The government has set out formal standards for financial advice apprenticeships, which are due to be launched next year.
In documents published yesterday, the government laid out details of what an apprenticeship should include and how they should be assessed.
An apprenticeship in financial advice should ensure the apprentice can show understanding in five key areas including cashflow modelling and the financial services market, according to the standards.
Here is a full list of the competencies:
- Understanding the structure of the Financial Services market
- Understanding the financial services regulatory framework
- Understanding financial products & financial planning tools (e.g. cashflow modelling)
- Understanding all systems and controls required to deliver the key objectives for the client, and firm.
- Understanding the significance and importance of knowing your client
Apprentices should also show skills in six key areas including know your customer and business development, and be able to demonstrate five key behaviours such as professionalism and a positive mental attitude.
The assessment of these apprenticeships should consist of a case study test and a viva based on a portfolio of evidence.
Darren Smith, head of the Old Mutual Wealth Financial Adviser School, said having the set of standards will encourage more people to join the profession.
‘Having a recognised apprenticeship standard for the financial planning profession will help to attract young people leaving education as they consider what career path they would like to pursue.
‘Financial advice is in huge demand in the UK and a career as a professional financial adviser represents a great opportunity,’ said Smith.
The Financial Adviser School recently reminded advice firms of the government’s apprenticeship scheme to be launched in April, under which the government will pitch in up to 90% of the fees for training apprentices.