Chartered status may seem a fair way off when you are starting out in financial advice. It requires advanced qualifications beyond the Level 4 diploma, plus a certain amount of industry experience.
But understanding the options for longer-term progression can be useful, even at the early stages of your career.
“While chartered status may not be on the minds of those early in their career as a financial adviser, pursuing it signals a commitment to the highest standards of professionalism, governance and ethical leadership,” says Kirsty McManus, director of personal development services at the Institute of Directors.
My employer preferred the CII route and that definitely played a part in my decision
“We see chartership not just as a qualification but as a long-term investment in one’s credibility and career trajectory.”
But there are different routes to chartered status, with the main professional bodies each having their own way of doing things. So, what determines whether an adviser qualifies through the Chartered Insurance Institute (CII), the London Institute of Banking & Finance (LIBF) or the Chartered Institute for Securities & Investment (CISI)?
The options
A quick search on the internet will give you a rough idea of the differences between advanced qualifications available through the main professional bodies. These differences do not mean that one is ‘better’ than another but rather that different options suit different learning styles and career aspirations.
The CII’s Advanced Diploma in Financial Planning is traditionally favoured by the financial advice profession and is known for its deep focus on technical knowledge. However, with a requirement to have at least five years’ industry experience before applying for chartered status, this route may take longer than others.
The key is to choose a body that supports your ambitions and learning style
Timescale can be a key consideration for some people in the profession. Second careerists with a family to support, for example, may prefer a fast route to chartered status so they can get their career back on track.
The LIBF’s Advanced Diploma in Financial Advice may suit these needs. It focuses on the practical application of technical knowledge and, at three years, the industry experience requirement for chartered status is shorter than that of the CII.
Finally, the CISI offers the Level 7 Diploma in Advanced Financial Planning, leading to certified financial planner status rather than chartered. The CISI also offers the chartered wealth manager qualification for those in the investment/wealth management market.
The right fit
Advisers say that the best route depends on the kind of adviser you want to be and the type of work you do.
“Some people prefer a more technical or investment-focused route, while others value a broader financial planning pathway,” says Tideway Wealth chartered wealth manager Harry Donoghue.
“The key is to choose a body that supports your ambitions and learning style.”
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It took Donoghue around three years of study to become chartered with the CII earlier this year.
“The term ‘chartered’ appealed to me because it’s recognised across many professions as a mark of expertise and integrity,” he says. “It represents a higher level of trust and credibility. I think clients naturally respond to that.”
If you’re more investment focused, the CISI has a stronger technical side, particularly around markets and portfolio management
The CII felt to Donoghue like the natural choice for financial planning, particularly as it was the body he had studied with at Level 4.
“Once I had started with the CII, it made sense to continue on that route because its chartered pathway builds naturally from the diploma level,” he says. “It’s well known across the profession and most firms recognise, and prefer, its qualifications.”
Employers’ views
Employers’ views do carry a lot of weight in this respect. Firms that want to obtain or retain corporate chartered status with the CII have to meet certain requirements, such as at least half of their advisers holding individual chartered status. That can influence which professional body their advisers study with.
You can study for advanced qualifications with a different organisation from the one you qualified with at Level 4, because each body permits exemptions for study units under ‘recognition of prior learning’. However, because the organisations all differ in their approach, the units studied with one will not be an exact match with those of another.
We see chartership not just as a qualification but as a long-term investment in one’s credibility and career trajectory
The CII, for example, may require someone with a Level 4 qualification gained elsewhere to sit some of its own units before progressing further.
By sticking with the same professional body, Donoghue avoided this.
“My employer at the time preferred the CII route and that definitely played a part in my decision,” he says. “It was the qualification most people in the firm were working towards, so it felt like the logical path to take.”
Donoghue suggests that those at an early stage in their career investigate how recognised a qualification is within the areas they want to work in, as well as how relevant its syllabus is to what they do, and what support they will receive while studying.
“If you’re more investment focused, the CISI has a stronger technical side, particularly around markets and portfolio management,” he says. “It tends to suit people working in investment or discretionary roles.”
Amanda Newman Smith is features writer for Money Marketing
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