“An investment in knowledge pays the best interest.”

Benjamin Franklin – Founding Father of the United States
1706-1790

Qualifications

Not everyone finds the right expert.

Don’t worry, we have over 170 of them.

A degree was once the major deciding factor in who got the job on offer, but as more and more people have gained degrees, especially over recent years, employers in general have become less impressed and more focused on experience. So you maybe can’t be blamed for thinking that you can take financial advice from anyone claiming to be a finance expert and even from someone who works in a financial environment. Nothing could be further from the truth.

All IFAs are regulated by The Financial Conduct Authority (FCA) and, before they can become one, are required to gain one or more qualifications from a variety of disciplines dependent upon the services they wish to advise upon. Until such time as they have gained at least one of the specified regulatory qualifications, no one other than a qualified IFA is permitted to provide advice regulated by The FCA. You must always ensure that anyone you agree to take advice from is such an individual.

The FCA’s primary purpose is to oversee the behaviour of the financial services industry, and to protect consumers from malpractice. They have also been given power to deal with any activity they consider to be suspicious within the industry. Additionally, they have the power to interrogate and ban any financial product which they believe to be suspect, and remove them from the market if they are found in their opinion to have been misleading and mis-sold.

In this section, we will try to de-mystify the plethora of qualifications Advisers hold, to help you with your choice of Adviser to ensure that you choose one that will provide you with the knowledge to right Adviser(s) for the range of services you may need throughout your own life events.

Here To Help

Events happen throughout everyone’s life. None of us can predict exactly when, and many of them will take you by surprise, whether good or bad.

Across the advisory firms in Abacus Associates, there are over 170 Independent Financial Advisers throughout the UK. No matter where you live, there will be a number within a manageable distance with the expertise in the field you are looking for.

Whatever events you are expecting, or not expecting,
MAKE SURE YOU CONSULT AN ADVISER.

The Financial Conduct Authority

The FCA has faced numerous questions over the years about the effect new powers could have on product innovation in the industry, and also the extent to which the implementation of the Retail Distribution Review (RDR) has created confusion about what is meant when advisers are referred to as ‘independent’ and ‘restricted’. In an interview with the Financial Times, Wheatley said the regulator had received negative industry feedback over independent and restricted advice definitions.

We believe it is important for our financial advisers to review the whole market for the financial products they recommend to consumers so we do not restrict our advisers to products within our own range. This means consumers using an Abacus adviser are not compromised by the outcome before they walk through the door of one of our offices, and should ensure they are able to find the best financial solutions for their circumstances.

While our Independent Financial Advisers deal with all advice areas and work to find you the most suitable products for your circumstances, Restricted whole-of-market advisers will do the same, but are limited by the product area they advise on (eg. pensions, investments, protection).

From their own website, The FCA describe their modus operandi, in as simple terms as possible to help you understand how you are protected by using a professional and qualified IFA as follows:

What The FCA do

Financial markets need to be honest, fair and effective so that consumers get a fair deal.

They aim to make markets work well – for individuals, for business, large and small, and for the economy as a whole.

They do this by regulating the conduct of more than 59,000 businesses. They are also the prudential regulator for more than 18,000 of these businesses.

The Prudential Regulation Authority (PRA) is the prudential regulator of around 1,500 banks, building societies, credit unions, insurers and major investment firms. As a prudential regulator, it has a general objective to promote the safety and soundness of the firms it regulates.

They were established on 1 April 2013, taking over responsibility for conduct and relevant prudential regulation from the Financial Services Authority.

Why they do it

They are responsible for regulating a sector which plays a critical role in the lives of everyone in the UK and without which the modern economy could not function. From children’s ISAs to pensions, direct debits to credit cards, loans to investments – how well financial markets work has a fundamental impact on us all.

UK financial services employ over 2.2 million people and contribute £65.6bn in tax to the UK economy. If UK markets work well, competitively and fairly they benefit customers, staff and shareholders, and maintain confidence in the UK as a major global financial hub. Our role is to help ensure this happens.

How they do it

Their strategic objective is to ensure that the relevant markets function well and our operational objectives are to:

protect consumers – we secure an appropriate degree of protection for consumers
protect financial markets – we protect and enhance the integrity of the UK financial system
promote competition – we promote effective competition in the interests of consumers

They are an independent public body funded entirely by the firms we regulate, by charging them fees. They are accountable to the Treasury, which is responsible for the UK’s financial system, and to Parliament.

