Luiza Todd, director of Bespoke Training Solutions, looks at the different options available for candidates to achieve a Level 4 financial services qualification
Since the Retail Distribution Review (RDR) back in 2012 the minimum requirement for giving advice to retail clients is to have a RQF level 4 qualification. There are a variety of examining bodies offering this qualification, including the Chartered Insurance Institute (CII), the Chartered Institute for Securities and Investment (CISI) and the London Institute of Banking and Finance (LIBF).
So how does an individual know which option is the best one for their personal needs?
CII Level 4. The CII’s level 4 qualification is the Diploma in Regulated Financial Planning. It consists of six R0 units which combined give candidates their required level 4 qualification and the right to use the DipPFS moniker.
This route is probably the most well know, however that’s not the same as being the most well-loved! The six CII R0 papers are far from easy. CII examiners are renowned for having an unusual grasp of the English language when phrasing their question stems!
Candidates can easily ‘defer their success’ with the tougher R0 units and end up ploughing through a large budget to achieve this qualification. R01 to R05 can be sat weekly, R06 has four annual sittings. BTS have had many individuals coming to us for our help with these units but especially R03 Personal Taxation and R04 Pensions and Retirement Planning. Many adviser Academies use this route as their preferred option.
CISI level 4
Three units are required for this qualification known as the Investment Advice Diploma, which entitles the candidate to use the moniker ADSI on successful completion. There are two mandatory units – UK Regulation and Professional Integrity and Investment, Risk and Taxation. Both are tough papers combining standard multi choice questions with questions stems that can be shorter or more scenario based.
From there candidates have a choice of one out of four further units (anyone wanting to be a financial planner must select the Financial Planning and Advice unit).
This examining body is popular with some city firms as some of the additional unit choices relate more closely to the roles they will be carrying out. Additional papers cover subjects such as securities and derivatives.
Don’t however start thinking that this is going to be a quicker and cheaper route. CISI papers are notoriously tough. And unlike the CII version if a candidate ‘defers success’ in a unit three times they then must wait six weeks before having another go, unless an appeal is submitted and accepted. BTS have seen too many candidates having multiple attempts at these units, to buy into the ‘it’s an easier route’ theory…
LIBF level 4
There are three units required for this qualification known as the Diploma for Financial Advisers. Successful candidates can then use the moniker DipFA. Unit 1 is known as FRSE and is broadly based on regulation, compliance, and ethics. Unit 2 consists of course work and an assessed assignment. Unit 3 is a case study-based exam like the CII’s R06 exam.
The LIBF route has grown in popularity as it is potentially a cheaper option, can take less time and appeals to candidates used to a university study approach. Academies such as the one offered by Quilter use this route as their preferred level 4 option.
Future of the Industry
The financial services industry needs to develop its next generation of advisers, paraplanners and other associated financial planning roles. There are many established advisers currently in their 50s and over, many of whom are looking forward to their retirement. So fresh blood is essential for our industry, and such individuals need their level 4 qualification.
Part of achieving success in qualification-based exams is about selecting the right training provider. Thankfully there are now a variety of choices out there, including BTS who offer alternative study guides, e-Learning modules, workshops and the BTS App R0 Study Buddy. Pick wisely as the wrong selection in both your level 4 provider and support materials can end up costing you dear in both time and monies spent.
This article was first published in the November 2021 issue of Professional Paraplanner.
About Bespoke Training Solutions
Bespoke Training Solutions (BTS) have been supporting regulated exams for 18 years, specialising in R0 support with outstanding candidate tracked results and feedback. Resources include digital and printed study guides, group and 1:1 training, e-Learning modules and a mobile app R0 Study Buddy which provides practice exam questions. Visit www.bespoketrainingsolutions.com to learn more on how BTS can help you on your regulated journey.
