As a key element of the Financial Services Authority's Retail Distribution Review (RDR) is to enhance professionalism across all distribution channels it's worth exploring whether the community of Certified Financial Planner^CM professionals has the ability, desire and structure to enable a new profession to emerge. The FSA is already encouraging this paradigm shift therefore this article asks whether CFP^CM professionals are ready to be recognised as professionals.

What are the hallmarks of professional advice? How will the consumer discriminate between advice channels and crucially will the RDR facilitate the emergence a new profession?

The RDR proposals aims are to 'raise standards of professionalism' through the 'enforcement of professional standards... by supervision' (FSA, 2010). By highlighting the need for professionalism the FSA appear to be suggesting that a model of professional standards exists. Yet no template for professional standards is offered by the FSA. Whether the standards are identifiable and measurable appears in doubt when the FSA maintains that professionalism will be enhanced through increasing educational requirements, the role of professional bodies, together with abolishing commission, rather than through setting clear benchmarks for professionalism.

Challenging the regulatory approach Haug & Sussman, (1969) argue that professionalism should incorporate an exclusive body of scientific knowledge, service awareness and autonomy of work none of which surface on the road to professionalism envisaged by the FSA. It would appear that the FSA wishes to retain control over advice channels and restrict the emergency of meaningful professional bodies. This would seem to contradict the professionalism aims of RDR as the 'surest path' to professionalism has usually embraced the growth of a relevant professional body (Millerson, 1964:47). The FSA is anticipating that a new level of professionalism will emerge from the wreckage of financial scandals and believes the RDR proposals will set new standards for advice. The issue of professionalism is clearly central to many of the proposed changes hence evaluating the nature of professionalism and how it can be developed is now explored.

Defining professionalism
How to define a profession has been the subject of considerable academic interest. One attempt at a definition states a profession to be 'an occupation that involves training and a formal qualification' and professionalism as 'the competence or skill expected of a professional' (Oxford English Dictionary, 2005). Confusingly, the same dictionary also states that an occupation is 'a job or profession'. Delineation between a profession and an occupation is marked by clear attempts at 'market closure' when professions orchestrate controlling access to work and certification (Evetts, 2003:397). Clarke (1999:60) contributes to the debate by describing a profession as 'an occupational group which achieves market closure and autonomy on the basis of a successful claim to expertise and the delivery of a service based upon it in an area of vital importance'.

While noting knowledge is important Watson (2002:94) argued that professionalism and the professions are more notions of a creative language being both 'slippery and ambiguous'. He states that a more acceptable term for a profession may be 'expert occupation or 'knowledge based occupation' (2002:104), a notion supported by Evetts (2003), when reflecting on the ambiguity of the professional concept. Controversially Watson (2002:102) reflects that the professions are more a notion conceived as an 'altruistic... brilliant invention' avoiding normal competitive requirements by creating monopolistic advantages.


Challenging an omnipotent regulatory regime Cruess et al, (2004:75) argue a 'right to considerable autonomy' and the 'privilege of self-regulation'. Indeed Morrell (2003) goes further and insists that professionals should be independent of state controls. This view is emphatically endorsed by Klass (1961) who notes that a profession cannot operate if its organisation is controlled by government. The increasing regulatory controls proposed by RDR may result in financial advisers taking on some of the characteristics of employees and that any professional autonomy may be compromised as a result of commercial pressures (Davis, 1969). As the RDR is unlikely to encourage autonomy this does not augur well for an emerging profession.
Indeed Rothblatt (1995:204) suggested that it is unusual for the agencies of the state to allow the 'moral authority' of professions to grow.

Professionals are characterised by many researchers (Flexner 1915, Cogan, 1955, Klass, 1961) as requiring a period of academic study followed by professional training leading to a professional exam within a recognised professional body. This is a view endorsed by Clarke (1999) who argues that intensive training and competence are pre-requisites to professionalism. Contrary to this view, Eraut (1994) suggests that a period of internship or pupillage leads to the development of a craft culminating in evidence of achievement via a logbook or portfolio. Advanced learning and intellectual independence are also identified by Broadbent et al, (1999) who further claim they legitimise professional relationships with society, as do Gaskell & Ashton (2008), when claiming that professional knowledge is legitimised by the state through the conduit of professional associations.

A confusion of terminology permeates most literature when dealing with financial services as even industry participants cannot agree whether to describe financial advice as a profession, industry, occupation, trade or business. The apparent indifference to terminology is not helpful to an emerging advice profession and is summed up elegantly by Millerson (1964:1) as 'semantic confusion'.

In a letter to the Treasury the FSA Chief Executive Hector Sants (2010) suggested 'common professional standards' are required to be aligned with the legal and accountancy profession. However Sants does not define what the standards are. Similarly Goddard (2011) invites members of the Personal Finance Society (PFS) to develop the traits of other professions but no yardstick is offered.


Developing a planning profession
Clarke (1999) suggests that the establishment of a profession requires kindred spirits to come together and form interest groups to promote their ambitions. He also argues that often change requires an industry leader to emerge who is willing to bravely argue for radical change in attitudes and competences thus driving out disingenuous participants. As the community of Certified Financial Planner professionals is largely populated by firms of three or fewer regulated individuals (FSA, 2010), understandably questions may be raised over the capacity of such firms to offer a professional service. Without a definition of what constitutes professional advice it is difficult to measure the professional effectiveness of each firm.
The credibility of Financial Planners may be disputed given the absence of a definition for professional advice. This is compounded by the reluctance of both the FSA and the various established professional bodies to identify with independent advice despite the support of consumer interest groups for independent advice over other advice channels (Which?, 2010).

Writers argue that it is the competition between trade bodies as well as the regulatory process that has negatively impacted on efforts to increase professionalism (Gaskell & Ashton, 2008). This view is supported by Clarke (1999) who stresses the importance of having one professional body. The present unwillingness of the various trade bodies to identify with independent or restricted advice as the preferred channel may also be stifling progression toward professionalism. In the absence of an exclusive professional body for all Financial Planners and financial advisers the formation of an interdisciplinary profession (Schuchardt et al, 2007) remains a possibility, particularly as many lawyers and accountants already have joint ventures with financial advisers.

Proposing entry qualifications at a lower level than many Financial Planners already hold raises questions over how the Statement of Professional Standing (SPS) document will enlighten the consumer as to the competences of an adviser? Perhaps consumers would be better served understanding planner qualifications by reference to the time and number of exams required to reach status as a CFP^CM professional or Chartered Financial Planner. Contextualising the relevant professional standards and current competences of individual advisers could help consumers to select an appropriate adviser for them. This would be particularly helpful given the eclectic nature of the various examining boards. Eventually such disclosure could condition advisers and consumers that a qualification at CFP^CM professional of Chartered Financial Planner level is desirable.

As Professor Ennew from the Nottingham University Business School has noted in her work on the retail markets that trust is essential to the development and maintenance of enduring and productive customer relationships and this in turn depends on assurances around competence and capability. The credibility of the UK's financial advisers will continue to be questioned by a sceptical public unless the sector can provide assurances similar to those offered by professions such as law and accountancy over their credibility and qualifications.