Press Release

CII response to FSA Retail Distribution Review (RDR) Interim Statement

29 April 2008

The CII Group welcomes the FSA’s Interim Statement on retail distribution review (RDR), and the backing it gives to the industry-led drive to create a step-change in the levels of professionalism in the retail distribution market, and the debate created by the FSA’s suggestions for a “simple landscape” within the sector.

The CII strongly welcomes the commitment to the proposed benchmark qualification for the advisory level - diploma - at Level 4, anchored in the Qualifications and Curriculum Authority (QCA) qualifications framework.  CII qualifications for professional advisers are already compliant with the QCA framework, which will give confidence to advisers seeking to up skill to diploma level now.

We also welcome the recognition that professionalism is not just about achieving higher minimum qualifications but aspiring to excellence e.g. Chartered status.

The CII welcomes the inclusion of a number of the proposals for a ‘package for professionalism’ which we set out in the CII\PFS submission to the RDR in December and echoed recently in the joint professional body statement - the Edinburgh Declaration. Our proposals aim at improving levels of professionalism not only through increased standards of qualifications and competence but also through a step-change in professional behaviour. Being professional is not just about passing exams.

CII Group chief executive Dr Sandy Scott welcomed the FSA’s challenge for an industry-led solution on professional standards and called for the renewed determination to make rapid progress on the professionalism segment of the FSA’s Statement:

“From our perspective we have agreed the broad principles with other professional bodies in the Edinburgh Declaration – to the surprise and delight of many. We have gone beyond this in our own RDR submission and the five position papers we published in the autumn which contained detailed proposals, which we have been testing both with our members and the industry at large, and which we will develop further in the months ahead to create a detailed plan. The skeleton is there, it is time to flesh it out” said Dr Scott.

“While we are pleased that there is a momentum and a strong consensus for the professionalism strand of the review, it is important that in the months ahead there is the same industry-led determination to progress on other aspects of the RDR.  We must not lose sight that the ultimate objective for the RDR is an outcome that raises levels of consumer trust and confidence. It is important to look at the big picture and agree a solution for the whole sector. The Edinburgh Declaration shows that this can be done.

“Our work in developing a response to the RDR has focused on ways in which the industry can work together to increase professionalism, build a more confident and trusted industry as viewed by the profession and customers, and ultimately ensure there is an expanding market and increasing numbers of consumers with access to quality advice.

Robert Reid, President of the Personal Finance Society, said “Change is not always entirely welcome but in this case it provides real opportunities for those firms and individuals who commit to a professional culture , the signs are there that our members are equal to the task and well prepared to make that step up in tested competency. It goes without saying that the key balance will be for the need to establish the new benchmark for ultimate benefit of the public whilst managing the transition as advisers attain the new level of qualification”.

“I believe that in developing a response to the RDR we have brought together interested parties around a common rallying point that of professional standards. Providing the public with a reliable source of advice can only expand our market to the mutual benefit of the adviser and his client”.

The CII also welcomed the recognition of the long term importance of tackling across the basic financial services through the ‘Money Guidance’ proposals.

Dr Scott said that the consensus on professionalism provided a dynamic to develop more detailed plans than other parts of the RDR and the CII was ready to spearhead this. In future months, the CII will:

Develop further our discussions with firms developing support packages for advisers
Provide more detailed proposals to create a new professional body framework, including an independent professional standards board which will provide consistently high professional standards across all professional bodies.

Continue to build the support infrastructure to ensure a realistic transition to the new Diploma benchmark qualification
Continue informing and supporting our members through the RDR process and timetable through our RDR website, conferences and member surveys
Work with the industry on developing innovative ideas to bring new talent into the industry respond to all issues identified by the Interim Report on professional standards.
 

• Copyright 2008 Dod's Parliamentary Communications Ltd
• About ePolitix.com
• Stakeholders
• Contacts
• Terms & Conditions
• Blog guidelines