How does the Framework work in practice?

To see how the framework works in practice, we’ve put together a few examples showing how qualifications are relevant to different roles in the industry. The framework is sufficiently flexible and comprehensive to satisfy the requirements and aspirations of individuals from a diverse range of sectors and roles.

These examples are illustrative and by no means definitive.

In all cases the credits will count towards further study for professional-level financial planning qualifications for those choosing to pursue their studies.

Example 1 – Certificate in Life and Pensions

Daniel, a pensions team leader, already holds the Award in Financial Administration. This gives him 25 credits towards completion of the Certificate in Life and Pensions and meets the compulsory unit requirement.

Unit code	Unit title	Credits
(CF1)	UK financial services, regulation and ethics	15 credits
(FA2)	Pensions administration	10 credits

He then completes the following Certificate and Diploma units, focusing in on the available pensions related subjects to enhance his technical knowledge and understanding.

Unit code	Unit title	Credits
(CF2)	Investment and risk	20 credits
(CF4)	Retirement Planning	10 credits
(R04)	Pension and retirement planning.	20 credits (Diploma level)

Certificate in Life and Pensions (minimum 60 credits required).

Daniel passes the 60 credit threshold required for completion of the Certificate. As a member of the CII, he is invited to apply to use the designation Cert CII (Life and Pensions).

Example 2 – Certificate in Paraplanning

Edward, a Paraplanner for a small IFA firm, holds unit (CF1) UK financial services, regulation and ethics.

Unit code	Unit title	Credits
(CF1)	UK financial services, regulation and ethics	15 credits

Edward is keen to enhance his paraplanning skills and technical knowledge in keys advisory areas, and therefore decides to complete the Certificate in Paraplanning.

As CF1 is treated as equivalent to R01 for this qualification, Edward already holds one of the four units required to complete. He therefore only needs to pass three of the four compulsory units.

(R02)	Investment principles and risk	20 Diploma credits
(R03)	Personal taxation	10 Diploma credits
(J09)	Paraplanning	30 Diploma credits
Certificate in Paraplanning (80 credits, units R01–R03, J09 compulsory)

Should Edward decide in future to become an authorised financial planner, he has the option to build upon these credits, and, by passing four more units: (R01) Financial services, regulation and ethics, (R04) Pensions and retirement planning, (R05) Financial protection and (R06) Financial planning practice, complete the Diploma in Regulated Financial Planning.

Example 3 – Diploma in Regulated Financial Planning

Sonia is a new industry entrant seeking to qualify as a financial adviser. As she does not hold any existing relevant CII or non-CII qualifications/exams, she selects to complete the Diploma in Regulated Financial Planning, a fully RDR-compliant QCF approved Level 4 qualification. She completes the required six units, R01–R06 inclusive, resulting in the award of the Diploma in Regulated Financial Planning and in turn meeting the new RDR exam standards in full.

Unit code	Unit title	Credits
(R01)	Financial services, regulation and ethics	20 credits
(R02)	Investment principles and risk	20 credits
(R03)	Personal taxation	10 credits
(R04)	Pensions and retirement planning	10 credits
(R05)	Financial protection	10 credits
(R06)	Financial planning practice	30 credits

Diploma in Regulated Financial Planning (100 credits, units R01–R06 compulsory).

As a member of the Personal Finance Society, she is entitled to use the designation DipPFS® and apply for a free CII Statement of Professional Standing (SPS), which the FSA require investment advisers to hold from 01 January 2013.

Example 4 – Diploma in Financial Planning

Rachel, a multi-tied adviser within a network, holds the Financial Planning Certificate (post-’94 three exam scheme). She has a total of 50 credits relating to her existing examinations.

Her credits are accumulated as follows:

Unit code	Unit title	Credits
(FP1)	Financial services and their regulation	16 credits (Certificate level)
(FP2)	Protection, savings and investment products	16 credits (Certificate level)
(FP3)	Identifying and satisfying client needs	18 credits (Certificate level)

To meet the RDR qualification requirements to hold a QCF approved Level 4 qualification by the end of 2012, she decides to complete the existing Diploma in Financial Planning, which recognises her existing qualification in the form of credits counting towards completion.

