Opinion

15 FANTASTIC YEARS

Keith Richards reflects on what has been achieved in the first 15 years of the Societ y – and what the future holds

The PFS celebrated its 15-year anniversary this month, giving us a chance to look back at the revolution of our profession that has taken place in that time.

In 2006, a year after the PFS was established, John Tiner, then chief executive of the Financial Services Authority, announced the retail distribution review (RDR), saying: “While there are certainly fi rms in the market who meet or exceed the Financial Services Authority’s standards… there are still far too many who fall some way short. In many cases, it may be that the enthusiasm and good intent of senior management has failed to translate into real understanding at working level.”

Six years later, the Financial Conduct Authority (FCA) implemented the RDR, which is still one of the biggest reforms of any fi nancial advice market in the world. Many thought it posed a huge threat to the profession. In 2012, as the implementation date drew near, one highly respected commentator said: “Much of the historic fi nancial advice industry in the UK will be destroyed with major job losses.”

PROFESSIONAL PROGRESS In this context, the progress of the PFS is extraordinary. At the end of 2005, membership of the PFS had reached 22,200, with 3,913 members qualifi ed to Level 4 Diploma, today’s post-RDR minimum qualifi cation standard. Fast forward 15 years and the PFS is the sector’s leading professional body with more than 40,000 members, 53% of who are now qualifi ed to at least Level 4. Many have pushed on to higher standards.

In December 2005, Chartered fi nancial planner status was launched to help consumers recognise those advisers achieving high technical competence; by year end 389 early adopters had proudly qualifi ed to use the title. Today, more than 7,000 members are now eligible to use the coveted title.

Th e challenge that Mr Tiner set in 2006 – to turn good intentions into consistently high professional standards – has been met. Th is was underlined by a recent piece of qualitative research for the FCA, which noted: “Perceptions of those using regulated advice are highly positive, with strong levels of satisfaction, for both one-off and ongoing regulated advice. A key outcome is the emotional benefi t of receiving peace of mind that appropriate action is being taken to meet fi nancial objectives. Th e value of advice is clear to this group.”

However, we are not resting on our laurels. Th e last fi ve years have seen even bigger challenges for our profession: the introduction of pension freedoms at breakneck speed in 2015, the hardening market in professional indemnity insurance and the opportunities that come with

CEO KEITH RICHARDS

Personal Finance Society

Perceptions of those using regulated advice are highly positive, with strong levels of satisfaction, for both one-off and ongoing regulated advice

technological advances such as open banking.

Facing up to these challenges will require the kind of energy and creativity that helped our profession turn the RDR into a success. Most importantly, we will have to use the community that we have created to solve problems together.

In that spirit, 2020 will also see the return of the much-lauded Festival of Financial Planning at Birmingham’s NEC in November. Th e 2016 event proved popular in uniting the sector, with 3,500 delegates enjoying top-quality continuing professional development while networking in a fun environment.

TAKING THE INITIATIVE During the last decade, the PFS has also increased its engagement and infl uence with government, regulators and consumer groups. Recent initiatives include the creation of Th e Pension Advice Taskforce and resulting Pension Transfer Gold Standard, which is gathering momentum with stakeholders across the market. And 2020 will see the return of FCA speakers to our programme, keen to share examples of good and poor practice around pension transfers.

We are expanding our pro bono programmes and increasing the reach of our My Personal Finance Skills initiative in schools nationwide, as a way of both educating students about personal fi nance and also showcasing the rewarding careers available in the sector. It is exciting for the future of our profession that we are beginning to attract new generations of advice professionals with a clear benchmark and role within a Chartered profession.

During the next 15 years, I am certain that we will see growth in the numbers of advisers and, together with innovative fi ntech solutions, we will fi nally start to address the advice gap. ●

JOIN THE DISCUSSION

For more information and to off er your feedback, please visit: PFS member email: membership@thepfs.org Pension Transfer Gold Standard: thepfs.org/ptgs PFS fi nancial planning and good practice: pfspower.org Apprenticeships: thepfs.org/Apprenticeships ScamSmart: thepfs.org/scams Good practice hub: thepfs.org/good-practice