1 Background 1.1 Section 3.3 of the Codes of Practice for Investment Business (the Codes of Practice ) requires a registered person to assess and monitor the competence of its employees. Section 3.3.5 of the Codes of Practice details the competency requirements for investment business staff. 1.2 One method by which competence can formally be assessed is by reference to professional qualifications that an employee may hold. Section 3.3.5.1 of the Codes of Practice states that all investment employees must hold a professional qualification that is appropriate for their role. 1.3 This Guidance Note contains details of professional qualifications that are acceptable to the Commission when held by investment employees who perform various regulated functions within investment businesses. The Guidance Note must be read in conjunction with the Codes of Practice. 1.4 The Codes of Practice confirm that a registered person is responsible for ensuring that its employees are appropriately qualified for the role (or roles) that they perform. Registered persons should be aware that a qualification that is suitable, for example, for an employee that provides investment advice to their clients may not be acceptable for a different activity, such as managing investments. 1.5 Registered persons may wish to refer to the Appropriate Exam list published by the Financial Services Skills Council on their website www.fssc.org.uk for assistance in establishing whether a qualification included in the Table of Acceptable Professional Qualifications for Investment Business (section 2 below) is considered relevant for a specific investment activity that may be undertaken by an employee. 1.6 Qualifications that are not listed within this Guidance Note (for example, qualifications provided by overseas awarding bodies) may be accepted by the Commission as equivalent to those referenced in the table below. Section 3.3.8 of the Codes of Practice details the process by which an application may be made to the Commission for alternative qualifications to receive consideration. 1.7 The table of qualifications contained in this Guidance Note will be reviewed and updated periodically to take into account changes to qualifications, new qualifications and comments received from the investment business industry. The Commission intends to form a Qualifications Steering Group to assist in this process and intends that this working party will include representation from all sectors of the industry. Issued: 1 July 2008 Page 1 of 6
2 Table of Acceptable Professional Qualifications for Investment Business Managing Investments Qualification Investment Management Certificate Certificate in Investment Management Awarding Body CFA Society of the UK (formerly Diploma Masters in Wealth Management Chartered Financial Analyst Certified International Investment Analyst + UK regulatory module Associate of the Chartered Institute of Bankers (where examinations taken have included the Investment module) Association of Investment Management Research A Chartered Institute of Bankers Dealing in Investments Qualification Certificate in Securities Certificate in Securities & Financial Derivatives Certificate in Investment Management Investment Advice Certificate Masters in Wealth Management Investment Management Certificate Diploma Associate of the Chartered Institute of Bankers (where examinations taken have included the Investment module) Awarding Body CFA Society of the UK (formerly Chartered Institute of Bankers Page 2 of 6 Issued: 1 July 2008
Providing Investment Advice Qualification International Certificate in Financial Advice Certificate for Financial Advisers Investment Advice Certificate Masters in Wealth Management Financial Planning Certificate Advanced Financial Planning Certificate Certified Financial Planner Certificate in Financial Planning Chartered Financial Planner Certificate in Securities 1 Certificate in Securities & Financial Derivatives Certificate in Investment Management Diploma Investment Management Certificate Associate of the Chartered Institute of Bankers (where examinations taken have included the Investment module) The IFA Qualification Certificate in Mortgage Advice and Practice 2 Awarding Body ifs School of Finance Institute of Financial Planning CFA Society of the UK (formerly Chartered Institute of Bankers ifs School of Finance Issued: 1 July 2008 Page 3 of 6
3 Qualifications table at a glance Qualification Awarding Body Managing Dealing Advising Advanced Financial Planning Certificate (AFPC) X Associate of the Chartered Institute of Bankers (where examinations taken have included the Investment module) Chartered Institute of Bankers X X X Certificate for Financial Advisers (CeFA) ifs School of Finance X Certificate in Financial Planning (Cert FP) X Certificate in Investment Management (Cert IM) X X X Certificate in Securities & Financial Derivatives X X Certificate in Securities 1 X X Certified Financial Planner (CFP) Institute of Financial Planning X Certified International Investment Analyst + UK regulatory module A X Chartered Financial Analyst (CFA) Association of Investment Management Research X Chartered Financial Planner X Diploma X X X Page 4 of 6 Issued: 1 July 2008
Qualification Awarding Body Managing Dealing Advising Financial Planning Certificate (FPC) X International Certificate in Financial Advice (ICFA) X Investment Advice Certificate (IAC) X X Investment Management Certificate (IMC) CFA Society of UK (formerly X X X Masters in Wealth Management (M) X X X The IFA Qualification X Certificate in Mortgage Advice and Practice (CeMAP) 2 ifs School of Finance X Key to acronyms used for Awarding Bodies: The Securities & Investment Institute The Chartered Insurance Institute 1 The s Certificate programme is the replacement for the SFA Registered Representative qualification. 2 CeMAP qualification acceptable only for providing advice on long term insurance contracts where such advice is directly related to a mortgage. Issued: 1 July 2008 Page 5 of 6
4 Notes to the Guidance Note 4.1 The Commission is aware that a wide range of investment-related professional qualifications are available and the above list is therefore not intended to be an exhaustive list of appropriate qualifications. The Commission will consider other comparable qualifications in relation to individual roles, upon receipt of an application from the registered person (in line with the process set out in section 3.3.8 of the Codes of Practice). 4.2 For the sake of clarity, registered persons are not required to seek exemptions from the Commission again where these have previously been granted to a registered person in respect of a specific investment employee or employees. 4.3 Where complex financial instruments are transacted, for example derivatives, more specialised qualifications may be required to ensure that the registered person can demonstrate that its employees are competent to conduct such activity. Forward Foreign Exchange 4.4 The ACI Dealing Certificate is the minimum requirement to conduct forward foreign exchange activities caught within the meaning of paragraph 7 of the first schedule of the Financial Services (Jersey) Law 1998 (the Law ). The following guidelines apply to investment employees whose main role is conducting this particular activity: 4.4.1 For execution only, the minimum requirement is the ACI Dealing Certificate plus two years experience in an active trading environment. 4.4.2 For the giving of investment advice as to the merits of buying or selling a particular currency, the minimum requirement is the ACI Dealing Certificate plus five years experience in an active trading environment 4.5 The ACI Diploma is a more advanced qualification, again designed specifically for staff employed within a treasury operation. The requirements in terms of experience in an active trading environment do not apply to investment employees that hold this qualification and conduct or advise on forward foreign exchange transactions (as defined in the Law). Page 6 of 6 Issued: 1 July 2008