New standard for financial advisers

A new qualification for financial advisers, announced yesterday, is expected to become mandatory, the Central Bank said. Over the next few years, the Qualified Financial Adviser (QFA) qualification is expected to become the industry standard to make it easier for consumers to judge the competency of financial advisers.

Mr Liam O'Reilly, chief executive of the new Irish Financial Services Regulatory Authority (IFSRA), said the authority would encourage consumers to check for the letters QFA when dealing with financial advisers.

In the next couple of months, IFSRA will issue a consultative paper addressing minimum educational requirements in the industry and to what extent advisers' practical experience can be taken into account.

The Central Bank has established a QFA board to oversee the introduction of the standard in a joint venture with the Institute of Bankers in Ireland, the Insurance Institute of Ireland and the LIA, a training body for the industry.

Mr Bill Hannan, chairman of the QFA board, said the existence of a number of different qualifications made it difficult for consumers to easily satisfy themselves as to the competence of advisers.