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Retail Distribution Review
Lessons to be learned
Anne Kiem, dean of further education at
ifs School of Finance, looks at what the
mortgage industry can learn from the
Retail Distribution Review
M
any within the mortgage benchmark education for financial skills beyond the basics of 'conventional
industry will have watched advisers in the form of CeFA. In order advice'.
the latest qualification debate to meet the potential qualification In was back in 2005 that the ifs
within the financial advice requirement of the RDR, the ifs has School of Finance developed Advanced
sector with interest, not least because now introduced the Diploma for CeMAP to provide those who had
the FSA has not ruled in or out a future Financial Advisers (DipFA). DipFA is a already achieved CeMAP with a qualifi-
review along similar lines for the mort- higher-level qualification, pitched at cation that further expands their techni-
gage and general insurance markets. QCA/Ofqual cal knowledge and skills.
The qualifications debate has raged level 4, and is
for a generation and across advice sec- for advisers It is clear, however,
Advanced CeMAP builds
upon the core compe-
tors, with the Retail Distribution Review who have tence of Treating
(RDR) serving as the latest bout of col- passed CeFA
lective navel gazing. Despite the rash of or an equiva- that the benchmark
Customers Fairly (TCF)
with supervision, alterna-
vested interests, it is worth remember- lent qualifica- tive residential lending,
ing that the industry, the regulator and tion. It is
the trade bodies are united in one over- designed to standard for qualific-
complaints handling and
equity release.
riding aspiration – increased confidence give advisers
in the financial advice process and the skills for
recognition of the key role that advisers clear unam- ations will be raised
Super adviser
Many mortgage advisers
play in ensuring consumers are well biguous com- are now also becoming
served. munication based on a solid foundation cross qualified in financial advice,
The RDR proposals are wide-ranging of knowledge. completing further qualifications such
and represent a radical review of the Whether or not the FSA introduces as equity release and long-term care
financial advice sector. Revised business the same level of compulsion for mort- insurance and are on their way to
models, remuneration, transition meas- gage advice as it has done for financial obtaining another higher level qualifica-
ures and succession planning are all advice, it could be argued that the quali- tion through DipFA. This new breed
themes that are being carefully consid- ty of mortgage advice needs to be as of 'super-adviser' recognises that
ered by the financial adviser communi- good, and advisers as competent, as any continuing education provides them
ty. It is clear, however, that the other form of advice. After all, a mort- with the necessary diversification
benchmark standard for qualifications gage is the single largest investment needed to survive. As the financial
will be raised and the requirement to most people will make. We are going adviser of tomorrow will most likely be
attain a higher level qualification in through extremely difficult times with charging a fee for their services, it is
order to continue advising has under- the property and mortgage markets in essential that they are able to demon-
standably been recognised as a priority. crisis. Quality advice has never been strate professionalism and, in hand with
Many advisers are subsequently taking more needed such as, for example, in life experience, qualifications are an
immediate action to become qualified the challenging area of remortgaging. essential part of this development
in advance of the likely deadline of process.
December 2012. Qualifications In this the 200th anniversary of
Long before this financial crisis or the Darwin's birth the lesson is that in the
DipFA start of the FSA's RDR, the mortgage current economic crisis if you don't
In addition to providing CeMAP, the industry and the ifs School of Finance take control of your professional devel-
most widely held benchmark qualifica- got together to provide qualifications opment, consider your aspirations and,
tion for mortgage advisers, the ifs that allow advisers to develop, and therefore, evolve you run the risk of
School of Finance provides similar demonstrate to clients, knowledge and becoming suddenly extinct.
March 2009 Mortgage Introducer www.mortgageintroducer.com
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