This simple guide from the CII/Personal Finance Society (PFS) describes how to gain the Diploma in Financial Planning.
Given the proposals outlined in the initial FSA Retail Distribution Review (RDR) document, it is anticipated that the Diploma will be the minimum qualification requirement for financial advisers in the new retail distribution model.
The RDR proposals are already having an effect. The CII has seen a significant increase in the numbers of advisers entering the Diploma in Financial Planning, with exam entries in 2007 up by almost 200% on 2006.
As an adviser currently holding the FPC, Certificate in Financial Planning, CeFA or equivalent, the thought of recommencing study for a higher professional qualification may appear daunting. Before anything else, you will need to know where you stand at present, how best to get started, what sort of time commitment will be required, how much it will cost and what help is available in terms of study and revision materials. We have all the information you need and can provide the necessary support to help you achieve the Diploma in Financial Planning.
And given the emphasis in the RDR on professionalism and, in particular, appropriate behaviour, it is clear that membership of a professional body such as the PFS/CII will be of great benefit to any adviser seeking to develop their financial services career. The support and guidance provided to members enhances technical understanding and helps develop an ethical stance appropriate to genuine professionals.
The information on this page and in the
downloadable PDF at the bottom of the page will help you begin your journey to professional status in the RDR environment.
What is the Diploma in Financial Planning?
The Diploma in Financial Planning is a qualification which builds on existing knowledge gained through qualifications such as the FPC, Certificate in Financial Planning, or equivalent. It develops advanced technical knowledge and understanding across a broad range of key advisory areas:
- Personal taxation
- Trusts
- Business taxation
- Pension funding
- Pension income
- Investment
- Supervision in a regulated environment
The Diploma is modular in structure, with no compulsory units. This means that you can pick and choose the subjects you want to study, allowing you to develop a learning programme that reflects your job role, sector specialism and career aspirations.
As well as being an objective measure of your improved technical knowledge, completing the Diploma allows you to demonstrate your enhanced status by use of the designation ‘DipPFS’ (membership and CPD requirements apply).
What is involved in completing the Diploma?
You need to accumulate a minimum of 140 credits. These are awarded as you achieve passes in exam units, with the exact value of credits (number and level) varying according to the individual units selected. As a practicing financial adviser, you already hold a qualification that can contribute towards your credits target.
What does this mean in practice?
- You must hold 80 credits at Diploma level (not necessarily from the current Diploma subjects, as exams taken prior to 2007 under discontinued study routes including, but not limited to, the AFPC and Mortgage Advice Qualification (MAQ) which provide Diploma or Advanced Diploma level credits, count towards this requirement).
- The remaining 60 credits should come from any of the examinations offered within the CII financial services qualifications framework (or comparable to that offered by other awarding bodies such as the IFS or SII).
- Crucially, you can include any credits gained in respect of relevant qualifications or exams you already hold. For example, holders of the FPC 1994 scheme (three exam qualification) automatically have 50 Certificate credits to count towards the target total.
Note: The Diploma will only be awarded where you hold one of the following or an equivalent: FPC, Certificate in Financial Planning or CeFA.
I want to achieve the Diploma.
How do I find out what I need to do?
Firstly, determine how many credits you already hold. This will tell you what you need to do to complete.
In the case of CII exams/qualifications, go to www.cii.co.uk/learningstatement and submit a request for your personal ‘Learning Statement’. This will list the credit values for each exam you have completed (including those from other awarding bodies you have told us about – to submit details of non-CII exams go to www.cii.co.uk/accreditation).
The most common qualifications held are listed below, together with the corresponding credit values.
A full listing of credit values for CII exams can be found in the Credit listing at the bottom of this page. Other bodies, such as the IFS and SII will confirm details of exams passed with them.
| Awarding body | Qualification held | Credits |
|---|
| The CII | FPC pre-1994 scheme (2 exam version) | 32 |
| FPC 1994 scheme (3 exam version) | 50 |
Certificate in Financial Planning
(current 5 exam version) | 70 |
| IFS | CeFA (3 exam version) | 50 |
| CeFA (current 4 exam version) | 70 |
The Securities
Investment Institute | Investment Advice Certifcate | 70 |
Next, choose your study path
You have a wide range of options depending on your completion requirements or career objectives. Full details on the subjects can be found in the ‘Diploma/Advanced Diploma in Financial Planning’ brochure or the ‘Certificate qualifications for the advice sector’ brochure.
Flexibility is the key. Subject to the requirement of having a minimum of 80 Diploma level credits and 140 credits in total, it is your choice how you achieve the target.
In terms of how long you take to complete, it is up to you. However, we are finding that completion within 2–3 years is common, and that where a candidate already holds credits for exams passed over and above those gained through the FPC or equivalent, this period is frequently shorter.
The following links detail the completion routes typically followed by advisers employed in a range of roles in studying for the Diploma:
Combined study option
It is also possible to study for the Diploma simultaneously with the Advanced Diploma in Financial Planning. This is because the latter develops specialist financial planning capabilities based around the technical knowledge gained at Diploma level.
I know what I need to do. How do I proceed?
Once you have identified how many and which units you want to take, you need to plan your study schedule and decide the content of your learning programme.
Study schedule
Diploma exam sittings are half-yearly in April and October (entry deadlines being February and August, respectively). Certificate exams, which are delivered online, are available throughout the year (date availability varies between individual exam centres).
We recommend that you allow 100 hours to complete a Diploma unit and between 20 and 70 hours for each Certificate unit, according to the unit selected. However, these figures are indicative and the actual time required does vary from candidate to candidate.
Typically, candidates commence study three to four months before each exam, but clearly this is down to personal preference.
