How does the Framework work in practice?
To see how the framework works in practice,
we’ve put together a few examples showing
how qualifications are relevant to different
roles in the industry. The framework is
sufficiently flexible and comprehensive to
satisfy the requirements and aspirations of
individuals from a diverse range of sectors
and roles.
These examples are illustrative and by no
means definitive.
In all cases the credits will count towards
further study for professional-level financial
planning qualifications for those choosing
to pursue their studies.
Example 1 – Certificate in Life and Pensions
Daniel, a pensions team leader, already holds the Certificate in Financial Administration. This gives him 25 credits towards completion of
the Certificate in Life and Pensions and meets the compulsory unit requirement.
| Unit code |
Unit title |
Credits |
| (CF1) |
UK financial services, regulation and ethics |
15 credits |
| (FA2) |
Pensions administration |
10 credits |
He then completes the following Certificate and Diploma units, focusing in on the available pensions related subjects to enhance his
technical knowledge and understanding.
| Unit code |
Unit title |
Credits |
| (CF2) |
Investment and risk |
20 credits |
| (CF4) |
Retirement Planning |
10 credits |
| (J04) |
Pension funding options |
20 credits (Diploma level) |
Certificate in Life and Pensions (minimum 60 credits required).
Daniel passes the 60 credit threshold required for completion of the Certificate. As a member of the CII, he is invited to apply to use the
designation Cert CII (Life and Pensions).
Example 2 – Diploma in Regulated Financial Planning
Sonia is a new industry entrant seeking to qualify as a financial adviser. She does not hold any existing relevant CII or non-CII
qualifications/exams. As required by the regulator, she selects to complete the Diploma in Regulated Financial Planning, a fully
RDR-compliant QCF approved Level 4 qualification.
She completes the required six units, R01–R06 inclusive, resulting in the award of the Diploma in Regulated Financial Planning and in turn
meeting the new RDR exam standards in full.
| Unit code |
Unit title |
Credits |
| (R01) |
Financial services,
regulation and ethics |
20 credits |
| (R02) |
Investment
principles and risk |
20 credits |
| (R03) |
Personal taxation |
10 credits |
| (R04) |
Pensions and
retirement planning |
10 credits |
| (R05) |
Financial
protection |
10 credits |
| (R06) |
Financial
planning practice |
30 credits |
Diploma in Regulated Financial Planning (100 credits, units R01–R06 compulsory).
As a member of the Personal Finance Society, she is entitled to use the designation DipPFS®.
She now has the option to build on these credits by working towards the Advanced Diploma in Financial Planning and, ultimately, Chartered
Financial Planner® status.
Example 3 – Diploma in Financial Planning
Rachel, a multi-tied adviser within a network, holds the Financial Planning Certificate (post-’94 three exam scheme). She has a total of 50
credits relating to her existing examinations.
Her credits are accumulated as follows:
| Unit code |
Unit title |
Credits |
| (FP1) |
Financial services and their regulation |
16 credits (Certificate level) |
| (FP2) |
Protection, savings and investment products |
16 credits (Certificate level) |
| (FP3) |
Identifying and satisfying client needs |
18 credits (Certificate level) |
To meet the RDR qualification requirements to hold a QCF approved Level 4 qualification by the end of 2012, she decides to complete the
existing Diploma in Financial Planning, which recognises her existing qualification in the form of credits counting towards completion.
She requires 90 credits to complete (including at least 80 at Diploma level or above), compared to the 100 credits required to complete the
new Diploma in Regulated Financial Planning. Rachel passes the following units:
| Unit code |
Unit title |
Credits |
| (R01) |
Financial services,
regulation and ethics |
20 credits |
| (R02) |
Investment
principles and risk |
20 credits |
| (R03) |
Personal taxation |
10 credits |
| (R04) |
Pensions and
retirement planning |
10 credits |
| (R06) |
Financial
planning practice |
30 credits |
Diploma in Financial Planning (minimum 140 credits required)
Rachel therefore meets the 140 credit requirement, including obtaining the required Diploma level credits, and completes the Diploma.
Importantly, the Diploma is what the FSA have termed a ‘transitional qualification’ in that holders will satisfy the RDR qualification requirements,
with any shortfall between the coverage of this qualification and the new exam standards to be met through qualification gap fill activity.
By selecting new Diploma ‘R0’ units she substantially reduces this qualification gap fill requirement since these meet the new exam
standards in full.
As a member of the Personal Finance Society, she is entitled to use the designation DipPFS®. Rachel will also have access to a comprehensive
qualification gap fill programme, including free and exclusive use of a diagnostic tool to identify any gaps, and free access to a range of
targeted solutions to address these gaps and satisfy any potential compliance obligations.
She also has the option to build on these credits by working towards the Advanced Diploma in Financial Planning and, ultimately, Chartered
Financial Planner® status.
Example 4 – Advanced Diploma in Financial Planning/Chartered Financial Planner
Michael, an IFA, holds the Financial Planning Certificate; Certificate in Financial Planning unit (CF2) Investment and risk (topping-up his
knowledge of a subject identified by the FSA, among others, as an area of weakness for many advisers); and the Diploma in Financial
Planning.
He is also a member of the Personal Finance Society (PFS) and uses the designation DipPFS®, reflecting his educational and
professional achievements.
He is keen to complete the Advanced Diploma in Financial Planning and achieve Chartered Financial Planner® status.
Michael has 150 credits from the examinations he already holds:
| Unit code |
Unit title |
Credits |
| (FP1) |
Financial services and their regulation |
16 credits (Certificate level) |
|
| (FP2) |
Protection, savings and investment products |
16 credits (Certificate level) |
| (FP3) |
Identifying and satisfying client needs |
18 credits (Certificate level) |
|
| (CF2) |
Investment and risk |
20 credits (Certificate level) |
| (J01) |
Personal tax |
20 credits (Diploma level) |
|
| (J02) |
Trusts |
20 credits (Diploma level) |
| (J04) |
Pension funding options |
20 credits (Diploma level) |
|
| (J05) |
Pension income options |
20 credits (Diploma level) |
|
To complete the Advanced Diploma he needs a further 140 credits, with a minimum of 120 at Advanced level including a pass in the
compulsory unit (AF5) Financial planning process. He now sits:
| Unit code |
Unit title |
Credits |
| (AF1) |
Personal tax and trust planning |
30 credits (Advanced level) |
|
| (AF3) |
Pension planning |
30 credits (Advanced level) |
| (AF4) |
Investment planning |
30 credits (Advanced level) |
|
| (AF5) |
Financial planning process |
30 credits (Advanced level) |
| (R02) |
Investment
principles and risk |
20 credits (Diploma Level) |
|
Advanced Diploma in Financial Planning (minimum 290 credits required)
Michael meets the 290 credit requirement, completing the Advanced Diploma, and is invited to become a Chartered Financial Planner®.
As a member of the PFS he is also entitled to use the designation APFS®.
As a holder of a ‘transitional qualification’ (both the Diploma and Advanced Diploma in Financial Planning are specified as such by the FSA),
Michael meets the RDR qualification requirements, subject to bridging the gap between this and the new FSA/FSSC exam standards by the
end of 2012.
By selecting a new RDR-complaint Diploma ‘R0’ unit, Michael has reduced his qualification gap fill requirement.
As a PFS member, Michael will have access to a comprehensive qualification gap fill programme, including free and exclusive use of a
diagnostic tool, to identify any gaps, and access to a free range of targeted solutions to address these gaps, and satisfy any potential
compliance obligations.
Michael would need a further 60 credits should he wish to progress to Fellowship of the PFS.
