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In October the FSA is expected to publish its full retail distribution review feedback statement and I expect it will take the opportunity to confirm that a QCA Level 4 qualification will be required.

I have said in the past I expected this step change in qualifications to see a number of awarding bodies enter the market to compete with the Chartered Insurance Institute. I was therefore not surprised when the ifs School of Finance announced it intends to offer its own diploma by the end of 2008. Details of the qualification are still very sketchy but competition is generally healthy and I look forward to seeing what the ifs has to offer.

In the meantime advisers will need to look to the CII. The CII Diploma is already accredited at QCA Level 4 and is well established in the market. This gives the CII and its financial services arm, the PFS, a head start. I am sure it is already planning how it will help qualified members to reach the new diploma benchmark.

Studying for the diploma will improve the knowledge and skills of most advisers but I accept there may be a small minority who are already operating at level 4, even though they have not formally completed the diploma (or equivalent). It is for this group that the Feedback statement from the FSA was tantalising. The FSA suggested a form of on the job assessment might be possible. On paper, this looks a good idea, but in my experience few processes are sufficiently robust to meet the needs of the regulator. Perhaps the only exception would be ISO 22222.

ISO 22222 Personal Financial Planning is a competency assessment at QCA Level 4. It assesses an adviser's ability to deliver financial planning ethically and competently. Currently to complete the ISO an adviser needs to hold a QCA Level 4 qualification so it is not immediately obvious how the ISO would help.

However, there is a suggestion that a fast track ISO option could be developed for experienced advisers. This would require the full ISO assessment to be completed, but instead of the full Diploma, a composite knowledge examination at QCA Level 4 could be taken instead. This paper would cover the core diploma papers. While this approach would not remove the need to take Level 4 exams it could reduce the number required.

For this option to work:

1. The committee responsible for ISO would need to grant a temporary fast track for experienced advisers.

2. An awarding body would need to offer the composite paper.

3. Assessment bodies would need to be in place.

This third point is likely to be the most challenging as, to command consumer confidence, ISO needs to be assessed by a body accredited by UKAS. Accreditation requires the completion of ISO 17024 (an ISO for assessors) and, as yet, no organisation has been accredited by UKAS. However two assessment bodies (Standards International and the CII), are working towards ISO 17024 accreditation. I understand at least one is close to completion.

Although a fast track ISO 22222 would not be exam-free and will also not be cheap, it could provide some very experienced advisers with a quicker route to QCA Level 4.

While the CII & PFS are seen as the main professional and educational body for the sector, other smaller institutes continue to deliver really good support for their members. The Institue of Financial Planning falls into the latter category. I like the IFP as it is a sincere, hardworking and aims to build good quality financial planning businesses. I was therefore not surprised to hear it has been developing a set of standards for paraplanners as many of its members employ them. Under their new director of education, Lucy Courtenay, the IFP has established a group of planners and paraplanners to define the job role and to identify the skill set required. It is also considering if a bespoke qualification is required.

IFP has also been running training for paraplanners for over a year and whether the paraplanner role is a stepping stone to becoming a financial planner or a career in its own right, they are people who deserve support and encouragement. So this is an important development. IFP should be congratulated for this work.

The FSSC has recently secured funding to create a National Occupational Standards for paraplanners and I am hopeful that the pioneering work completed by the IFP will be a major influence on the eventually standard.

Peter Williams is head of industry development for Aegon UK