Review of Financial Advice — ‘Jersey RDR’

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The Review of Financial Advice (RFA) is the Jersey Financial Services Commission’s response to the UK Financial Services Authority’s Retail Distribution Review (RDR), which took effect from 1 January 2013. The RFA proposals are currently scheduled to take effect on 1 January 2014. It is expected that amendments to the codes of practice to implement these changes will be published in due course.

All persons registered to carry on classes C and D investment business in Jersey and all investment employees at such firms (together with their current and prospective clients) will be affected by the proposals:

  • Clients will be divided into “Professional”* or non-Professional (retail) categories and divided into those who are Jersey resident and those who are not.
  • The benchmark qualification level for all investment employees who provide investment advice to non-Professional or retail clients (wherever resident) will be raised to the equivalent of level 4 QCF (Qualifications and Credit Framework) or level 4 NQF (National Qualification Framework) with an option for ‘gap-fill’ in some circumstances. 
  • So called ‘grandfathering’ (where certain employees continue to give investment advice based on their experience, despite not holding the required qualifications) will not be permitted…

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