The UK’s National Skills Academy for Financial Services has unveiled a new work-based qualification in line with more stringent mandatory qualification requirements coming in under the regulator’s Retail Distribution Review.

NSAFS developed the Diploma in Investment Planning, known as Experience Counts, with Corporate Training Partnerships, one of its training partners. It has been included in the FSA’s Consultation Paper CP 11/01 for final approval by 6 February.

Under the RDR, post-2012 advisors will have to hold a QCF Level 4 qualification – the equivalent of undergraduate level – while before only a Level 3 was required. The introduction of new higher mandatory qualifications has caused some consternation within the industry, with detractors arguing that it will force perfectly competent advisors back to the exam hall at great expense and that it could possibly prompt older advisors to sell their businesses. It can therefore be assumed that qualifications based on work-based assessment will prove a popular route to RDR compliance.

Once approved, the qualification will be awarded by Chartered Institute of Bankers in Scotland. Those looking to gain the diploma will have to score 75 per cent or more in an initial diagnostic assessment and will then be visited at their workplace by an assessor for an assessment lasting one to three days. The initial diagnostic costs £100, the first day of assessment £2,000 and each subsequent day £1,000.

“We know the great majority of existing advisors provide high quality advice to their clients day in, day out, but some may struggle to demonstrate this in a traditional, written examination. The Diploma in Investment Planning (work-based assessment) will help such advisors demonstrate their commitment to the new RDR standards, and their professional competence,” said Simon Thompson, chief executive of CIOBS.