Cefa

shazkhan111

I am looking to study Cefa 1 and Cefa 2 can anyone advise what the cheapest way to do it ... all i need is the books and exam ....

dunstonh

Any reason you are only looking at 2 of the modules and not all 4?

You may prefer to look at the CII option http://www.cii.co.uk/financialservices.aspx

This is more widely used and goes to a higher level. This is important as the current level will not be enough in a few years and you will have to sit four from J1 to J7 at least on top of CF1 to CF5.

Getting used to the CII way of doing things from the start is a good idea. Plus, for the exams, they have more local testing locations.

The books, courses, training are all valid business expenses. You may be able to pick up some old ones but be very careful if you do. The training material is tax year and legislation specific. With the changes to trusts and pensions in the last 18 months, some tweaks on ISAs and REITs and a few other things, you must make sure you have the latest training material otherwise you will have obsolete knowledge.

Mr_Mumble

The CII are happy to accept the CeFA for those who wish to go on and do their diploma:
http://www.cii.co.uk/financialservices/qualifications/dipFP/unitsandreqs.aspx

The CFP and CeFA are effectively the same qualification with the syllabus laid down by the Financial Services Skills Council. If you have the choice (employers may dictate of course) then the decision is between doing the protection and pensions elements in a single module (CeFA 3) or split them as the CII do (CFP3 and CFP4).

shazkhan111

i want to be a financial planner with the company i work for and have been told to do Cefa 1 and Cefa 2 to get into it ...i can the do cefa 3/4 once i am working...

what is CII ...its a bit confusing?

dunstonh

CII = chartered insurance institute. They are one of the exam providers. They are the original and the one that most companies use. That doesn't stop you doing CEFA but seeing as the FSA proposals mean that CEFA 1-4 wont be enough in a few years and you will have get diploma or advanced diploma, then using CII from the start rather than mixing and matching the qualifications may make sense. You can mix and match but getting used to a qualification style can make sense.

Remember under the proposals, Cefa 1-4 wont be enough unless you intend to be a "primary" adviser. That is likely to be a low paid, low skilled job at at the bank or a resurgence in the old insurance agent. It is fine for now but the FSA proposals are expected to come into force during 2009.

If you intend to go IFA later on, then having the CII exams can be more beneficial as they are what the majority hold and the IFA promotions website has a qualification filter. Having the popular exams means you are more likely to appear after filtering.

shazkhan111

what modules would u recommend from cii as equivalent to cefa 1 and 2?

shazkhan111

can u define primary advisor....vs "secondary" advisor?

dunstonh

primary adviser will be the basic adviser. It will be the current CEFA1-4 or CIIs version 1-5. It will be a flow chart advice style, basic products and likely to be low paid. It will be the bank and insurance company salesforce model. Mainly as there will be virtually no FOS protection with this advice model.

Then you have general advice which will require diploma level. This is where 90% of IFAs currently sit although some will need to take the remaining exams as G60 or K10 (for example) by themselves will not be enough. This is the equivalent of the current level of advice but with 4-5 more exams required than currently needed. The FSA have stated initially that this will only be a transitional level that will be phased out.

The top level "professional adviser" will require advanced diploma which is another 4 exams on top of the diploma and is at degree level. Only this level will be able to use the term IFA. Very few advisers sit at this level currently.

You may wish to read the FSAs Retail Distribution Review (RDR). Its under consultation at present so its open to change. It is expected to come into force in 2009. There should be a transitional period to allow you to get the extra exams required.

The career path to professional adviser/IFA in future is going to be very much harder and not as rewarding financially (which is why many didnt go for the extra exams as there was no financial reason to do so). Primary level is likely to be quite low paid as its a volume model. It is thought the insurance companies will re-introduce insurance agents and the banks will adopt that model as the cost to train their staff to diploma level will be prohibitive. The lack of FOS protection will suit salesforces big time.

Brum_Man

dunstonh wrote: »

Any reason you are only looking at 2 of the modules and not all 4?

You may prefer to look at the CII option http://www.cii.co.uk/financialservices.aspx

This is more widely used and goes to a higher level. This is important as the current level will not be enough in a few years and you will have to sit four from J1 to J7 at least on top of CF1 to CF5.

Getting used to the CII way of doing things from the start is a good idea. Plus, for the exams, they have more local testing locations.

The books, courses, training are all valid business expenses. You may be able to pick up some old ones but be very careful if you do. The training material is tax year and legislation specific. With the changes to trusts and pensions in the last 18 months, some tweaks on ISAs and REITs and a few other things, you must make sure you have the latest training material otherwise you will have obsolete knowledge.

Hello Dunstonh,

Do you have a link to the review that lays out exactly what level of exams etc. you going to be expected to have to be able to give advice at a certain levels? I can find the full PDF review but that goes on for around 77 pages so just wondered it you had a link with a condensed version anywhere?

Thanks.

dunstonh

Here is one of the better links:
http://www.thepfs.org/index.aspx?pageid=326&nav1=1&nav2=305&sid=1

It gets interesting around mid page.

Quick and dirty summary is

Basic advice - not likely to be many of these as there isnt now although the banks may employ it to some degree.

Primary advice - limited or no FOS protection for consumers. Similar qualification levels to that currently required. Likely to be used by banks and could see an introduction of salesforces and insurance agents. Most consumers are expected to see this level adviser in future.

professional advice - This will require higher qualifications and will have to work to customer agreed remuneration (similar to NMA IFAs do currently). FOS protection will exist. However, as the salesforces are unlikely to work to this model, the average consumer will not see a professional adviser.

The FSA has already back tracked on its suggestion that independent wouldnt have to mean whole of market. So, bits on that can be ignored.

Brum_Man

Ah, cheers for that. I did have a look around the CII website but couldn't see anything, completely forgot about the PFS one!