The exam, which will sit within the CISI level 4 Investment Advice Diploma, is designed to provide a direct study pathway to the global Certified Financial PlannerTM certification. The first tests are set to be taken in August.
The CISI took over from the IFP late last year as the licensing authority for the CFPTM marks in the UK, through agreement with global body FPSB. This followed the merger of the CISI and IFP.
Lydia Romero, the CISI global director of learning, is responsible for leading, developing and delivering products and services in the areas of qualifications, membership and policy, CPD and networking and learning resources.
She told sister publication Financial Planner magazine: “This is aimed at prospective Financial Planners and Paraplanners as well as wealth managers who wish to develop their knowledge and understanding of Financial Planning and advice. We estimate that we will have about 150-200 candidates in the first year.”
She said: “The aim is that the exam will map to the FCA’s examination standards for this area so when combined with the level 4 UK Regulation and Professional Integrity and Investment, Risk and Taxation exams, the candidate will hold an appropriate qualification on the FCA’s appropriate qualification tables for Advising on Retail Investment Products and Friendly Society Tax-Exempt Policies (FCA Activities 4 & 6).
“Those candidates achieving the new IAD pathway (Financial Planning & Advice) will not only meet the eligibility requirement for the Diploma in Financial Planning - of holding an RDR compliant qualification - which leads to the CFPTM certification.
“They will also have already completed the first unit of the Diploma and have only the final financial plan assessment to complete.”
Asked how this will feed into the larger picture of the CISI developing Financial planning further, she said: “The new pension freedoms have highlighted the increasing need for responsible, qualified Financial Planning advice.
“As a professional body focussed on education, the CISI is keen to support the growth of the Financial Planning sector with relevant qualifications as well as continuing professional development.
“We have developed a suite of online modules – or professional refreshers - covering various aspects of Financial Planning which we add to on a regular basis.”
The exam will be available to take by computer-based testing.
Ms Romero explained what other reforms and changes to exams the CISI is considering undertaking.
She said: “The Financial Planning pathway culminates with the level 6 Diploma in Financial Planning and the CFPTMcertification. The CFPTM marks is a highly regarded designation. We recognise the value the industry places on the CFPTM certification and have listened to the feedback on the case study assessment.
“There are, we feel, potential revisions which would allow more aspiring CFPTM professionals to strive to achieve the certification and improve the first time pass rates. Our very experienced qualifications team are exploring this with the input of experts from the profession.”
The technical elements covered within the Financial Planning and Advice Exam include financial protection, pensions and retirement planning and Financial Planning skills.
Read more about the new exam here.