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So now we know the FSA’s thinking. Its interim report on the RDR was clear that the industry should develop and implement an agreed common framework for professional standards and that the benchmark qualification for the advisory level should be the diploma in financial planning or an equivalent level 4 qualification.

The FSA also recognised that professionalism is not just about achieving higher minimum qualifications; importantly it is also about committing to high ethical standards and robust programmes of relevant CPD. It has also been very clear about the need for industry-led solutions to tackle the challenges ahead and providers, distributors, trade bodies and professional bodies have all been particularly active in suggesting potential ways forward – ever mindful of the needs of the consumer.

For our part, we have adopted a leadership approach. For example, we led on creating the Edinburgh Declaration with its aim of aligning the financial services industry’s professional bodies under an independent professional standards board – an innovative initiative to develop and build an industry consensus around raising standards and professionalism which has been welcomed by the FSA. It sets out a statement of principles covering the following areas:

• Simplifying the “alphabet soup” of qualifications and designations; to improve the public’s understanding and confidence in financial qualifications.

• Improving professional standards and ethics including creating a single independent professional standards board, to create, oversee and develop high standards ensuring consistency.

• Developing a higher qualification benchmark and a transition process to achieve this in an agreed timeframe.

We also seek to inform and guide the market and in recent months we have published a series of position papers seeking to champion professional standards and propose a framework for professionalism in the future. The papers address key issues relating to professionalism such as qualifications, conflicts of interest and the need for the transition for the market to take place over a realistic timeframe and with appropriate support for advisers in order for it to be as smooth as possible.

We have been delighted with the backing we have received in response to these papers from all parts of the market and we believe there now is a real consensus emerging around the need to raise professional standards in financial advice including both standards of knowledge and behaviour. This is evidenced by results from research that we conducted with Deloitte and Touche that showed 92 per cent of our members believe that the future prosperity of the industry depends on improving professional standards. This is particularly interesting because the IFAs that made up the vast majority of the respondents were drawing a direct link between what is good for the customer with what is good for business.

Also the Assosiation of IFA Manifesto for Financial Advice was clear in saying that the public a have right to expect a high degree of professionalism, knowledge and expertise in those that provide advice and the FSA have been consistent in calling for the creation of standards of professionalism that inspire consumer confidence. We too believe that raising standards is essential and that a universally respected profession is a goal worth fighting for.

As part of the debate we are keen to deliver comprehensive and tangible support to help advisers make the transition needed. Already a view has emerged that membership of a professional body ought to be the norm across the financial advice profession – bringing with it an individual commitment to robust and relevant Continuous Professional Development and a Code of Ethics and conduct. Many are advocating compulsory membership of a professional body. In any event customers are likely to have little regard for those who are not part of a professional body.

The interim report cemented the idea that the benchmark qualification level needs to be increased beyond the current certificate in financial planning to a level 4 qualification such as the diploma in financial planning. Indeed research has shown that the public’s expectation is that financial advice will be provided by those with graduate level qualifications like the chartered financial planner

We estimate that these proposals will mean raising the bar for many advisers. Approximately 80 per cent hold the current minimum qualification required and in that context it is really important that advisers are able to access support services that help them on the journey to higher levels of qualification.

In many cases major distribution firms have introduced programmes to drive these initiatives. It is key however that those IFA firms that do not have large infrastructures or support can readily gain access to help them gain the higher standards required, particularly as IFAs may feel apprehensive with regard to the need to pass further exams when, in many cases, they may not have studied for a considerable period of time.

To that end, the CII has been encouraging the major providers that are dependent upon the IFA sector to play their part in this need for support and Scottish Widows and Norwich Union have already taken the initiative by launching extensive support programmes together with the CII to help IFAs address the need to achieve a higher level of qualification.

Our partnership with Scottish Widows is currently being launched across the UK and is seeking to attract and support over 1500 IFAs during 2008. The focus of the Scottish Widows Learning programme is to assist IFAs to graduate from the benchmark certificate in financial planning level up to the diploma in financial planning which will create a step change in knowledge for all successful participants.

The Scottish Widows programme will focus predominantly on tax, pension funding options, pension income options, investment principles, pension planning and investment planning modules. The programme is linked into the Scottish Widows IFA extranet and is designed to provide a clear route map for IFAs to follow as they progress towards the diploma in financial planning.

A range of study support is available which caters for a variety of learning styles. The CII study material includes course-books and updates together with key fact booklets that improve success rates in the exams. Extensive e-learning underpins much of the material including on-line assessments, access to the Scottish Widows resource centre and crucially access to the support of the Scottish Widows face to face training team which has been accredited by the CII. Overall this is a major commitment to support distribution at a time when change is afoot and is essential in helping to raise the bar in a way that ensures as many IFAs embark on the journey as possible. Providers that play their part in this process should be applauded and we are encouraging others to play their part.

Over the next few months, our focus will be very much on ensuring we deliver extensive support across the market as the industry rises to the challenge of higher professional standards – we are very keen that the consensus around professionalism maintains its momentum as we and it is clear others believe working in a true profession will have benefits to all concerned not least our customers’.

We now know the likely outcome of the RDR following the publication if the FSA’s interim report. Increased professional qualifications will become the norm and the threshold is almost certain to be at diploma level and we're keen to help IFAs on the path to achieving these qualifications. We are delighted to have launched the learning programme under the auspices of the Chartered Insurance Institute - dovetailing as it does with the CII's existing study material means advisers can complement the high quality material already available with structured study plans, new e-learning modules, knowledge tests and checkpoints. Many advisers will not have studied for some time so this makes the process of getting back into a study regime as smooth as possible.

Steve Jenkins is the director of business development at the CII