Press Release

CII sets out blueprint for new RDR benchmark qualification (QCF Level 4)

Third paper in professionalism

29 May 2009

The third Paper in Professionalism published by Chartered Insurance Institute Group (CII) proposes a suggested structure for the benchmark Level 4 qualification for RDR.

The third in the CII's series of Papers in Professionalism was prepared by a team of practitioners and offers an in-depth view into the future of financial services qualifications. It is part of the CII's drive to raise levels of professionalism across the sector and to provide a suggested model of what the new benchmark could look like to help the Financial Services Skills Council (FSSC), and the market in general, develop the new RDR qualifications requirements.

Recommendations from the paper include:

Level 4 qualifications should meet the Ofqual requirements for a Diploma at Level 4 (i.e. at least 370 hours of study) and this should apply across awarding bodies to prevent qualifications arbitrage a review of testing methods, including the suggestion of multiple choice assessment a reviewed structure to the Level 4 qualification based around core subjects.

The new benchmark qualification for the financial services profession should introduce core subjects similar to the current benchmark but in greater depth. The CII's proposed course framework includes 3 compulsory core areas:

Fundamentals, including:
UK financial services, regulation and ethics
Investment principles, risk and advice
Taxation

Products and their uses, encompassing:
Debt and protection products
Investment products
Pension products

Personal financial planning

After completing study of the core areas a candidate would then choose from a range of ten additional modules allowing them to specify their qualification to their area of work - business financial planning or specialist investment products, for example.

The report recommends that firms and advisers should be able to choose between different qualification providers on the basis of such issues as the suitability of exams and syllabuses as well as cost and convenience.

Dr Alexander Scott, chief executive of the CII, says:

"We strongly believe that there should be no compromise over standards of rigour, although vigorous competition on other aspects such as cost and convenience is essential. To establish a true benchmark that can be offered by a variety of providers there must be consistency of quality and approach and it must satisfy the public interest test."

"We have also designed this proposed model in the wider context of promoting professionalism. We see the new benchmark as part of the ladder to greater professionalism in financial advice – not simply a test to reach a minimum standard. It is vital that the new Level 4 qualification facilitates future career development as the profession matures."

"We have set out this suggested model for the profession and other stakeholders to discuss and debate. We include some thoughts about testing methods, and what might sit underneath the new Level 4 structure. We do not believe this is necessarily the last word, but hope it is a valuable contribution to the debate and an insight into our developing thinking."