15th February 2012

Restricted versus independent

We have spoken in the past on a few topics. Looking at latest Panacea I read with interest the article by John Joe McGinlay on restricted versus independent.

I am having great difficulty getting straight answers on whether present qualifications sufficient to be able to advise on "investment trusts / etfs" per se post 2012 which I believe will be necessary in order to call ourselves independent, and independent we will be.

I did my Dip PFS, and a few extras - I've done my CII gap fill, had it checked and have a Statement of Professional Standing. It was when viewing that on CII I noted that I am authorised for core activities (4) + pensions.

The further options are "securities" and "derivatives".

I am busy doing all the AIC webinars on investment cost etc., but cannot understand whether this will suffice, or whether I am expected to do another level 4 exam in investment (IMC)

The irony is that we and 99% of IFAs have included in our "standard" FSA permissions, dealing in equities, warrants etc., It SEEMS to all be changing from 1/1/13.

If my reading is correct a HUGE percentage of advisers will be caught out, and find they cannot advise on investment trusts / etfs so will not be able to call themselves "independent".

Hope you, or your resources can help.

Kind regards

Andrew G. Barnes Dip PFS
AGB Financial Services Ltd

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Comments (2)

Hi Andrew,
Securities are essentially individual shares or bonds / gilts etc. Derivatives means advising on individual derivatives.
Investment trusts and ETFs are within the definition of retail investment product and your permission to advise and arrange is covered by DipPFS (with gapfill as appropriate if you got to Level 4 under older qualifications).
If you are separately authorised to advise on securities or derivatives there are further qualification requirements ... contact me at IFA Centre if you would like more information or support!!
With kind regards,
Gill.

Gillian Cardy   16/02/2012   09:07
Gill,

Many thanks - very helpful - have tried several times with CII and AIC witohut success.

ag   16/02/2012   14:23

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