Learning programme
Learning styles and preferences vary and it may be some years since you last undertook formal study. We have therefore developed an unrivalled range of learning materials to make the process as simple as possible.
Options exist to study in a group environment, gain personal feedback from a subject matter expert, reinforce core learning through interactive tutorials and use revision aids designed for quick and ready use, such as when commuting or travelling between client meetings.
| Core study text | A self-study text, covering the exam syllabus in a straightforward and user-friendly format. Includes, as an upgrade in some instances, ongoing updates to ensure your knowledge remains current. |
| Exam preparation exercises | Available for Diploma units, this allows you to complete five exam preparation exercises, set to exam standards and marked by an expert tutor, including individual feedback on your exam technique. It also provides an insight into how other candidates have performed on specific questions in previous exams, assisting effective preparation. |
| Revision courses | Delivered by experts, these are proven to boost the chances of exam success by as much as 60%. The choice ranges from single-day courses to intensive multiple-day workshops. |
| ed.LEARN | A series of web based interactive tutorial and assessment programmes to help you to gauge your progress, including a student discussion group and personal study planner.
|
| Key facts booklets | Comprehensive pocket-sized booklets summarising the key information from the core study text. Ideal for use while commuting. |
| Audio CDs | These summarise key information from the core study text and are ideal for use while driving between meetings. |
| Exam guides | A specimen or actual past exam paper with examiners’ comments on candidates’ performance, key points for inclusion in your answers and useful hints on how to pass the exam. |
The cost of completing the Diploma
We recognise the financial pressures on individual advisers and firms and, for this reason, we strive to keep our costs as low as is practical.
As this qualification has a modular framework, we do not require upfront payment of all fees. Instead, candidates may pay for learning materials as and when they are required and pay exam fees upon entry. This allows the cost to be spread over the full period during which the Diploma is completed.
Typically, an FPC-holder who is a member of the CII/Personal Finance Society could complete the Diploma for less than £1,200, with the cost paying for:
- 5 unit study texts with updates
- 5 exam entries
- 5 key facts booklets
- 5 exam guides/papers
Members of the CII/Personal Finance Society enjoy discounts on the cost of completing the Diploma. In the example shown a 14% saving on the non-member price would be made.
Join the Personal Finance Society
The RDR also contains a proposal regarding the need to raise levels of professionalism through adherence to published standards of conduct.
The Personal Finance Society (PFS), is dedicated to serving the professional interests of financial advisers and those in related roles, and in turn to ensuring consumers benefit from a genuinely professional financial advice market. This includes maintaining a Code of Ethics and Conduct to which all members subscribe – a linchpin of professionalism.
Membership of the PFS also offers a range of benefits that can assist you with your exam studies.
In addition to discounts on qualification study materials and exam entry, membership will give you access to a broad range of services that include online knowledge services, a complimentary magazine which contains indepth technical articles and an extensive CPD programme to help keep your knowledge up to date. And, on completion, you will be eligible to apply for professional designations reflecting your educational achievement.
A review of the 2006 CII examination results showed that PFS members were 15% more likely to pass their examinations than non-members.
Membership costs from only £12.50 a month when paying by Direct Debit.
Visit www.thepfs.org/join for further details and to join or call +44 (0)20 8530 0852.
Credit listing in respect of CII exams
This table details the credits awarded by the CII in respect of its most common financial services examinations.
For information on other units/qualifications not listed, please contact Customer Service.
| Unit title | Credit level |
|---|
| Certificate | Diploma | Advanced |
|---|
| Current qualifications/examinations |
|---|
| Advanced Diploma in Financial Planning |
| Units: AF1-AF5 | | | 30 per unit* |
| Diploma in Financial Planning |
| Units: J01-J07 | | 20 per unit | |
| Certificate in Financial Planning / Financial Administration |
| CF1 – UK financial services, regulation & ethics | 15 | | |
| CF2 – Investment and risk | 20 | 20** | |
| CF3 – Financial protection | 10 | | |
| CF4 – Retirement planning | 10 | | |
| CF5 – Integrated financial planning | 15 | | |
| CF6 – Mortgage advice | 20 | 20** | |
| CF8 – Long term care insurance | 15 | 15** | |
| ER1 – Equity release | 15 | | |
| FA1 – Life office administration | 10 | | |
| FA2 – Pensions administration | 10 | | |
| GR1 – Group risks (to be launched in 2008) | 10 | | |
| HR1 – Home reversion plans | 5 | | |
| Withdrawn qualifications/examinations*** |
|---|
| Advanced Financial Planning Certificate |
| Units: G10, G20, G30, G60, G70, G80, H15, H25, F10, F20, F30, F40, F50, L10, L20, L30, L40, L50 | | | 30 per unit |
| K10 - Retirement options | | | 20 |
| K20 - Pension investment options | | | 20 |
| Miscellaneous exams |
| MAQ - Mortgage advice qualification | | 20 | |
| SV1 - Savings and investment | | 20 | |
| Certificate in Financial Planning |
| CF7 - Lifetime mortgage activities | 15 | 15** | |
| CF9 - Pensions simplification | 10 | | |
| Financial Planning Certificate |
| Completed (1994 scheme - including unit FP3) | 50 | | |
| Completed (pre-1994 scheme - excluding unit FP3) | 32 | | |
| * | Advanced Diploma in Insurance units: 555, 556, 735, 790, 945, CITIP each provide 30 advanced credits towards the Advanced Diploma in Financial Planning when passed prior to 2008 and where candidates fulfilled the transitional rules of 2006. |
| ** | Credit value where exam passed prior to 2007. |
| *** | Due to the extent of syllabus overlap, certain combinations of units will result in only one award of credits. Full details can be found in in the Diploma/Advanced Diploma in Financial Planning brochure. |
