Development of RDR Exam Standards

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• Development of RDR Exam Standards
• Consultation Event
• Presentation

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Development of Appropriate Exam Standards

• CONSULTATION
• Purpose
• Inform and raise awareness of the new draft
  standards
• Build understanding and acceptance
• Gauge support levels for the core standards
• Identify any specific areas to review or develop
  further
• Take feedback and ideas for improving the draft
  standards
• Maintain industry level dialogue and contribution
  

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Development of Appropriate Exam Standards

• BACKGROUND
• FSA objectives for the RDR programme
• An industry that engages with consumers in a way
  that delivers more clarity for them on products
  and services
• A market which allows more consumers to have
  their needs and wants addressed
• Remuneration arrangements that allow competitive
  forces to work in favour of consumers
• Standards of professionalism that inspire
  consumer confidence and build trust
• An industry where firms are sufficiently viable
  to deliver on their longer-term commitments and
  where they treat their customers fairly
• A regulatory framework that can support delivery
  of all those aspirations and which does not
  inhibit future innovation where this benefits
  customers

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Development of Appropriate Exam Standards

• BACKGROUND
• CP09/18 specific proposals include
• Increasing the professional standards of advisers
• Raise the minimum level of qualification for
  investment advisers
• Establish an overarching Code of Ethics
• Enhanced standards for Continuing Professional
  Development
• Role for a Professional Standards Board (further
  consultation)

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Development of Appropriate Exam Standards

• FSSC ROLE
• Strategic leadership role for education and
  skills development
• Work in consultation with the industry
• Develop the Appropriate Exam (ApEx) Standards for
  the new benchmark qualification requirement for
  retail investment advisers
• Maintain the Appropriate Exam list on behalf of
  the FSA

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Development of Appropriate Exam Standards

• AIMS INDUSTRY OPPORTUNITY
• Step change in professional standards
• Raise the entry level of professional
  qualifications for investment advisers
• Financial advice being seen as on a par with
  other professions
• Attract more high calibre individuals into the
  profession
• Easier access to qualifications through wider
  provision
• Improved mobility through recognition of
  consistent core standards

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Development of Appropriate Exam Standards

• PROJECT BRIEF
• The entry level to be set as a minimum at QCF
  Level 4 / SCQF Level 8 applies to all parts of
  a qualification
• The same entry level requirement would apply to
  all retail investment advisers
• The new standards will include Core Subjects
  common for all
• Plus additional subjects specific to the advice
  activity and segment
• Practical application of knowledge to be a
  central part of all new benchmark qualifications

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Development of Appropriate Exam Standards

• PROJECT BRIEF
• Timescales
• all existing advisers to reach the new benchmark
  level by the end of 2012
• new entrants to move to the new benchmark
  qualification as soon as it becomes available in
  2010
• No exceptions to be allowed i.e. no
  grandfathering
• Current level 4 qualifications no regrets
  policy
• Recognition for legacy higher level
  qualifications which meet the criteria and are
  relevant to the role
• Structured CPD gap-filling also by 2012

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Development of Appropriate Exam Standards

• PROJECT PLAN
• Work with the industry to achieve the project
  brief
• Develop Appropriate Examination (ApEx) Standards
• higher level of learning outcome
• relevant learning content
• application consistent with the role(s)
• reflect the way products and services have been
  developed
• Phase 1 to develop draft new Core ApEx
  Standards
• completed and signed off in August
• further industry engagement and consultation
  Sept to mid-Nov

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Development of Appropriate Exam Standards

• PROJECT PLAN
• Governance Steering Group
• FSA and Professional Standards Advisory Group
• Industry representative Working Group
• Trade Associations
• Professional Bodies
• Awarding Bodies
• Practitioners
• Product providers and Fund Managers
• Sectors represented include Banking, Wealth
  Management, IFA, Stockbrokers, Securities and
  Derivatives, Accountancy

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Development of Appropriate Exam Standards

