The ifs School of Finance is piloting a new advanced qualification for financial advisers – the Advanced Financial Advice Module (AFAM).
A number of experienced advisers, representing a cross-section of the financial planning and advisory services in the UK, have already started studying for AFAM.
The final format of AFAM will be determined by analysis of the feedback provided by advisers taking part in the pilots as well as taking into account the outcomes of the FSA’s Retail Distribution Review (RDR).
AFAM follows the ifs School of Finance’s view that the shape, structure and content of qualifications and skills development should follow from the RDR rather than be used to influence or dictate the outcome of the Review.
As part of this debate, the ifs believes that any financial advice qualifications beyond entry level need to focus on analysis, evaluation and the presentation of information, rather than purely testing technical knowledge. Doing so not only better reflects actual practice, it also meets the need to improve such skills, so often highlighted by research as needing attention.
For example, Which? research shows that in all sectors of the distribution chain there is evidence of shortcomings in following necessary processes to ensure advice is appropriate and accurate – especially with regard to failing to use properly information in a fact-find when suggesting options to clients.
ifs School of Finance believes that AFAM will address a need for the development of a specific competency in the provision of financial advice which is not adequately satisfied by existing qualifications. It focuses on how advisers can enhance their ability to communicate effectively with clients. This is particularly important in an area where complex information needs to be clearly set out and understood by clients.
“AFAM has been designed as a post- CeFA qualification for financial advisers and planners to build upon their experience and enhance their ability to understand, present and communicate complex technical information.The qualification will cover investment, protection and retirement planning as well as taxation and trust solutions. Once we have analysed all the feedback from the pilots and the RDR begins to take shape, we will refine the qualification further and then make it available to all. The key to this is to have the skills needs, and the current gaps in meeting these needs, dictate the future rather than attempt to shoehorn existing strategies into future practice,” says Mark Roberts, head of Financial Regulation at the ifs School of Finance.
“The ability to communicate effectively with clients is a key requirement for financial advisers and we are pleased to see a pilot that has this at its heart. We congratulate the advisers who have volunteered to take part in the ifs pilot and await its results with interest,” adds Sam Rees-Adams, director of Education at the FSSC.