The Republic's increasingly affluent consumers need financial advice and longterm planning strategies now more than ever. Despite this demand, the Government and industry have dragged their feet on the training and regulation of those who offer advice to consumers.

In Britain and the United States, financial planners and investment advisers must undergo rigorous training and pass difficult regulatory exams before offering their services.

Titles such as financial planners and investment advisers are relatively new in the Republic, and training and regulation of planners is minimal or non-existent depending on which products they sell.

The Consumers Association of Ireland (CAI) has highlighted the lack of protection for consumers purchasing products through financial planners.

At the moment, the laws governing the activities of personal financial planning intermediaries include: the Insurance Act 1989, the Investment Intermediaries Act, 1995 and the Consumer Credit Act, 1995.

Those who provide investment advice and arrangements should technically come under the Investment Intermediaries Act. However, if giving advice is strictly incidental to the person's overall work, such as a solicitor or accountant, then it may fall outside the Act.

Each area of the financial services industry is regulated by either the Central Bank, the Department of Enterprise, Trade and Employment, an Ombudsman scheme or a self-regulating industry group.

These criss-crossing laws and multiple regulators mean some planners and advisers slip through the net.

Thankfully, the life assurance industry which is well-established here and therefore slightly more regulated, has made some basic moves in industry training recently.

The Life Insurance Association (LIA) and the Insurance Institute of Ireland (III) have joined forces to provide a diploma course and qualification for life insurance advisers.

This qualification should make it easier for consumers to recognise individuals who have received some financial training.

The three-part financial planning diploma syllabus covers material from the social welfare system to protection products, savings and investments, mortgages and pensions, the euro and regulation.

Part I is a basic 120 multiplechoice competency exam that life advisers are required to take to comply with Irish Insurance Federation rules.

Once an insurance intermediary passes the exam he or she may register for a Life Assurance Registration Council (LARC) number which allows them to sell products.

To receive a diploma as a qualified financial adviser, both parts II and III of the financial planning diploma must be completed successfully.

The IIF, which is recognised as the industry regulator, has approved the diploma.

Although this is a positive step for consumers, self-regulation and industry-based training may not be the final answer.

After years of disastrous self-regulation policies, the British government took a firmer role in the authorisation and registration of financial advisers.

The British independent Financial Services Authority (FSA) has a statutory responsibility to regulate the industry there. Last November, the FSA proposed a new policy framework which includes a requirement that certain employees pass approved examinations.

The body hopes to eventually tailor exams that will establish international qualifications and standards of competence.

In the US, self-regulation has worked extremely well for consumers.

The regulation section of the main industry body, the National Association of Securities Dealers (NASD), requires all securities professionals to pass one or several exams based on their line of work.

Even those in the business for decades were required to take the exams when they became mandatory several years ago.

Although the Irish financial services industry is expecting stricter regulation of salespeople in the future it is uncertain which model they will follow - a strong self-regulating body or enforced changes made through the financial regulator.

Fraud makes headlines but misselling is more commonplace. Increased consumer protection may only materialise when the single regulatory authority for financial services is introduced. Even then, it remains to be seen whether advisers will be required to undertake training and pass Government mandated competency exams.

Consumers are advised to do their own research and to choose an adviser carefully in advance of mandatory training and regulation.