The new tests are not mandatory unless the FCA decides to use it for supervision reasons against specific advisers.
The two bodies said the change was “part of the FCA’s drive to raise the standards and competence of financial advisers.”
A joint statement read: “We believe that advisers having a good level of knowledge is the foundation to giving sound financial advice.
“This is particularly the case with the more technical aspects of financial advice.
“The level 4 Diploma became the standard when the Retail Distribution Review came into force at the start of 2013.
“Advisers complete a minimum of 35 hours continuous professional development each year with the aim of maintaining their knowledge.
“Not all firms test their advisers’ knowledge yearly as part of their Statement of Professional Standing, with many advisers never retesting.
“The objective of the re-evaluation is to identify areas of strength and weakness in technical knowledge and its application that underpins suitable financial advice.”
The new test will have 100 questions that span the CII's other advice exams.
The CII said questions would be “prioritised by the potential for impact on the suitability of advice.”
Advisers will be able to book the test, via the CII’s website, from 17 September.
The joint statement added: “We will encourage firms to use it and we may also use it as a supervisory tool if we think it is appropriate to ask firms to re-test specific advisers.”