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IFA qualifications not a key concern for consumers
The qualifications held by IFAs play only a minor role in consumers' decisions when selecting an adviser.
According to research carried out by JPMorgan Asset Management (JPMAM), only 19 per cent of respondents said professional qualifications would encourage them to use a financial adviser, with only 10 per cent concerned about an adviser's lack of knowledge or expertise.
Thirty-seven per cent of the consumers surveyed also cited that a personal recommendation is the most significant motivating factor in encouraging them to use a financial adviser.
These findings appear to fly in the face of the Financial Services Authority (FSA) aims set out in the Retail Distribution Review (RDR), which place a strong emphasis on raising the professionalism of financial advisers and raising their level of qualifications.
On the back of the survey, JPMAM has also outlined 10 key considerations and advice designed to assist firms in meeting the Treating Customers Fairly (TCF) initiative.
It also includes advice on defining the meaning of TCF, making TCF part of a firm’s culture, employee engagement, auditing management information, embedding TCF in remuneration policy and learning from the FSA.
The deadline for firms to be able to provide evidence that they are treating their customers fairly is December. After that time, the FSA will take enforcement action against those which fall short.
Jasper Berens, head of UK retail sales at JPMAM, said: "Many firms may be feeling at a loss in their endeavour to tackle the commercial and regulatory pressures in this increasingly challenging economic climate.
"Yet TCF is here to stay. Firms that persist in keeping TCF at the top of the agenda and engage with, rather than resist the initiative, will render themselves best placed to flourish in the changing regulatory environment.
"Ultimately it is those firms that have the drive, vision and creativity to define what TCF means for them that will be the pace-setters for a new standard of professionalism – and that can only be good for the reputation of the whole industry."
The report can be obtained from JPMAM’s website.
