Given the continuing move to higher level qualifications in the financial advisory sector was it simply a matter of time, so the questioner asked, before mortgage advisers were going to need a level four – rather than three – qualification in order to offer advice?
The FCA response was rather emphatic – they said they have no plans to ask mortgage advisers to make this move up the qualification curve and, in effect, existing advisers are not going to need to get their ‘mortgage exam heads’ on again as a result of a regulatory request.
I have to confess that I was slightly surprised by the tone of the response as previously my impression was that regulators were working towards a rise in professional standards for all those involved in financial services.
Whilst I’m certainly not advocating a mandatory rise in qualifications above the existing level, surely it will only be a matter of time before mortgage advisers are asked to go beyond CeMAP? Or put it this way, I wouldn’t bet against it.
Having talked to many lenders on the matter of industry standards (and providers too) there is a common (if not openly publicised) view that advisers need to continually show their ongoing competence and that a move to level four, or even a higher standard, would be one way of achieving this.
Indeed, from a compliance and client peace of mind view there appears to be no downside to an adviser showing both their ongoing commitment to the profession and that they are highly skilled and competent to carry out a changing job.
Of course there is absolutely nothing stopping advisers from treading this path now. The Institute of Financial Services already offers a diploma in mortgage advice and practice which is a level four qualification designed for those who want to show increased skills and knowledge.
Clearly this is a step above the basic CeMAP (or equivalent) qualification and could be used as a key differentiator in a marketplace which is likely to become more competitive as mortgage business levels (hopefully) continue to improve.
Indeed, those who are already starting on the diploma path are stealing a march on their peer group and, quite possibly, will be sitting pretty should (or rather when) the regulator changes its mind. For me there is no doubt the FCA will eventually insist on a higher basic level qualification for mortgage advisers and all things point to this being level four.
One suspects both lenders and consumers will begin to demand this and therefore, while I appreciate we are all up against it in terms of finding time to study, now could be a good time to pre-empt the way the industry will eventually be asked to move.
Bob Hunt is chief executive of Paradigm Mortgage Services
