The FSA has published proposals for enhancing the professionalism of investment advisers under the Retail Distribution Review (RDR).

The FSA is proposing

1.    a new in-house governance structure to ensure these enhanced standards are met, both initially and on an ongoing basis, through achieving a higher level of qualification, meeting higher standards of continuing professional development and adherence to common ethical standards.

2.    that the professional bodies, which are registered and overseen by the FSA, play a greater role in helping their members meet these new requirements.

The FSA provided clarification on a number of issues about the new qualification levels for advisers which must be met by the end of 2012 including confirmation that, should advisers already hold, or be studying towards, one of a set of qualifications listed by the FSA, they will not need to take further exams once the content for meeting the new qualification standard is confirmed.

Advisers will instead be able to meet any gaps in their qualification by on-the-job continuing professional development. In addition, the FSA has provided proposals for removing commission bias from the group personal pension market by ensuring that employers will be able to agree at the start how much investment advice will cost and the method of payment.

The FSA has also set out its views on the extent to which it may be appropriate to apply RDR proposals to pure protection products and invites views on extending higher professional standards to pure protection advice. The FSA is inviting responses to its proposals by 16 March 2010.

Copies of the consultation paper; related newsletter; related press release; and webpage are available  at the following

http://www.fsa.gov.uk/pubs/cp/cp09_31.pdf
http://www.fsa.gov.uk/pages/Library/Communication/PR/2009/173.shtml
http://www.fsa.gov.uk/pubs/cp/cp09_31_newsletter.pdf
http://www.fsa.gov.uk/pages/Library/Policy/CP/2009/09_31.shtml