The situation for current advisers
Current advisers will be required to obtain an Ofqual accredited level 4 qualification by the end of 2012. There are a number of transitional qualifications available.
If you already hold a qualification, it may be necessary to complete a transitional qualification and/or undertake some CPD gap fill to become RDR compliant.
| Qualification held | Transitional qualification | CPD gap fill required? |
|---|---|---|
| IMC Level 3 (i.e. passed the exam prior to September 2010) | CFA Level I | YES |
| IMC Level 3 Unit 1 UK Regulations and Markets | CFA Level III | YES |
| Investment Advice Certificate | NOT required | YES |
| CISI Level 6 Diploma | NOT required | YES |
| Level 3 qualfication | PCIAM | YES |
To view the FSA's list of qualifications, please click here.
If you do not hold a qualification on the FSA's list, among your options to become RDR compliant 7city offers training towards the following Level 4 exams recently released by the CISI and the CFA UK:
| IMC Level 4 exam introduced in September 2010 | + | CFA Level I | = | RDR compliant |
| IMC Level 4 exam introduced in September 2010 | + | CISI Investment Advice Diploma specialist units (securities or derivatives) | = | RDR compliant |
| Investment Advice Diploma | + | NO OTHER QUALIFICATION REQUIRED | = | RDR compliant |
| PCIAM | + | NO OTHER QUALIFICATION REQUIRED, but CPD gap-fill necessary | = | RDR compliant |
The situation for new entrant advisers
New entrant advisers will be under the same requirement to obtain an Ofqual accredited level 4 qualification, but not the same deadline date. New advisors will be bound by the general rules on meeting competence levels, which is set to be formalised as 30 months from when they begin. Any qualification must meet the criteria of QCF (Qualification and Credit framework) 4 or NQF (National Qualification Framework) 4.
7city offers training towards the following qualifications which will lead to RDR compliancy:
| Qualification | Extra qualification required? | |||
|---|---|---|---|---|
| Investment Advice Diploma | + | NONE | = | RDR compliant |
| IMC Level 4 | + | CISI Investment Advice Diploma specialist paper in Securities or Derivatives, depending on area | = | RDR compliant |
| IMC Level 4 | + | CFA Level I | = | RDR compliant |
To help understand the level of difficulty regarding the step to Ofqual level 4 consider that GCSE grades between A and C are level 2, GCE A levels are level 3, the first year of a degree is level 4, honours degrees are level 6 and a PhD is level 8. So, all in all, Ofqual level 4 is not too daunting a jump. However, the examination approach usually consists of short answers rather than multiple choice and involves more analysis and less knowledge recall than the traditional Level 3 examinations.
Level 4 qualifications recognise specialist learning and involves detailed analysis of a high level of information and knowledge in an area of work. Learning at this level is appropriate for people working in technical and professional jobs, and/or managing and developing others. Level 4 qualifications are at a level equivalent to Certificates of Higher Education.