United Kingdom: Regulatory Waivers

The Regulator

The Financial Conduct Authority (FCA) is the financial services regulator of the United Kingdom.

Requirements for Practice

The FCA issues the requirements for advising and dealing in securities and derivatives.

Benchmarks and Waivers

CFA Charter

Benchmark:
The CFA Program and CFA charter were benchmarked by UK NARIC as comparable to a Qualifications and Credit Framework / Regulated Qualifications Framework (QCF / RQF) Level 7 qualification, which is the same level as a master’s degree.

Waivers/Exemptions:
CFA charterholders are exempt from Investment Management Certificate (IMC) Unit 2, including those who advise retail (private) investors.

For those who have passed CFA Level I or II, an exemption from IMC Unit 2 can be obtained, providing no advice to retail (private) investors is undertaken.

Holders of both Unit 1 of the IMC and CFA Level III are not automatically awarded the IMC qualification. The exemption is only available to those who submit a successful application.

Learn more in the documentation of the waiver by CFA Society United Kingdom.

Investment Foundations Certificate Program

Benchmark:
The CFA Institute Investment Foundations Program was benchmarked as comparable to a QCF, now RQF Level 3 qualification.

Waivers/Exemptions:
The FCA recognizes the CFA Institute Investment Foundations certificate* (formerly known as Claritas Investment Certificate) as “Key 4” for the following job roles:

  • 15: Overseeing on a day to day basis operating a collective investment scheme or undertaking activities of a trustee or depositary of a collective investment scheme
  • 16: Overseeing on a day to day basis safeguarding and administering investments or holding client money
  • 17: Overseeing on a day to day basis administrative functions in relation to managing investments
  • 18: Overseeing on a day to day basis administrative functions in relation to effecting or carrying out contracts of insurance which are life policies
  • 19: Overseeing on a day to day basis administrative functions in relation to the operation of stakeholder pension schemes

The roles listed above require a combination of Keys 4, 5, and 6. The requirement can be fulfilled with the combination of the Investment Foundations certificate and other credentials typically focused on local regulations (Key 5) and operations (Key 6).

*The CFA Institute Investment Foundations certificate replaces the Claritas Investment certificate and the name will be updated in the FCA tables to reflect this, subject to FCA consultation and approval, in early 2017.

CIPM Program

Benchmark:
The CIPM Program was benchmarked as comparable to a QCF, now known as RQF Level 6 qualification, which is the same level as an honors degree or bachelor’s degree.

Changing Regulatory Requirements

Nick Bartlett, Director of Education at CFA Society of the United Kingdom, discusses changing regulatory requirements for retail investment advisers in the United Kingdom.
If the video does not display above, you can view it here.