Their work and purpose is defined by the Financial Services and Markets Act 2000 (FSMA). They work with consumer groups, trade associations and professional bodies, domestic regulators, EU legislators and a wide range of other stakeholders. With this extensive remit, they use a proportionate approach to regulation, prioritising the areas and firms that pose a higher risk to our objectives.

To find out more about Abacus Associates advisers and how to choose the right one go to ‘Find an adviser’ page.

Find an adviser

Financial adviser qualifications

When you contact your financial adviser for the first time, be sure to ask about their qualifications. First and foremost you want to know that they really are legitimate and competent, and secondly you need assurance that they have the specialist knowledge that you may need. A properly qualified adviser will be delighted to show you their certificates to prove that they are fully able to advise you in the relevant areas.

To help you double-check qualifications and understand what they really mean, we’ve put together a glossary of the most common ones you’ll come across.

What grade? – The Qualifications and Credit Framework (QCF)

Most financial qualifications are assessed under the Qualifications and Credit Framework (QCF). You will see that these have a QCF grade, from level 1 to level 8. To help you interpret the levels, we compare them here to more familiar qualifications:

QCF level	Equivalent to:	Notes
1 – 2	Below A-level
3	A-level	Minimum qualification pre-2013
4	Components of a degree	Minimum qualification from 2013 onwards
5 – 7 8	Degree / masters degree PhD	Examining bodies offer advanced examinations at QCF levels 5, 6 and 7. Universities award financial services degrees, post-graduate masters and PhDs

Do they have a Statement of Professional Standing?

Every individual financial adviser who sells investment products, securities or derivatives must have a current Statement of Professional Standing. This indicates that they have signed up to a code of ethics and that they have completed at least 35 hours of professional training each year, to stay up to date with changes in the industry and in regulation.

Below you can view the specific qualifications approved by the Financial Conduct Authority (FCA), the only kind that we recognise. Click on each institute name to see the qualifications that it issues.

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Personal Finance Society qualifications

Abv.	Name	Description	Level
APFS	Associate, Personal Finance Society	To achieve the Associateship grade, individuals would be required to have 6 AFPC (Diploma) units or equivalent. This shows a commitment to continuous professional development.	QCF4+
Dip PFS	Personal Finance Society Diploma	To achieve DipPFS individuals must achieve 140 credits. At least 80 credits must be at Diploma or AFPC level.	QCF4
FPFS	Fellow, Personal Finance Society	To achieve the Fellowship grade, individuals would be required to have 10 AFPC (Diploma) units or equivalent. This shows a commitment to continuous professional development.	QCF4+
CertPFS (DM)	Certificate Personal Finance Society	To achieve the CertPFS (DM) and individual needs to pass 2 diploma units in Regulation and ethics and Discretionary Investment Management.	QCF3

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Chartered Institute for Securities & Investment (CISI)

Here you can find out more about any CISI qualifications that your financial adviser may have, such as:

Cert IM (Investment Management)
CISI Diploma

Always ask to see your financial adviser’s qualifications, including any certificates. For non-CISI qualifications, see our main qualifications menu here.

Abv.	Name	Description	Level
Cert IM	Certificate in Investment Management	This qualification assesses a knowledge and understanding of portfolio investment management.	QCF3
CISI Diploma	CISI Diploma	This postgraduate finance qualification covers the areas of securities, investment, compliance, derivatives, corporate finance and operations. It provides flexibility and choice, enabling candidates to concentrate on areas relevant to their chosen career path.	QCF4
CISI Masters	CISI Masters Programme (Wealth Management)	This qualification offers a postgraduate level specialist qualification encompassing the breadth of knowledge needed to provide a high quality service to clients.	QCF4
IA	Investment Advice	This Diploma covers Regulation, Ethics, Investment Principles, Risk and personal Taxation. Specialist units cover advising in Securities, Derivatives and Packaged Products.	QCF4+
MSI	Diploma	This qualification assesses the knowledge and understanding in areas selected from securities, investment, compliance, derivatives, corporate finance and operations.	QCF4+
PCI	Certificate in Investment Management	This qualification assesses an understanding of the foundations of investment management: accounting, economics and financial mathematics, as well as of the various asset classes and the financial markets so that they can apply these subjects to the fundamentals of investment management – investment analysis, portfolio management and performance measurement.	QCF3
PCIAM	Private Client Investment Advice and Management	This qualification assesses a broad understanding of the principles of private client investment within the context of the current regulatory environment.	QCF4+

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Institute of Financial Planning (IFP)

