Types of professional qualifications

The range of professional qualifications in financial services can appear to be confusing. Examinations are provided by a number of examining bodies, and often sound very similar.  

The minimum level of qualification which advisers initially need to have achieved are: 

  • Certificate in Financial Planning (or its predecessor the Financial Planning Certificate/ FPC)  OR 
  • Certificate for Financial Advisers (CeFA) to gain authorisation to give advice to clients.

These are the absolute minimum qualifications required and advisers qualified to this level will use the designation CertPFS or CeFA after their name. 

Many advisers and planners will have more advanced qualifications, such as: 

  • CERTIFIED FINANCIAL PLANNERCM certification (IFP)
  • Diploma in Financial Planning (DipPFS), (CII)
  • Associateship of the PFS (APFS) or  (CII)
  • Chartered Financial Planner status (CII)

These indicate that they have passed a series of examinations set by organisations such as IFP or the Chartered Insurance Institute (CII) on topics like taxation, investments and pensions. 

The CERTIFIED FINANCIAL PLANNERCM certification is an advanced qualification

 Internationally recognised, CFPCM certification is awarded to individuals who have already proven their technical competence by passing appropriate examinations to the level of DipPFS or equivalent. They are then tested specifically on their Financial Planning skills to become CFPCM professionals. In the UK, the IFP is the affiliate of the Financial Planning Standards Board (FPSB) and responsible for the assessing and the certification of CFPCM professionals. 

Other organisations such as the Securities and Investments Institute (SII) and Chartered Institute of Bankers in Scotland, offer appropriate qualifications for financial advisers however these tend to be less commonly held.

 

Check if your adviser is a member of a professional body

Many financial advisers and planners are members of a professional body. This ensures that they adhere to a code of practice and ethics, so asking potential advisers whether they belong to such a body should also be important.  

 

For more information about the differences between certain qualifications, have a look at this guide to see a breakdown.