The CFA Society of the UK is developing a new investment management qualification which is compliant with minimum requirements coming in under the regulator’s Retail Distribution Review.

As part of the RDR, a package of reforms aimed at driving up standards of investment advice, the Financial Services Authority proposes that after the end of 2012 advisors must be qualified at QCF level four – the equivalent of the first year of a degree.

In response the CFA Society of the UK is combining an updated version of its Investment Management Certificate and the first level of the CFA programme to produce a new level four qualification that is expected to become available at the start of September.

The current IMC, which is a level three qualification at present, will be enhanced with the addition of the RDR core standards, such as UK regulation, taxation and UK-specific product knowledge. The first level of the CFA programme, meanwhile, covers specialist standards on securities and derivatives.

Those who already hold the current IMC will be able to “top up” their knowledge and satisfy the new qualification requirements by completing the first level of the CFA programme.

The Financial Services Skills Council has yet to sign off on the new qualification, but Peter Watkins, director of education at CFA UK, has said that he is confident of its securing approval.

It is expected that the major examination boards will have issued their frameworks for the new minimum qualification by the third quarter of this year.