Abv.	Name	Description	Level
CFP	Certified Financial Planner	An internationally recognised financial planning credential. The holder must demonstrate a combination of experience, financial qualifications (usually AFPC/DipPFS) or equivalent, an IFP assessment, ongoing educational activity (continuous professional development) and ethical behaviour.	QCF4+
FIFP	Fellow Examination	Fellow members will have passed the Institute’s fellowship examinations and have demonstrated five years relevant experience.	QCF4+

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Pensions Management Institute (PMI)

Abv.	Name	Description	Level
APMI	Associate, Pensions Management Institute	The aim of the examinations is to provide Associates with the professional knowledge and skills required to undertake, after sufficient experience, a position as a pensions specialist.	QCF4+
FPMI	Fellow, Pensions Management Institute	Fellow members will have completed five years as an Associate Member and met the continuing professional development requirement for the last three years.	QCF4+

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Chartered Insurance Institute qualifications

Here you can find out more about any CII qualifications that your financial adviser may have, such as:

G60 (Pensions)
MAQ (Mortgages)
Chartered Financial Planner (following on from the APFS qualification)

Always ask to see your financial adviser’s qualifications, including any certificates. For non-CII qualifications, see our main qualifications menu here.

Abv.	Name	Description	Level
ACII	Associateship Examination	Associate members are those who have gone on to secure more advanced qualifications by completing the Advanced Diploma in Insurance or its predecessor the Associateship. This shows a commitment to continuous professional development.	QCF4+
AdvDipIP	Advanced Diploma In Financial Planning	This qualification enables professional advisers to develop specialist planning capabilities, covers topics like: personal tax and trust, business financial, pension and investment planning.	QCF4+
AF1	Personal Tax and Trust Planning	This examination assesses the candidate to develop in depth financial planning skills related to personal tax and trusts.	QCF4+
AF2	Business Financial Planning	This examination assesses the candidate to develop in depth financial planning skills related to business.	QCF4+
AF3	Pension Planning	This examination assesses the candidate to develop in depth financial planning skills related to personal and corporate pensions.	QCF4+
AF4	Investment Planning	This examination assesses the candidate to develop in depth financial planning skills related to investments and the management of investment portfolios.	QCF4+
AF5	Financial Planning Process	This examination assesses the candidate to develop an understanding of the financial planning process when giving advice to clients.	QCF4+
AF6	Senior management and supervision	At the end of this unit, candidates should be able to demonstrate their ability to apply and evaluate the supervision principles and practices in a retail financial services business	QCF4+
AFPC	Advanced Financial Planning Certificate	In order to have completed this qualification, individuals were required to obtain three units. These could have been selected from any combination of the available units at that time but must have included the compulsory G10 unit – Taxation and Trusts.	QCF4+
ALIA Dip + gap fill	Associate	Associate members are those who have gone on to secure more advanced qualifications by completing the Advanced Diploma in Insurance or its predecessor the Associateship. As part of the Retail Distribution Review which comes into effect in 2013 they will have also been required to demonstrate their knowledge is up to date, this process is known as Gap Fill. On satisfaction of the gap fill requirements they will have obtained a Statement of Professional Standing from an FCA Accredited Body.	QCF4
CF2	Investment and Risk	This examination assesses a knowledge and understanding of investment products and the risks involved.	QCF3
CF3	Financial Protection	This examination assesses a knowledge and understanding of financial protection plans.	QCF3
CF4	Retirement Planning	This examination assesses a knowledge and understanding of the various pension products, the pension tax regime and retirement needs.	QCF3
CF6	Certificate in Mortgage Advice	This qualification assesses a knowledge and understanding of the UK regulation environment in the financial services industry, mortgage products, repayment options and the giving of mortgage advice.	QCF3
CF7	Certificate in Financial Planning and Lifetime Mortgage Activities	This qualification assesses a knowledge and understanding of the UK regulation environment in the financial services industry, lifetime mortgage products, repayment options and the giving of mortgage advice.	QCF3
CF8	Certificate in Financial Planning and Long-Term Care Insurance	This qualification assesses a knowledge and understanding of the UK regulation environment in the financial services industry, long term care insurance products and the giving of long term care insurance advice.	QCF3
CF9	Pensions Simplification	This examination assesses a knowledge and understanding of the Government’s simplified pension taxation regime which came into full effect on 6 April 2006 (A-Day). Eight tax regimes for pensions were reduced to one, radically affecting planning and transactions.	QCF3
Chart FP	Chartered Financial Planner	Having achieved the APFS designation, advisers can go onto to achieve this recognisable benchmark of quality and ethical practice for financial services professionals, elevating financial planning and advice in the public eye to the same standing as other Chartered professions. The holder must demonstrate a combination of experience, financial qualifications, ongoing educational activity (continuous professional development) and ethical behaviour.	QCF4+
