Getting your point across

This rather undermines the argument that there should be a 10 year lead-in time for these requirements to come into force - to enable those nearing retirement an exemption from meeting such minimum requirements - and we hope the FSA takes note.

Importantly, this qualification is not just about improving the status of advisers, although it will inevitably do so, it is about improving outcomes for consumers by helping to achieve greater consumer satisfaction by encouraging a bond of trust between adviser and consumer and, therefore, encouraging repeat business, referrals and the potential widening of services.

The most recent Which? research into standards of financial advice found that more than three- quarters of the advisers it investigated had failed to adequately explain to consumers what the keyfacts documents were. It also found that advisers often made misleading statements and that some failed to complete fact finds to a reasonable standard.

Worryingly, more than a quarter of these advisers failed to establish the customers attitude to risk correctly. The research also found that "One of the key problems was that advisers were not asking enough questions.”

What each of these findings highlights is not that advisers were lacking in technical knowledge but that advisers were failing to communicate effectively. It is like teaching: having a brilliant mind and a wealth of specialist knowledge does not necessarily make for a good teacher. The ability to listen, learn and recognise areas that require further clarification are key as is the ability to take a considered and clearly justified approach to a recommendations.

Advisers need to be able to undertake research, analyse the results and present their findings in an easily understood manner. This practical application will be addressed by the Diploma for Financial Advisers.

On completion of this qualification, candidates will be able to evaluate and analyse complex information regarding clients' financial circumstances, needs and relevant considerations. Candidates will also be able to research and critically evaluate options and formulate recommendations. Perhaps most importantly they will also be able to present and explain their findings in a logical, clear, concise and coherent manner.

Mark Roberts is head of financial regulation for the ifs School of Finance