The professional body has suggested the regulator should think again over the time scale for employees to attain an appropriate qualification.
The FAMR report proposes am increase by 18 months from two and a half years to four years.
The CISI, which has 40,000 members, including 2,000 from Financial Planning, after last year’s merger with the IFP, has released a statement in response to the publication this week.
It stated: “Whilst we are pleased to see the FCA endorse the value of qualifications, we are surprised that the time scale for employees to attain an appropriate qualification has been increased by 18 months from two and a half years to four years.
“The FCA needs to be careful not to send out mixed messages that may devalue qualifications.”
The FAMR report explained that problems with the current system had been identified by consultees during the research process.
It stated: “Collectively, stakeholders suggest issues with the existing regime are restricting firms’ ability to train a ‘pipeline’ of future advisers, as there is insufficient flexibility for individuals to develop and become qualified while working within a business.
“As one of the measures to help develop a simple and clear advice framework, the FCA should consult on modifying the time limits for employees to attain an appropriate qualification in the FCA’s existing Training and Competence sourcebook.
“This will give firms more flexibility to train a new generation of advisers by allowing employees to work for up to four years under supervision to obtain an appropriate qualification and experience.”
The panel said it believed that altering time limits to align with EU regulations from MiFID would strike an appropriate balance.
This would allow firms “greater flexibility, thereby allowing a new generation of advisers to develop their skills while working”, the panel said.
Their report added it would ensure that advisers “achieve an appropriate level of professionalism to provide suitable advice and engender trust with consumers”.
The CISI also called on the FCA to cut costs for advisory firms and welcomed the FAMR’s support for automated advice.
The CISI statement read: “Financial advice and planning costs to the consumer are expensive, not because the adviser is trying to maximise their profits, but because the regulatory cost and risks are too high.
“Therefore we applaud the FCA’s initiative to embrace technology and auto-advice models, which will have a role, but they are unlikely to replace dealing with a real person who can fully understand and empathise with clients’ needs, although we would also urge the regulator to consider reducing the regulatory burden in this specific area.”