The new qualification has been developed in consultation with the industry and will cost £990 with tutor support or £890 without tutor support.

The professional body says that it is a completely new qualification but has drawn on some of the content from the previous Level 3 qualification which it replaces.

The new course is expanded significantly and refocused, says the LIBF which says most students should be able to complete it within 9 months.

The Level 4 Diploma in Paraplanning (DipPP) will cover:

• the UK financial services industry, in its European and global context
• the FCA’s responsibilities and approach to regulation
• different types of risk and how they relate to institutions and individuals
• ethical, legal and vulnerability considerations
• impact of taxation on investments and other recommended solutions
• skills required to produce a suitability report that meets customer’s needs and aspirations.

Unit 1 – Financial Services Regulation and Ethics (FSRE) looks at financial institutions and services, the nature of risk and the FCA’s approach to ethical behaviour in financial advice.

Unit 2 – Paraplanner (PARA) will help students relate the broader market to the role of a Paraplanner, along with helping students to understand the influencing factors for client recommendations and how to demonstrate the required research to produce a suitability report to a high standard. It takes a practical and blended learning approach, including case studies.

Mark Heaton, managing director of Corporate & Professional Learning at The London Institute of Banking & Finance, said: “The skills and knowledge being demanded of paraplanners has grown extensively, particularly post MIFID II.

“Whereas in the past it may have been a ‘steppingstone’ to becoming a financial adviser, it is now a career in its own right. It is a highly technical role, and paraplanners are relied on by those in advisory positions as well as clients themselves. It’s time to reflect that in our qualifications and support Paraplanners in getting the recognition they deserve. We’ve worked very closely with the industry to ensure we achieve that.

“The Level 4 Diploma in Paraplanning takes a practical and blended learning approach, including case studies, and we’ve also mapped the qualification to the paraplanner apprenticeship standard. We hope these changes will help the sector recruit a new generation of Paraplanners to help fill the skills gap.”

The Level 4 Diploma in Paraplanning (DipPP) is open for registrations from today (13 Jan) and the start date is 17 February 2020. It replaces the existing Level 3 Certificate in Paraplanning & Financial Administration (CertPFA). Students currently studying the Level 3 qualification will be able to continue their studies or transfer to the new Level 4 qualification.