She requires 90 credits to complete (including at least 80 at Diploma level or above), compared to the 100 credits required to complete the new Diploma in Regulated Financial Planning. Rachel passes the following units:

Unit code	Unit title	Credits
(R01)	Financial services, regulation and ethics	20 credits
(R02)	Investment principles and risk	20 credits
(R03)	Personal taxation	10 credits
(R04)	Pensions and retirement planning	10 credits
(R06)	Financial planning practice	30 credits

Diploma in Financial Planning (minimum 140 credits required)

Rachel therefore meets the 140 credit requirement, including obtaining the required Diploma level credits, and completes the Diploma. Importantly, the Diploma is what the FSA have termed a ‘transitional qualification’ in that holders will satisfy the RDR qualification requirements, with any shortfall between the coverage of this qualification and the new exam standards to be met through qualification gap fill activity.

By selecting new Diploma ‘R0’ units she substantially reduces this qualification gap fill requirement since these meet the new exam standards in full. As a member of the Personal Finance Society, she is entitled to use the designation DipPFS®. Membership also gives Rachel access to a free comprehensive qualification gap fill programme to help satisfy any potential compliance obligations. She can also apply for a free CII Statement of Professional Standing (SPS), which the FSA require investment advisers to hold from 01 January 2013.

She also has the option to build on these credits by working towards the Advanced Diploma in Financial Planning and, ultimately, Chartered Financial Planner® status.

Example 5 – Advanced Diploma in Financial Planning/Chartered Financial Planner

Michael, an IFA, holds the Financial Planning Certificate; Certificate in Financial Planning unit (CF2) Investment and risk and the Diploma in Financial Planning.

He is also a member of the Personal Finance Society (PFS) and uses the designation DipPFS®, reflecting his educational and professional achievements. He is keen to complete the Advanced Diploma in Financial Planning and achieve Chartered Financial Planner® status.

Michael has 150 credits from the examinations he already holds:

Unit code	Unit title	Credits
(FP1)	Financial services and their regulation	16 credits (Certificate level)
(FP2)	Protection, savings and investment products	16 credits (Certificate level)
(FP3)	Identifying and satisfying client needs	18 credits (Certificate level)
(CF2)	Investment and risk	20 credits (Certificate level)
(J01)	Personal tax	20 credits (Diploma level)
(J02)	Trusts	20 credits (Diploma level)
(J04)	Pension funding options	20 credits (Diploma level)
(J05)	Pension income options	20 credits (Diploma level)

To complete the Advanced Diploma he needs a further 140 credits, with a minimum of 120 at Advanced level including a pass in the compulsory unit (AF5) Financial planning process. He now sits:

Unit code	Unit title	Credits
(AF1)	Personal tax and trust planning	30 credits (Advanced level)
(AF3)	Pension planning	30 credits (Advanced level)
(AF4)	Investment planning	30 credits (Advanced level)
(AF5)	Financial planning process	30 credits (Advanced level)
(R02)	Investment principles and risk	20 credits (Diploma Level)

Advanced Diploma in Financial Planning (minimum 290 credits required)

Michael meets the 290 credit requirement, completing the Advanced Diploma, and is invited to become a Chartered Financial Planner®. As a member of the PFS he is also entitled to use the designation APFS®.

As a holder of a ‘transitional qualification’ (both the Diploma and Advanced Diploma in Financial Planning are specified as such by the FSA), Michael meets the RDR qualification requirements, subject to bridging the gap between this and the new FSA/FSSC exam standards by the end of 2012.

By selecting a new RDR-complaint Diploma ‘R0’ unit, Michael has reduced his qualification gap fill requirement.

Membership gives Michael access to a free comprehensive qualification gap fill programme to help satisfy any potential compliance obligations. He can also apply for a free CII Statement of Professional Standing (SPS), which the FSA require investment advisers to hold from 01 January 2013.

Michael would need a further 60 credits should he wish to progress to Fellowship of the PFS.

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