The new benchmark qualifications to be offered by the established awarding bodies will underpin the new standards of competence and professionalism, but this isn’t the end of the story.
The existing Level 4 qualifications aren’t even the beginning of the end of the story.
The missing item not thus far discussed very much is the revolution in our sector when it comes to Continuous Professional Development (CPD).
Old Style CPD
Ever since CPD entered our vocabulary in the late 1980s, very little definition of what is required has been available. From attending a seminar session at FA Expo to reading the ‘Pinks’ each week, all of this type of activity was deemed to be CPD.
The cursory FSA inspection of the investment adviser’s training log reviewed the volume and frequency of the CPD activity, rather than its relevance to the technical requirement of the individual’s job role. Standards swung between time spent on CPD (inputs) to learning gained or refreshed (outputs), but rarely was there a consistent approach to reviewing the standard of the knowledge gained. Equally there was little objectivity applied to establishing (proving) that the learning was assimilated or retained, or any consistent inspection that the learning linked back to practical investment advising.
At worst, CPD has been a bit of a joke. Commonly, there was little evidence that the CPD yielded raised advice standards, or reduced complaints, or delivered better customer loyalty. It just took up time, and too often, CPD records were contrived, just to satisfy internal rules or to avoid irritating the Regulator. Many advisers resented the commitment imposed on them, and the time required to write up records of CPD activity.
CP09/31 aims to bring down the curtain on this sad regime, which advisers have been compelled to join in with for over 20 years.
Structured CPD
It is pretty much all good news from this point onwards. There is a big step-up to the new required standards, but the learning outcomes are more relevant to the requirements of the modern investment adviser role, and this should result in structured CPD activities being received with greater enthusiasm.
First of all, a range of technical tools will emerge which will enable investment advisers to establish where the knowledge gaps are, and then create a list of the relevant learning which needs to be gained and evidenced through objective testing.
Advisers can then structure their own learning activities to close these gaps and also obtain a record that demonstrates achievement of these activities. The initial CPD activity may take place over several months, but after that the adviser can embark on a programme which is both structured and continuous. One of the key differences with this new regime is that the CPD activity is focussed on the technical knowledge that the adviser needs for his job role, so no time is wasted on learning activity outside of this.
In the future, the amount of time spent on CPD activities may increase, but it will be orderly, regular, enriching, evidential and most of all, it will do the job it’s been designed to do. It will specifically show the consumer that his / her adviser is bang up to date with the relevant technical knowledge required for him to be trusted, and also that he / she can deliver real, professional added value to the investment advice process.