1. Do you think the timescale to qualify by 31st December 2012 is realistic?
The time available from when the qualification requirement was originally announced was probably about right (average of one JO exam a year for those with FPC/CeFA together with MAQ/CeMAP) but many advisers have delayed due to uncertainty and confusion within the industry and others have buried their heads in the sand. It will be tight and undoubtedly not everyone will reach the necessary Level 4 qualification. However, further delaying your exams will only add to your pressure
2. How long could it take to get the Diploma?
It very much depends on you as an individual your existing qualifications, the number of exams you pass each year and how much time you can spend studying as well as providing advice. As a rule of thumb the CII recommends 100 study hours for each JO subject-however, there is a certain amount of cross over (e.g. between JO4 & JO5) .
3. What if I have not attained enough credits by 31st December 2012? Would I have to cease trading or could I make up the shortfall by CPD?
You would have to cease trading until such time as the qualification is obtained.
4. I have been doing the job for years with no complaints. Why do I need more exams?
Your frustrations are understandable but unfortunately RDR does not take into consideration on the job experience with the emphasis on building your existing Level 3 qualifications to evidence a higher knowledge level by a Level 4 exam qualification.
5. Why are you focusing your Courses & Workshops on the JO Diploma exams rather than the IFS route?
The IFS exam is relatively new and there is probably more support available for the CII exams by way of past papers. The IFS Diploma is a 9 month programme and is a lot more self-contained.
6. What are the dates/deadlines for the CII exams?
This information is available at:-
http://www.cii.co.uk/cii/about/deadlines.aspx
7. How can I tell if I may be entitled to claim accreditation (e.g CeMAP Bridge) of prior learning from CII examinations?
Contact the CII. You will need to submit evidence of your qualification by way of the original certificate or a copy that has been certified by a Member of the CII. You cannot e mail or fax the evidence.
8. How can I find out how many credits I have?
Request a Learning Statement, which details your credits. If you log on the following page you can view your statement on line.
www.cii.co.uk/learningstatement
9. What are the mandatory parts of the Level 4 qualification?
It is likely that the new QCF4 qualification standards will be split into three parts: A core of three subjects that everybody will need to take (Financial Services, Regulation and Ethics; Personal Taxation; Investment Principles and Risk). It is these three core subjects that remain the subject of on going discussion. The second part is specific to those providing financial advice and mandatory for all financial advisers (Retirement Planning, Protection; Application of knowledge i.e. giving advice). The third element will be for certain specialist areas such as Pension Transfers and are very similar to the specialist areas we currently have. New Advisers will therefore need to demonstrate competence in at least six areas. Existing advisers need to pass one of the existing Diploma level qualifications by the end of 2012, and can fill any skills/knowledge gaps between the qualification they hold and the new benchmark qualification through structured CPD.
10. What does “gap filling” by CPD mean?
The FSA “no regrets” policy is based upon existing advisers gaining the Diploma through the current JO or IFS exams. The new Diploma-level exams are likely to have more content than the existing exams and create a ‘gap’ for advisers to bridge to bring them up to the new standard. Also, many advisers could have reached Diploma level without covering any of the new core areas at QCF4 level. E.g. you can obtain the CII Diploma without passing JO1 (covering personal taxation), so there is a gap to fill in this area. The FSA has reconfirmed that any gaps can be filled by Structured CPD, rather than by examination, as long as the relevant CPD is completed by the end of 2012. The CII are currently working to identify the gaps between the various old exams and the likely syllabus for the new exams. Once this information is made available then it will be clear what CPD is required.
11. What is meant by a “no regrets” policy?
This is best summed up by the FSA statement:-
‘Given the timescale involved in creating the new examinations, we have stated that you may choose to proceed now with existing qualifications, providing all parts are at a level equivalent to Level 4-and we have set out a “no regrets” position..meaning that you could address any gaps between the Level Four qualification you achieve and the new minimum benchmark requirements using formal CPD rather than further examinations.’ (FSA Qualifications Web Statement 20090306)
12. Will there be more examination dates made available rather than three per year?
This decision rests with the CII but the closer we get to the 2012 deadline we would expect the number of sittings to increase. (as it did with the old FPC requirements) Once the new QCF4 benchmark qualification for financial advisers is finalised then the CII could possibly move to more multiple choice papers that are completed online at Driving Centre-type locations. Advisers could sit exams at their convenience and have more than three dates if required.
13. I already hold the Diploma do I need to take additional exams prior to RDR implementation to reach the appropriate qualification level?
A number of groups do not need to take further exams:-
1. Those holding ACII (Life or Life & Pensions)
2. Chartered Financial Planners
3. Those holding 140 credits (with 80 credits at Diploma level or above)
However, there will be a need to fill any gaps with CPD before the end of 2012.
14. What is happening with the new RO exams? (See mystic Beardy's response to Q12!)
The Diploma in Regulated Financial Planning, set for launch in June, has been set at QCF Level 4 and caters for new and existing advisers.
Its six-module structure broadly mirrors the CII's existing Diploma in Financial Planning.
Advisers part-way through the current diploma can, if they wish, complete their qualification by picking up outstanding credits from units within the new qualification.
The CII says the advantages of switching to the new qualification include the fact advisers can sit exams on any working day at test centres nationwide, and get their results within 24 hours.
Under the CII's current diploma, exam sittings take place on just three set days each year, meaning at least a four-month wait before a failed paper can be tried again.
New entrants would need to sit 10 hours of exams on six units to pass the Diploma in Regulated Financial Planning. But this could fall to as few as four units for existing advisers, depending on the modules they have already passed.
According to the CII, the new Diploma will be "highly competitively priced", although it has yet to finalised how much it will cost advisers until it has been formally endorsed by the FSA, FSSC, and OfQual in early June.
Diploma in Regulated Financial Planning modules:
(R01) Financial services, regulation and ethics (20 credits)
(R02) Investment principles and risk (20)
(R03) Personal taxation (10)
(R04) Pension and retirement planning (10)
(R05) Financial protection (10)
(R06) Financial planning practice (30)
15. Do you have any pass rates for the JO exams?
CII Diploma pass rates
The number of candidates who passed during the year divided by the number who sat the exam.
Exam 2009 2008 2007
J05 54% 54% 60%
J01 54% 53% 53%
J08 53% n/a n/a
J02 51% 43% 51%
J04 44% 46% 55%
J07 43% 42% 45%
J06 40% 37% 43%
J03 26% 40% 45%
Ave 45% 45% 50%
The message from these rates is clear… crystal clear, in order to pass you need to be extremely well prepared!