One of the frequent adviser questions to the AIC is whether they have FSA permission to recommend investment companies. This is particularly relevant as the countdown to December 31 gets closer and advisers will need to demonstrate that they have considered investment companies alongside open-ended funds.
Jacqueline Lockie, Training Manager, Association of Investment Companies (AIC) puts the record straight, as well as giving some last minute tips for those advisers still looking to become RDR compliant.
She said: "The FSA permissions that most advisers already have for open-ended funds also allow them to advise on investment companies. Advisers just need to check their detailed permissions. In the securities knowledge requirements there is only one part which specifically covers a requirement for closed-ended funds, and this relates to the requirement to "demonstrate an ability to analyse the characteristics, features, behaviours and risks of securities" including open and closed-ended funds. These aspects are actually covered to the required ‘analyse' level 4 in the AIC's existing online training.
"If advisers require gap-fill for all listed securities (not just closed-ended funds) then I would recommend the Chartered Institute of Securities and Investment (CISI) as the best place to go. They have lots of gap-fill courses which will give advisers the required gap-fill modules to advise and deal on all listed securities. Depending on specific gaps, advisers may find it beneficial to sit the CISI Private Client Advice and Investment exam."
Top tips to becoming RDR compliant:
1. Check your detailed permissions with the FSA.
2. Decide if you wish to advise and deal in listed securities other than investment companies. If so, opt for the securities specialism and then gap-fill with the CISI and consider the PCAIM exam.
3. If you do not intend to deal and advise on general securities then just complete the standard gap-fill without the specialism.
AIC Training
The AIC has been running free online accredited training for advisers as part of a programme of education in the run up to RDR. Written and presented by Jacqueline Lockie, sessions are based on the FSA/FSP syllabus and provide investment company training to level four, as required post 31 December 2012. These sessions have gained accreditation from the Institute of Financial Planning and Chartered Insurance Institute and the AIC has been approved as an accredited training provider by the CISI.
|
