Level Four will be the minimum qualification level for financial advisers post-RDR.

In its consultation on the RDR, the Treasury Select Committee questioned whether the FSA would later move from Level Four to Level Six, equivalent to the first year of an undergraduate degree.

But in the FSA response document, it states that it has no plans to raise the standards.

It said: “While many individuals have already achieved or are progressing towards level six or higher on a voluntary basis, we have no plans to raise the examination standards.”

However, it did say it would be reviewing the level of appropriate qualification level every three years and change would be dependent on industry responses.

“We will review the examination standards every three years but have no pre-conceived ideas about future content or level. Our reviews will include consultation with the industry, and if they reveal a need to update a standard, the new standards and level will be developed in conjuction with the industry.

This announcement will be good news for IFP members who are already qualified as CFP^CM professionals.

CFP qualification recognises advisers as having achieved Level Six so if the FSA does not plan to make this the standard then they will continue to have superiority in Financial Planning.