FSA Policy Statement - SPS
This policy statement confirmed that retail investment advisers will need to hold a Statement of Professional Standing (SPS) if they want to give independent or restricted advice after January 2013. The FSA believe that this statement will provide customers with evidence that the adviser subscribes to a code of ethics, is qualified and has kept their knowledge up to date. The SPS will be issued by bodies accredited by the FSA which satisfy the following criteria; � They act in the public interest and further the development of the profession � They carry out effective verification services � They have appropriate controls in place and provide evidence to the FSA of continuing effectiveness; and � The cooperate with the FSA on an ongoing basis The FSA states that the accredited bodies must check that all of the advisers who use their services hold an appropriate qualification, including any gap fill. The accredited body will be able to rely on the previous confirmation from another accredited body that an appropriate qualification is held (including qualification gap fill). There is also a requirement that all advisers should complete a minimum of 35 hours of Continuous Professional Development (CPD) each year, of which at least 21 hours be structured. CPD activity could include courses, lectures, seminars or workshops. All the CPD activity has to show demonstrable change to improve advisers� skills and knowledge. In response to this next month we will issue an updated CPD plan template to help achieve this. New Entrants: New advisers joining the industry after 1st January 2011 will have 30 months to obtain Level 4 qualification. Firms recruiting new adviser in 2011 will need to establish a clear plan for advisers to attain the Level 4 qualification.
