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Qualify or leave, says Sesame
Adviser network claims FSA should set deadline of 2013 for advisers to attain proposed minimum qualifications in the industry
Advisers should strive to attain the new proposed minimum qualifications or get out of the industry altogether by June 2013, according to adviser network Sesame.
The group recently released its latest white paper following a meeting with the FSA, and said the financial watchdog should set the proposed deadline of 2013 to complete the process of raising standards within the industry.
Sesame said the "sunset deadline" would help to get rid of those advisers still "hanging on the coat tails" of other advisers committed to achieving the benchmark, which is expected to be the QCA Level 4 qualification.
Any who fail to achieve QCA Level 4 qualification by 2013 should at least get the CII AF5 qualification as a sign of their commitment, Sesame added.
If an adviser achieved at least one of those qualifications, it would prevent an exodus of IFAs that would affect thousands of clients, and the majority of those leaving the industry in five years would be doing so because they were nearing retirement, Sesame said.
Sesame also argued a "line in the sand" needed to be drawn to differentiate between existing advisers and newcomers, as different standards and timescales will be needed for these two groups to ensure the advice profession continues to grow.
The group suggested this should be January 2010, when existing advisers would be able to apply the transitional process, while new entrants would be subject to a different regime.
Ian McIver, managing director of Bristol-based IFA firm Whitechurch Securities, said he was not surprised by the report's recommendations.
"The deadline would give everyone about six years and put an end to 'grandfathering'," he said. "Changes have to be made for everyone, or it will create a two-tiered system.
"That said, while we are not up there with the big boys in regards to the exams we have to take – and there could be improvements made – there is no other industry where, even if you have been practising for years, you must take new exams or risk being disqualified."
