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Introduction
When the FSA approved six new Accredited Bodies (ABs) a few months ago, we knew advisers were going to be well catered for with regards to the provision of Statements of Professional Standing. Following a further Consultation Paper (CP11/24) published by the FSA this week, two more ABs have joined the growing list of organisations preparing to provide Statements of Professional Standing to the industry.
But is choosing an AB as simple as it might seem? As we know from our clients, the major advisory firms are currently talking to a number of ABs and weighing up the costs and benefits of using each one. But what about those individuals who do not want to take their employer's lead or operate on a self employed basis via a small firm or network? How can they identify the most appropriate AB for them, and where should they start?
Different ABs offer different services and not all are prepared to offer an SPS to a non member of their organisation. To cut through the confusion, we have done some research on the various ABs and the services they intend to offer. This is laid out below and we hope it makes your search for an appropriate AB somewhat easier.
Who are the Accrediting Bodies?
As mentioned earlier, there were six ABs approved in the first tranche:
CFA Society of the UK
Chartered Institute for Securities and Investments
Chartered Insurance Institute
Chartered Banker Institute
Institute of Financial Planning
Institute of Financial Services
In the most recent CP, the FSA identified a further two organisations that have applied to become an AB:
Institute of Chartered Accountants in England and Wales
Pensions Management Institute
So, with a number of ABs currently available, it is a matter of understanding the cost implications of each option and if the SPS service is wrapped up in a wider membership offering.
When will you be able to obtain an SPS?
Well, the simple answer to that is when the Accredited Bodies have the necessary systems and controls in place. Based on recent research, here is the up to date picture of who will be issuing SPSs, from what date and to whom.
Accrediting Bodies
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Organisation
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Members
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Non-Members
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Cost
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From When
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| CFA Society of the UK |
Will issue SPS to members on application |
WILL NOT provide this service to non members. |
A small administration fee may be charged. TBC |
Early 2012 |
| Chartered Institute for Securities & Investments |
Will issue SPS to members on application. SPS must be applied for within 2 months of the end of their CISI CPD year |
WILL NOT provide this service to non-members, however will supply to employees of corporate supporters |
£35 for personal applications prior to 31/05/2012 £45 thereafter. Following year renewal fees will reduce to £20 or £30 dependent on whether SPS is paid for with membership application. See CISI website [link] for full details and costs for corporate supporters |
Oct 2011 |
| Chartered Insurance Institute |
Will issue SPS to members on application. SPS will run parallel to the individuals membership period |
Will NOT provide this service to non-members |
Included within current cost of membership |
Oct 2011 |
| Chartered Banker Institute |
Will issue SPS to members on application. SPS will run parallel to the individuals membership period |
Will provide a VERIFICATION ONLY SERVICE TO EMPLOYERS WITH LARGE NUMBERS OF STAFF, but not to individuals |
1) Included within current cost of membership
2) For the verification service for large firms the costs will be agreed with the employer based on numbers involved
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Feb 2012 |
| Institute of Financial Planning |
Will issue SPS to members on application |
Will NOT provide this service to non-members |
Included within current cost of membership |
Feb 2012 |
| Institute of Financial Services |
Will issue SPS to members on application |
WILL provide this service to non-members |
£70 for non members and £45 for members |
Jan 2012 (to be confirmed) |
Proposed Accrediting Bodies
The current status of the two ABs (ICAEW and PMI) ) who have pending applications is as follows:
"We have assessed each application received against the criteria in TC Appendix 6G. On the basis of that assessment we intend to confer accredited body status on the applicants and we consult here on including them in our Handbook. " CP 11/24.
As you can see, with six ABs confirmed and two more likely to be so, there is a wide range of options for both firms and individuals.
What Next?
The key question when selecting an AB is, I believe, Do I want to become a member of a professional body to obtain my SPS or not? That then leads into another question: If I become a member, what's in it for me? And that is a fair question to ask of the ABs you are considering.
Looking at the membership options, all ABs will be offering a level of CPD to their members via on-line tools, and so individuals need to decide what they are looking for in this respect. Do they obtain their CPD via their employer or network? Or do they prefer to source and undertake their own CPD, delivered via a preferred supplier who has demonstrated their credentials to provide appropriate and relevant CPD?
These are questions that need to be considered before a decision is reached.
For more information or to discuss your CPD or other RDR options please click on the following links to see what qualifications, gap fill and CPD support we can offer, email or call one of our RDR experts on 020 3170 5779.
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