DipFP	Diploma In Financial Planning	This qualification develops advanced technical knowledge and understanding across a broad range of key advisory areas.	QCF4+
ER1	Equity Release	This examination assesses a knowledge and understanding of the different types of equity release products, risks to the consumer associated with equity release and application of suitable equity release solutions according to the circumstances of different customers.	QCF3
FCII	Fellow Membership	Fellowship of the CII is universally regarded as the premier qualification for those working in the insurance industry. This shows a commitment to continuous professional development	QCF4+
FLIA Dip + gap fill	Fellow	Fellowship of the CII is universally regarded as the premier qualification for those working in the insurance industry. As part of the Retail Distribution Review which comes into effect in 2013 they will have also been required to demonstrate their knowledge is up to date, this process is known as Gap Fill. On satisfaction of the gap fill requirements they will have obtained a Statement of Professional Standing from an FCA Accredited Body.	QCF4
G10	Taxation and Trusts	This examination assessed a knowledge and understanding of the UK tax system, the law and practice of trusts, but also an ability to advise individual clients on the tax treatment of their investments and the use of trusts to meet their current and foreseeable future needs.	QCF4+
G20	Personal Investment Planning	This examination assessed a knowledge and understanding of investments and an ability to advise individual clients on the construction of investment portfolios to meet both their current and foreseeable future needs.	QCF4+
G30	Business Financial Planning	This examination demonstrated that the individual has a knowledge and understanding of all financial planning aspects of running a business and an ability to advise clients appropriately.	QCF4+
G60	Pensions	This examination enhanced general pension knowledge, particularly in pension transfers and opt-out business.	QCF4+
G70	Investment Portfolio Management	This qualification assessed a knowledge and understanding of portfolio investment management.	QCF4+
G80	Long-Term Care, Life and Health Protection	This AFPC module provided an advanced knowledge of life and health protection. The October 2004 examination qualified the individual to advise on long-term care insurance.	QCF4+
GR1	Group Risk	This examination assesses an understanding of group risks, including the operations of such schemes and their features and taxation.	QCF3
H15	Supervision and Sales	This examination assessed specialist supervisory knowledge and skills in the regulatory environment.	QCF4+
H25	Holistic Financial Planning	This examination assessed knowledge and understanding to analyse and evaluate a client’s circumstances and financial needs and produce a holistic financial solution based on an in-depth knowledge of financial services products.	QCF4+
HR1	Home Reversion Plans	This examination assesses a knowledge and understanding of the legislative and regulatory position of home reversion plans and their place in the advice process.	QCF3
IF7	Healthcare Insurance Products	The examination assesses the candidates knowledge of the insurance market, legal principles, procedures and major classes of healthcare insurance.	QCF3
J01	Personal Tax	At the end of this unit, candidates should be able to demonstrate an understanding of: the basic structure of the tax system and self-assessment; the main taxes on income and capital that may be charged on individuals, the self-assessment system and how tax liabilities are computed; impact of residence and domicile on an individual’s liability to UK tax.	QCF4
J02	Trusts	At the end of this unit, candidates should be able to demonstrate an understanding of the: legal principles associated with the creation and management of a trust; main types of trusts that are common in the UK; taxation considerations relevant to trusts.	QCF4

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Abacus Associates manages the personal wealth of many people across the UK and over £1 billion of investments, providing clients with financial advice and access to investment products and services.

Book a Discovery Meeting

We do not charge for initial consultation meetings. If you would like a face-to-face meeting, feel free to pop over to our office or we can always can come to you.
Give us a call today on 01432 343322 and ask to speak with one of our advisers,
or email [email protected]

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Contact Us

We would love to answer any questions and/or schedule a complimentary consultation. Please call or email us using the details below:

Call: 01432 343322

Email: [email protected]

Alternatively, use the 'Adviser Finder' page here >

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01432 343322

Head Office - Hereford

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Abacus

Kemble House, 36-39 Broad Street, Hereford, HR4 9AR

Abacus Associates is a trading style of Saltus Partnership Limited which is authorised and regulated by the Financial Conduct Authority. FCA reference number: 554381

Registered office: Solent Business Park, 4500 Parkway, Whiteley, Fareham PO15 7AZ. Registered number: 07586042

Will writing and some aspects of tax planning are not regulated by the Financial Conduct Authority.

Your home may be repossessed if you do not keep up repayments on a mortgage.

Capital is at risk and you may get back less than you invest.

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