New data* from Skandia shows that a massive 78% of advisers could reach chartered status in the future.
Although only 18% of advisers surveyed are currently qualified to chartered status, 29% are already studying towards it, with a further 31% thinking about studying towards it. If both these latter groups of advisers pass the exams, the number of advisers with chartered status will increase three fold, from 18% to 78%. Interestingly, just 22% of advisers do not have any intention of studying towards chartered status.
The survey also revealed that 86% of advisers believe chartered status is of value, with 45% of advisers considering it to be important or extremely important. This ties in with the recent consumer research carried out by Skandia, which found that 86% of people considered chartered status to be attractive, with 49% considering it extremely attractive. The research also showed that two thirds (67%) of people would prefer a restricted adviser with chartered status rather than an independent adviser without chartered status, showing that the expertise of the adviser is at least as important as his or her independence.
At a time when advisers are reshaping their business model in preparation for RDR, making sure they position themselves as highly qualified experts is key. Post RDR consumers will need to pay for financial advice, in the same way that they currently pay solicitors and accountants. Being seen as an expert will undoubtedly make this fee easier to accept, which makes it even more important that advisers aim to reach this status.
Nick Dixon, Skandia's marketing director, comments:
"The data is a clear sign of just how important it is going to be for advisers to achieve chartered status. The more advisers who reach chartered status, the greater the pressure will be on the remaining adviser population to also reach that benchmark. Consumers will ultimately decide the value placed on chartered status, but early signs from the research show just how key this is going to be in future."
Steve Jenkins, director of financial services and insurance markets at the Chartered Insurance Institute (CII), comments:
"As standards within the profession continue to rise, standing out from the crowd has never been so necessary. Financial planners will be increasingly looking for ways to differentiate themselves and their firms, and we believe that Chartered status is one of the best ways to do this.
"Skandia's research also indicates that advisers value Chartered status highly, particularly the significant commitment to professional standards that it signals to the customer."
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