LIBF’s Richard Cooper looks at why Level 6 qualifications are becoming more important for paraplanners.
When it implements the new consumer duty in July, the Financial Conduct Authority (FCA) will be setting higher expectations for the standard of care that firms give consumers. For many firms, this could require a significant shift to a more consistent focus on consumer outcomes and to enabling customers to act and make decisions in their own interests.
However, there’s no regulatory requirement to have Level 6 qualifications and no current indication from the Financial Conduct Authority (FCA) that this is likely to change. Despite this, it appears more advisers and paraplanners are looking to develop their skills and knowledge.
While it may not be the most scientific data, we tested this premise by conducting a straw-poll at one of our recent webinars with around 200 attendees. Of those:
- 90% plan to study at Level 6
- 76% had already started or were looking to start their qualifications within the next two years; and
- 14% planned to study at Level 6 in two years’ time.
Perhaps this is because holding a Level 6 qualification – and even becoming chartered – is a good way to demonstrate your competence. Or it may be because the skills you develop at Level 6 enable you to research and create more complex advice propositions and reports. Undoubtedly, the knowledge you acquire at Level 6 will help you meet the new FCA Consumer Duty.
Of course, if you’re looking to progress or change roles, being chartered offers the added bonus of setting you apart from your peers. Chartered status is awarded by professional bodies and learned societies who hold a Royal Charter. It’s only granted to individuals who meet strict qualifying criteria and can demonstrate:
- the highest level of technical and professional knowledge and competence through professional qualifications
- a commitment to keeping knowledge and skills up to date through continuing professional development, and
- ethical conduct by adhering to a code of ethics enforced through disciplinary sanctions.
As such, it tells your clients they’re guaranteed a level of competence and professionalism. That can boost your career and your business.
Choosing a Level 6 provider
If you’re interested in studying at Level 6 and becoming chartered, you have options. There are lots of different routes and awarding bodies – each with their own requirements and time limits.
First, take a look around to find a provider that suits you. You’re not obliged to take your Level 6 qualifications with the same provider you had at Level 4, as all Level 6 providers have recognition of prior learning schemes. With that in mind, take time to find a route to Level 6 that matches the markets you advise in, your preferred learning styles, the most appropriate examinations and the timeline you want to work to.
Some examining bodies, like LIBF, allow certain subjects to be tested in ways that might better reflect your current role. For example, an open book timed assessment mimics what happens when you’re assigned the task of researching products for a client by an imminent deadline. You may also be assessed through case studies and course work, forum contribution or video presentation. Other subjects – due to their regulatory requirements – are likely to remain more formal. It’s worth knowing how you’ll be assessed before you sign up for a qualification so that you can be sure the assessment will take a form that suits you.
Always research the various options available to you and for each consider:
- the amount of study time required
- which exams are mandatory and which are optional
- the different ways that study material is provided, such as online and increasingly through apps
- how your knowledge is tested
- what additional study support is available.
Some organisations will offer tutor support, which is very helpful if you enjoy one-to-one feedback, online forums where you can discuss the learning with others on your course, or a combination of both as LIBF does. There are also external training providers who teach qualifications – on behalf of or in partnership with a professional body – but in a classroom setting.
You may also be able to access specimen exam papers or examiners’ summaries, both of which are useful for exam practice: the first because it gives you an idea of the types of questions that come up; the second, because it will give you tips on what works.
If you can ask colleagues, mentors, and others you know, about their experiences of different qualifications and providers. This will give you valuable insights, especially if you’re talking to someone who knows you reasonably well and understands the way you think, work or learn.
Studying at Level 6
Undertaking Level 6 exams is a major commitment so it’s useful to have a focused strategy. It’s tempting to rush in and sign up to lots of qualifications at once – especially when the qualifications on offer cover topics that interest you. But plot your route and plan ahead so that you have space between each course to recharge your learning batteries.
The other stumbling block with Level 6 qualifications is making time to study consistently. You want to avoid cramming the learning into last-minute sessions. A study plan can help here. You might have an hour before work some days or a couple of hours over the weekend. But look at blocks of dead time too. These can be useful, especially when it comes to revision. You might watch a video over breakfast or listen to course content in the car or on a run.
When you’re putting your study plan together, think ‘little and often’. Small manageable periods of study will help you digest the learning and absorb it. Managing the time and the course content properly will also give you the space to enjoy the learning, which is of course the best bit.
This article was first published in the March 2022 issue of Professional Paraplanner.
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