual grasp of the English language when phrasing their question stems! Candidates can easily ‘defer their success’ with the tougher R0 units and end up ploughing through a large budget to achieve this qualification. R01 to R05 can be sat daily, R06 has four annual sittings.
BTS has helped many individuals through the suite of exams towards their Diploma qualification.
Three units are required for this qualification, known as the Investment Advice Diploma. This entitles the candidate to use the designation ADSI on successful completion.
There are two mandatory units – UK Regulation and Professional Integrity and Investment, Risk and Taxation. Both are tough papers combining standard multi choice questions with questions stems that can be shorter or more scenario based. From there candidates have a choice of one out of four further units (anyone wanting to be a financial planner must select the Financial Planning and Advice unit).
This examining body is popular with some city firms as some of the additional unit choices relate more closely to the roles they will be carrying out. Additional papers cover subjects such as securities and derivatives. Don’t however start thinking that this is going to be a quicker and cheaper route. CISI papers are notoriously tough. And unlike the CII version, if a candidate ‘defers success’ in a unit three times they then must wait six weeks before having another go, unless an appeal is submitted and accepted. BTS have seen too many candidates having multiple attempts at these units, to buy into the ‘it’s an easier route’ theory…..
There are three units required for this qualification known as the Diploma for Financial Advisers. Successful candidates can then use the designation DipFA.
Unit 1 is known as FRSE and is broadly based on regulation, compliance, and ethics. Unit 2 consists of course work and an assessed assignment. Unit 3 is a case study-based exam like the CII’s R06 exam.
The LIBF route has grown in popularity as it is potentially a cheaper option, can take less time and appeals to candidates used to a university study approach.
Part of achieving success in qualification-based exams is about selecting the right training provider. Thankfully there are now a variety of choices out there, including BTS who offer alternative study guides, e-Learning modules, workshops and the BTS App R0 Study Buddy. Pick wisely as the wrong selection in both your level 4 provider and support materials can end up costing you dear in both time and monies spent.
As a level 4 qualification, none of the units are easy. Having said that, we do have a recommended order in which to tackle them.
Start with R01, then R05, R03, R02, R04 and finally R06. R01 and R05 are the two to start with. R01 gives a foundation knowledge of the regulation of the sector. R05 is a level three unit focusing on financial protection products.
Get in touch with us today and we’ll happily chat about finding the right way forwards with your studies for you. There’s no ‘one size fits all’ approach to achieving your Level 4 as it very much depends on how much time you can put into your studies.
