The New QFA Qualification

First Train Magazine - August 2007

A new professionally recognised qualification, the QFA Diploma, will strongly benefit the financial products retail industry. Dermot Corrigan reports on what the qualification entails...

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The introduction of the new QFA (Qualified Financial Advisor) continuous professional development qualification has had a dramatic impact on career development and training in the Irish financial services sector.

The QFA Diploma is a required competency requirement that was announced by the Financial Regulator in July 2006 and introduced on the 1st of January 2007. It is now the single benchmark qualification for those working in an advisory capacity in the retail financial sector in the Republic of Ireland.

The administration of the QFA Diploma is overseen by the QFA Board, which is a joint venture of the Institute of Bankers in Ireland, the Insurance Institute, the LIA and the Central Bank.

Individuals working in the insurance, banking and other related financial services sectors can gain the qualification. It is particularly aimed at those working in retail, public-facing advisor positions.

The Qualified Finanicial Advisor Diploma, offered by the Institute of Bankers in partnership with LIA and the Insurance Institute of Ireland, satisfies the educational requirements for designation as a Qualified Financial Adviser (QFA). Anyone who succesfully completes the diploma course is recognised by the Financial Regulator as having the skills and knowledge to adequately advise consumers on financial services and products.

“Those who hold the QFA Diploma meet the financial regulators Minimum Competency Requirements (MCRs) for selling, or advising on five categories of retail financial products,” said Mike Brouder, education specialist with The Institute of Bankers in Ireland.


These five categories are


* Savings, investment and pension products

* Housing loans and associated insurances

* Consumer credit and associated insurances

* Life assurance protection products

* Shares and bonds and other investment instruments


What is in the QFA Diploma

“An individual who wishes to complete the diploma with a view to meeting these minimum competency requirements can register with The Institute of Bankers in Ireland or the LIA, who also offer the diploma,” said Brouder. LIA is an educational and professional body for people working in the Financial Services Industry. There are also private educational institutions who offer tuition towards the qualification, including Dublin's Moresoft Institute and Ormonde Business School, Tullamore.


Students are required to successfully complete six modules to gain their QFA Diploma. These are Life Assurance, Regulation, Pensions, Loans, Investment and Financial Planning. There are written examinations in each of the modules which can be sat in a number of locations across the country.


“All six modules are offered over three terms within an academic year,” said Brouder. “Typically students would take either one or two modules per term and must take the QFA Financial Planning module after all the other modules, as this is the summative module for the course.”


Take-up of the qualification from people working within the financial services industry has been excellent, according to Brouder.


“The QFA Diploma is the most popular course in financial services in Ireland with strong registrations country-wide and across financial institutions,” he said.


Who may register for the diploma?

Brouder said that there were many career development benefits for individuals in gaining the qualification.


“As well as offering students the opportunity to enhance their breadth and depth of knowledge to provide consumers with sound professional advice, the diploma also satisfies the educational requirements for designation as a QFA,” he said.


Anyone working in the financial services industry is free to undertake the QFA programme.


“While the qualification is open to all, it appeals most to those who wish to complete the diploma as a means to meeting minimum competency requirements and to develop their skills to provide sound professional advice,” said Brouder.


People who do not currently work in financial services, but who wish to further their career prospects in this or a related area are also welcome to apply.


“New entrants may apply for the diploma on the same basis as other students,” said Brouder. “The diploma is a general entry point for school leavers and graduates in the Institute of Bankers education structure.”


Staff who have built up experience working in the industry, or who have previously been awarded with relevant professional qualifications, may be able to benefit from an exemption, according to Brouder.


The QFA can be seen as an introductory step up the financial services career ladder. Brouder said that holding a QFA diploma enabled the holder to further exemptions if they wished to gain higher qualifications in the financial services area.


“Those who complete the QFA Diploma are exempt from six of the 12 modules of the Joint Financial Services Diploma (JFSD),” he said. “Holders of the JFSD gain direct entry to Level two of UCD’s Bachelor of Financial Services.”


CPD and the Institute of Bankers

Other CPD programmes run by the Institute of Bankers include the Specialist Certificate in Mortgage Practice, Foundation Certificate in Consumer Credit and Bridge to General Insurance. Further up the ladder is the Certified Banker (CeB) award, which is the most prestigious examination-based professional qualification awarded by the Institute. It is awarded to those who have gained both the requisite educational standard and experience to operate effectively in managerial, supervisory, professional or specialist roles in banking and financial services.


Brouder said that continually upgrading and supplementing professional qualifications and expertise was very important within the retail end of the financial services industry in Ireland.


“Continual Professional Development (CPD) encourages life long learning and will ensure that your knowledge and skills are kept up to date with ongoing developments in the industry and in your business,” he said.


Brouder predicted that the existence of a recognised professional standard meant that people looking to work within the financial services retail sphere would require a QFA designation in future.


“It is too soon to detect an observable impact on recruitment,” said Brouder. “However, in the longer term, the QFA Diploma will clarify the career path for those advising the public on retail financial products and it is likely that the QFA will be a prerequisite for key customer-facing roles in financial services.”


The existence of recognised professional development standards is good for the industry as a whole, said Brouder.


“CPD helps establish minimum standards across the industry,” he said. “Under minimum competency requirements all accredited individuals will be obliged to complete CPD.”


Brouder said that this recognition was shared by all the financial institutions operating in the Irish market.


“We currently have students from across the financial institutions,” he said. “Each organisation has its own support structure in place for their staff.”


The QFA and Consumers

The QFA Board is keen to raise public awareness of the newly introduced qualification and produced a number of advertising campaigns across press and radio earlier this year. They have also commissioned silver QFA pins which each qualified person receives and are encouraged to wear it on their lapel, collar, tie, breast-pocket – wherever is visible to members of the public and/or colleagues.


According to Brouder the implementation of the QFA programme meant that consumers of financial services and products know that they are dealing with a representative who is equipped with a recognised level of competency.


“The QFA designation, for which holders of the diploma may apply, is a way for consumers to recognize that their financial adviser has attained a minimum level of competency to advise on the specific categories of retail financial product covered by the QFA diploma,” he said.


More information on the QFA is available from the QFA Board at www.qfaboard.ie, while you can register online at the Institute of Bankers’ website www.bankers.ie or the LIA website www.lia.ie. Alternatively, telephone (or email) LIA on 01-4563890 (details@lia.ie) or IOB on 01-6116500 (qfa@bankers.ie).