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This article is relevant to anybody who wants to further their career in the financial services industry.
Achieving qualification as a chartered financial planner is widely regarded as reaching the highest level of the financial planning profession.
More than 2,000 financial professionals have gained chartered status that involves an integrated path of on-the-job experience and gaining knowledge credits in a wide number of topics like tax, investment and pensions, depending on personal career choices.
The route to becoming a chartered financial planner involves successfully studying for and gaining three industry qualifications:
Certificate in Financial Planning (certPFS)
This is the basic financial planning qualification that an independent financial adviser must hold to gain approval from the Financial Services Authority to give advice.
The certificate has five compulsory modules every one must take that cover:
 Passing these modules builds the 70 credits needed to have the certificate awarded. Extra credits can be earned with optional modules like giving mortgage advice, home reversion plans, equity release, long term car insurance and group risks.
Taking the certificate in financial planning is open to everyone without any other entry requirements.
Diploma in Financial Planning
Next stop on the route to becoming chartered is the Diploma in Financial Planning (DipPFS).
An adviser needs 140 credits to gain the diploma, of which 80 must be gained at diploma level. All the diploma study modules are worth 20 credits each. The remaining 60 are brought forward from studying for the certificate in financial planning.
Because the diploma has seven study modules, passing them all would give the 140 credits needed to gain the diploma.
This makes it possible for someone to enter at this level without first gaining the certificate in financial planning, but the diploma is only awarded when an adviser has successfully passed the compulsory modules at the lower level.
The diploma modules are currently split in to three career options–
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Tax
- Pensions and investments
- Investment principles
- Pension income
- Pension funding
- Supervising in a regulated environment
Advanced Diploma in Financial Planning
On completing the advanced diploma, advisers can apply for associate status of the Personal Finance Society (AFPS); by showing he or she has achieved 290 study credits, with 120 gained at advanced diploma level, including 30 credits from the compulsory financial planning process (AFS) module plus 40 at diploma level.
With AFPS status an adviser can apply to become a Chartered Financial Planner, once they can demonstrate five year’s financial industry work experience.
Further studying for another 60 credits means an associate can apply for fellowship of the Personal Finance Society (FPFS).
Each advanced diploma module is worth 30 credits and they cover:
Taking other financial sector learning in to account
Many advisers who have successfully achieved a recognised financial services industry qualification at a comparable level with other awarding bodies can apply for their success to be translated in to credits on the way to becoming a chartered financial planner.
This includes awards for withdrawn study modules.
For instance, passing units towards the Advanced Diploma of Insurance can count towards credits for the AFPS qualification, providing certain rules are met.
Why study for an Advanced Diploma in Financial Planning?
 Taking and passing the advanced diploma is proof you have studied and attained a level of financial services knowledge that places you among the most highly qualified advisers in your profession.
This gives clients and colleagues confidence in your abilities as a financial adviser and shows you have a personal commitment towards learning and improvement.
Advisers who reach the advanced diploma level can use the associated, fellow and chartered status to differentiate their business from those of less qualified financial firms and advisers.
Who should study for the advanced diploma?
The qualification is for anyone who gives advice to clients, including independent and tied financial advisers.
Other professionals like accountants, lawyers and actuaries will also find the qualification adds a more detailed technical understanding to their financial planning expertise.
RDR level 4 qualification for financial advisers
The Financial Services Authority is setting a higher basic skills and knowledge threshold for advisers in an effort to establish greater public confidence in seeking financial advice.
In the industry, this benchmark is known as the retail distribution review (RDR).
The FSA will require all advisers to meet minimum RDR qualification standards by 2012, which is ‘level 4 compliance’. Currently, the FSA and professional bodies are consulting on the training that will meet level 4 compliance.
The Personal Finance Society has told members that after seeking clarification from the FSA, they are confident that the Diploma in Financial Planning (DipPFS) will match the FSA’s requirements.
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There’s some uncertainty surrounding the CII Diploma in Financial Planning at present. In June, the CII will be launching a new Diploma in Regulated Financial Planning. The ultimate aim is for this to replace the current Diploma in Financial Planning. However, the current ‘J0’ exams will still be offered for a few years.
