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Members support single professional standards board

30 April, 2008

The poll carried out in April gave the strongest support yet from financial advisers and other practitioners for raising standards ahead of changes emerging from the retail distribution review (RDR).

A near consensus (95 per cent) of those polled agreed with the CII's idea of a single set of professional standards that would apply to all financial advisers regardless of professional body. Members also strongly supported other ideas set out by the CII in its response to the RDR discussion paper and echoed in the landmark Edinburgh Declaration earlier this month:

• Nearly nine out of ten (88 per cent) members supported the proposal for a standardised framework of qualifications to tackle the Alphabet Soup;
• Four out of five (80 per cent) members agreed with the CII's idea that there should be an independent external board sitting above the professional bodies with powers to discipline practitioners, similar to other professions; and
• Over four-fifths (84 per cent) agreed that the Diploma should be the minimum requirement for advisers at the Professional Financial Planner tier.

Robert Reid, President of the Personal Finance Society said, "This survey of members shows that there has been a shift in the mood music. It is encouraging to see that there is growing support among advisers that a step change in professionalism will be at the heart of the emerging RDR conclusions, despite reservations on other issues."

David Thomson, director of policy and public affairs at the CII said, "The strong support from our members in our package of professionalism is a clear sign that our ideas are on the right track, and there is an increasing agreement on the building blocks that will enhance professional standards."

Shaun Crawford, head of insurance at Ernst and Young, who analysed the survey said, "The latest temperature check indicates an increasingly positive attitude towards the concept of professionalism around the RDR. Back in September, people were sceptical; now members are more confident that the RDR could change perception and attitudes towards this sector. There seems to be recognition of a wider move towards business transition for advisers. For the public at large, this can only be good news."

A summary and the survey appear on the PFS RDR website www.thepfs.org/rdr