13th August 2024

The Value of Professional Qualifications

The Past

Back when I gained my Chartered qualification, through the CII, it took a lot of work but had very little practical value when completed. There were three routes:

1. General Insurance

2. Pension

3. Life Assurance

I was a Chartered Insurer by the Life Assurance route. If I'd worked for an intermediary firm, I could have called myself a Chartered Insurance Practitioner, but instead, I chose Chartered Insurer because I worked for an insurance company at the time.

Unlike today, there was very little recognition of qualifications in Wealth Management. While the Financial Services Act of 1988 introduced the need for a Financial Adviser to have their Financial Planning Certificate (FPC), I think we'd all agree today that that was a very low level, and certainly, there was no great benefit to being Chartered.

Today, it's very different. While the industry standard is still the Level 4 Diploma, which can be gained from a number of institutions, the gold standard is increasingly to be Chartered.

Whereas that qualification was extremely rare in my day, it's now becoming almost a prerequisite for many roles.

Of course, there are still a number of routes, including the CII (incorporating the Personal Finance Society), the CISI, and the LIBF. The CISI even offers a Level 7 qualification. However, the real push is an expectation of greater quality standards in our industry and a need for technical qualifications to demonstrate proficiency.

Of course, that doesn't mean we are all proficient. I may be qualified to give financial advice, but I've never given it, and I certainly wouldn't ever presume to be capable of doing so. Regulation would prevent that nowadays, but back in those early days, there was no such concern. The minimum standard was an FPC or, if an individual just wanted to give mortgage advice, a CEMAP qualification. Even today, we have lower level qualifications in Mortgage and Protection than we do in Wealth.

We've come a long way in the last 35 years, and the industry has really grown up. Back in the early days, it was quite possible to get an agency based on your ability to bring in clients; the quality of the advice given was never really questioned.

The Present

The Retail Distribution Review (RDR) changed all that. I think we'd all agree that introducing a minimum Level 4 qualification wasn't a moment too soon. When we look back, even that was quite basic. Today, Level 6 is becoming the norm, and many companies are insistent on it.

Every now and then, I'm asked by candidates whether it really matters if they have a Level 6 qualification, and I'd probably say it depends on what role you want and, to an extent, how long you intend to remain in our industry. Many of the senior people in our business are not fully qualified because they predate that regime and have other attributes and skills which they've developed along the way, but that seems highly unlikely in the next generation.

I'd say to anyone starting out or even in mid-career, the importance of becoming Chartered is really significant, not only for those who want to give advice, but also those who want to deal with advisers, whether they be Business Development Managers, Sales Managers, Operations Managers, or others. An understanding of the advice process will take you a long way in this business.

It's like being an accountant or a lawyer. Many top jobs are filled with people who are qualified accountants, doctors, or lawyers who may not be practising, but they did get the qualification at one time, and they will all tell you it's held them in good stead ever since.

So, if you are contemplating whether to push on to Chartered level and you still have ambition, I would strongly advise you to get that qualification. This will certainly help if you find yourself unexpectedly “on the market”.

What Happens If I'm Seeking a Role Now and I'm Not Chartered?

The first thing to understand is that your options may be more limited if you're looking for a position in the Financial Planning world. However, all is not lost. It's just important that you focus on Companies and Hiring managers who look at your skills and experience over your qualifications.

Many of the larger companies are using qualifications as a minimum requirement to reduce the number of candidates. In this situation, it is extremely hard to get around that requirement, even though you might like to argue it's not necessarily the particular role you're looking for.

In many ways, that means utilising your networking skills to secure a role where the competition will be less, and the base requirements may be lower.

Which Professional Body?

In theory, all the professional bodies are the same. However, there has been much commentary within the market that the LIBF qualifications are easier. While the Qualifications and Curriculum Authority does not consider that to be the case, that belief can persist, and it's noticeable that the CISI and CII qualifications tend to have a greater cache in the market.

It is also noticeable that the CII & CISI Chartered firms need a director and a minimum number of advisers with the chartered qualification from their chartered body (50% in the case of the CII). While the professional body may have the discretion to recognise those Chartered by other bodies, it is not something that most choose to rely on.

In Summary

The landscape of professional qualifications in the Financial Services industry has evolved significantly over the past few decades. What was once a low-level requirement has now become a rigorous standard, demanding higher levels of proficiency and expertise.

Achieving Chartered status is no longer just a mark of distinction; it’s increasingly essential for career progression and credibility in the field. Whether you are starting out or looking to advance your career, investing in these qualifications can provide a strong foundation for long-term success.

As the industry continues to mature and the bar for excellence is raised, those who commit to continuous learning and professional development will be best positioned to thrive.**********

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