• PROJECT PLAN
• Process to follow

Appropriate Examination
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Development of Appropriate Exam Standards

• PROJECT PLAN
• Qualification level and size

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Development of Appropriate Exam Standards
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Development of Appropriate Exam Standards

• LEVELS
• In simple terms
• Level 2 Awareness and Basic Understanding
• Level 3 Understanding and Basic Application
• Able to use concepts able to calculate and work
  out answers able to apply rules, facts and
  principles
• Level 4 Detailed Understanding, Analysis and
  Application
• Able to gather a range of information, consider
  and select appropriate options able to
  distinguish between facts and inferences able to
  create meaning able to make judgements about
  value

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Development of Appropriate Exam Standards

• PROJECT PLAN
• Benchmark Appropriate Examination
• CORE UNITS ADVICE UNIT(S) APPLICATION
  STANDARDS APPROPRIATE EXAMINATION STANDARD

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Development of Appropriate Exam Standards

• CONSULTATION
• Purpose
• Inform and raise awareness of the new draft
  standards
• Build understanding and acceptance
• Gauge support levels for the core standards
• Identify any specific areas to review or develop
  further
• Take feedback and ideas for improving the draft
  standards
• Maintain industry level dialogue and contribution
  

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Development of Appropriate Exam Standards

• CONSULTATION
• What we are consulting on
• 3 Core units Financial Services, Regulation and
  Ethics Investment Principles and Risk Personal
  Taxation
• Technical application within each unit
• These are presented as ApEx Standards not
  syllabus detail
• Learning outcome
• Indicative content

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Development of Appropriate Exam Standards

• CONSULTATION
• Summary of content
• Financial Services, Regulation and Ethics
  market overview and global context, the
  regulation of the market and the firms and
  advisers who operate within it, responsibilities
  and expectations of advisers including ethical
  behaviours, the broad range of customer financial
  needs and how the range of products and services
  are used to meet those needs
• Investment Principles and Risk an in-depth
  consideration of the structure, concepts and
  processes relevant to the investment market we
  see today, the characteristics and behaviours of
  assets and the indirect investment products which
  use these assets, multi-level analysis of risk
  and the strategies to manage/minimise risk
  appropriate to clients needs and circumstances,
  investment performance benchmarks and measures,
  investment planning and review
• Personal taxation the UK taxation system as it
  applies to individuals and trustees, basic
  principles of tax planning, taxation of
  investment assets and products, relevance of
  personal taxation to investment advice
• Application based learning outcomes for all key
  areas of knowledge content

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Development of Appropriate Exam Standards

• CONSULTATION
• In your packs today
• Overview of the project
• Copies of the draft standards for the 3 core
  units
• Summary of the step change/improvements over the
  existing benchmark ApEx Standards
• Copy of the on-line questionnaire

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Development of Appropriate Exam Standards

• CONSULTATION
• Working Group discussion and feedback
• For your selected unit
• What do you like about the new draft standards
• What dont you like about the new draft standards
• How relevant are the key improvements
• How realistic are the learning outcomes
• What suggestions do you have to improve the new
  standards

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Development of Appropriate Exam Standards

• NEXT STAGE
• What happens next
• Consultation events continue through to early
  November
• Feedback (on-line and events) consolidated and
  published
• Working Group reviews feedback and proposes
  amendments to the draft standards
• Final version of new core standards submitted for
  FSA/Steering Group sign-off mid-November
• FSSC commitment to consider and respond to all
  recommendations made

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Development of Appropriate Exam Standards

• NEXT STAGE
• What happens next
• Phase 2 WGs to develop the remaining new exam
  standards
• Further consultation period from December through
  to February
• Final ApEx Standards completed, approved and
  published in March 2010
• New qualifications available from mid-2010

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Development of Appropriate Exam Standards

• CONCLUSION
• Thank you for your contribution today
• Continue to raise awareness of these new
  standards
• Encourage others to engage and submit their views
  and feedback
• Go on-line and complete the questionnaire
• THANK YOU