Alternative unveiled to certified and chartered status for advisers

The Financial Services Authority (FSA) is supporting the use of ISO 22222 as an alternative standard for the examination of financial advisers.

Speaking at Osney Media’s financial services distribution summit yesterday, RDR team head Amanda Bowe said that the ISO 22222 could be used as an alternative or complementary exam standard to certified or chartered exams.

She said: ‘The RDR paper makes it clear that we are talking about higher professional standards here, not just higher qualifications. For example, we have focuses on chartered or certified because they are the standards familiar to many in the market.

'It might be that the ISO 22222 could provide an alternative or even complimentary standard…We are interested in a range of things that constitute professionalism including ethics, competence, experience and so on. Identifying how best to achieve this balance is one area where the industry could usefully take the lead.’

The RDR discussion paper published in July suggested ‘raising the bar’ of entry level qualifications for financial advisers for the current certificate in financial planning to a diploma in financial planning. Passing the certificate in financial planning would only be sufficient for primary advisers the regulator suggested.

Standards International, the UK’s first certification body for ISO 22222 welcomed the comments.

Director Melanie Blackmore said: ‘It’s great news that the FSA recognizes the importance of this new standard and the part it can play in raising standards for both financial advisers and consumers.’