Financial advisers help people and organisations achieve and maintain their desired financial objectives.
The role of a financial adviser involves meeting with new prospects and existing clients to identify and review personal goals and financial objectives. The adviser will research and recommend appropriate financial solutions, products or services to meet clients’ needs.
The Financial Conduct Authority (FCA), the financial service regulator, imposes strict requirements before you can become qualified as a financial adviser. In order to give financial advice, advisers must first achieve a recognised professional qualification and then gain Competent Advisory Status (CAS status). Financial advisers are required to continue their professional development and training on an annual basis.
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:
Before choosing which qualifications to take, we recommend you do some research into the methods of assessment used by the examining bodies. Some examinations are multiple choice, others are written answers. Some qualifications are assessed using just exams, some use a mixture of coursework and examination, others are heavily coursework based. Each individual will have their own preferences so deciding on a route that best suits your strengths is an important step.
It is also worth considering the qualification preferences of the firms you are hoping to work for; find out if they favour one route over another.
At BTS, we support the CII route so the information in this profile focuses on some of the main qualifications offered by the CII. Below you will find an overview of the CII Diploma in Regulated Financial Planning and the CII Advanced Diploma in Financial Planning, along with links to detailed information on each of the exams that make up the qualifications.
The CII Diploma in Regulated Financial Planning is an RQF level 4 diploma made up of six core modules, commonly referred to as the R0 exams. An RQF level 4 diploma is an FCA requirement for Financial Advisers wishing to provide regulated financial advice. There are six compulsory R0 exam units.
There is no set order in which to take the units, you can sit them in any order you choose. For candidates new to the industry, we usually recommending starting with R01 Financial services, regulation and ethics as this provides a sound knowledge base which is relevant to each of the other units. Then, we recommend taking R05 Financial protection as this is a level 3 unit with no multi-response questions. It is advisable to take R03 Personal taxation and R02 Investment principles and risk fairly closely together as there is significant syllabus cross-over between these two units. R04 should usually be attempted as the penultimate unit due to the knowledge required from the other units. The R06 Financial planning practice unit is usually sat as the final exam as it draws on knowledge and understanding from each of the other R0s.
The CII Advanced Diploma in Regulated Financial Planning
is a level 6 qualification. It is becoming increasingly common for financial advisers to pursue level 6 qualifications and even achieve Chartered status.
To complete the Advanced Diploma, candidates must already hold either the CII Diploma in Regulated Financial Planning or the Diploma in Financial Planning. The Advanced Diploma is made up of a selection of units totalling 290 credits. Candidates must sit one mandatory unit, the AF5 Financial planning process (30 credits). The remaining credits can be made up of a combination of units. A total of 120 credits must be at level 6, taken from the AF exams (including the AF5), a further 40 credits must be at level 4 or above (the J0 and R0 exams), and the remaining 130 credits can come from any unit except LF1. The tables below shows the AF and J0 unit options. The CII Qualifications Framework shows the full range of CII units, their level and credit value.
Achieving Chartered Status
In order to apply for Chartered Status with the CII you will need to:
· Hold the Advanced Diploma in Financial Planning
· Have five years’ relevant industry experience
· Be a CII or PFS member and adhere to the CII’s Code of Ethics and Conduct
· Demonstrate three years’ existing Continuing Professional Development (CPD) and commit to maintaining this activity
Being a financial adviser is a career in its own right and as the role can vary from firm to firm, many financial advisers stay in a variation of the role for their whole career.
More and more financial advisers are now pursuing advanced qualifications to develop their expertise within the field of advice.
Having a background as a financial adviser can also lead to other roles in financial services, for example:
Financial Advisers work within financial planning teams in a range of settings including; wealth management firms, financial advice firms, or specialised advice firms. Many firms also offer the opportunity to be self employed.
Apprenticeships are available in financial planning. Find out more by visiting the Institute for Apprenticeships and Technical Education.
