Professionalising Professionalising Financial Services in Financial Services in

Europe:Europe: The €FPA ModelThe €FPA Model

Croatian Stakeholders MeetingCroatian Stakeholders MeetingApril 9April 9, 2008, 2008

ZagrebZagreb, , CroatiaCroatia

What is €FPA?What is €FPA? The €uropean Financial Planning Association (€FPA) is an The €uropean Financial Planning Association (€FPA) is an

organization which engages all levels of financial advisory organization which engages all levels of financial advisory practitioners and relevant institutions by supporting their practitioners and relevant institutions by supporting their respective efforts to meet education and competence respective efforts to meet education and competence requirements established by European legislation and by requirements established by European legislation and by stakeholders in the financial services sector. stakeholders in the financial services sector.

€€FPA informs best professional practices to sector FPA informs best professional practices to sector stakeholders and policy makers by:stakeholders and policy makers by: • Setting and actively promoting professional standards Setting and actively promoting professional standards

and; and; • Awarding certificates to practitioners who have achieved Awarding certificates to practitioners who have achieved

a standard of professional competence suitable to a standard of professional competence suitable to provide financial advisory services to clients.provide financial advisory services to clients.

What are the €FPA Standards?What are the €FPA Standards? €€FPA Promulgated Educational & Professional Standards Covering:FPA Promulgated Educational & Professional Standards Covering:

• Educational Programs (European & National),Educational Programs (European & National),• Examinations Programs (European & National),Examinations Programs (European & National),• Accreditation of Programs (European & National),Accreditation of Programs (European & National),• Continuing Professional Development (CPD) requirements,Continuing Professional Development (CPD) requirements,• Ethical Standards (European),Ethical Standards (European),• Professional Competences,Professional Competences,• And now the European Qualifications Framework.And now the European Qualifications Framework.

€€FPA Qualifications:FPA Qualifications:• €€uropean Financial Planner €FPuropean Financial Planner €FP• €€uropean Financial Advisor €FAuropean Financial Advisor €FA• €€uropean Associate Financial Advisor €AFA (National)uropean Associate Financial Advisor €AFA (National)

€€ducational Advisory Committee ducational Advisory Committee €AC€AC

Advise the Advise the €FPA Board on:€FPA Board on:• Accreditation of National Educational Standards,Accreditation of National Educational Standards,• Accreditation of National Examination Standards,Accreditation of National Examination Standards,• Mapping curricula of partner organisations for Mapping curricula of partner organisations for

recognition of prior learning,recognition of prior learning,• Applications from Potential National Affiliates,Applications from Potential National Affiliates,• Lead on €FPA Coordination with European policy Lead on €FPA Coordination with European policy

frameworks e.g. EQF, ECVET, etc.,frameworks e.g. EQF, ECVET, etc.,• Coordinate with Leonardo Project €FA Partnership,Coordinate with Leonardo Project €FA Partnership,• Means to improve the body of theory and knowledge in Means to improve the body of theory and knowledge in

financial advise in Europe.financial advise in Europe.

Practitioner Advisory Committee Practitioner Advisory Committee PACPAC

Advise the Advise the €€FPAFPA Board on: Board on:

• Policy Areas of interest to PractitionersPolicy Areas of interest to Practitioners• Policy papers and statements of the AssociationPolicy papers and statements of the Association• Membership services and benefitsMembership services and benefits• Practical aspects of €FPA’s educational programsPractical aspects of €FPA’s educational programs• Coordinate with Leonardo Project €FA PartnershipCoordinate with Leonardo Project €FA Partnership• Development of a European Trade Group for certified Development of a European Trade Group for certified

practitionerspractitioners• Improving the image of financial advisors across EuropeImproving the image of financial advisors across Europe• Educating consumers about the benefits of financial Educating consumers about the benefits of financial

advise as a financial serviceadvise as a financial service

Corporate Partnership:Corporate Partnership: Benefits provided by €FPA to the companies • Benefits provided by €FPA to the companies •

• Reduction on fees for examinations,Reduction on fees for examinations,• Special closed examinations for member institutions (Special Special closed examinations for member institutions (Special

examination would be in addition to the twice yearly open examinations),examination would be in addition to the twice yearly open examinations),• PrestigePrestige• Use of trademark (Corporate Partner of €FPA National)Use of trademark (Corporate Partner of €FPA National)• Use of €FA and €FP Certification Marks for employees Use of €FA and €FP Certification Marks for employees • Publicity/marketing (appear on €FPA National web page, mentioned in Publicity/marketing (appear on €FPA National web page, mentioned in

media) media) • Beneficiaries of two EU funded projects Beneficiaries of two EU funded projects • Part of the European registry of financial advisers/planners Part of the European registry of financial advisers/planners • €€FPA provides external/independent verification of employee FPA provides external/independent verification of employee

qualifications qualifications • Membership benefits for employees (Conference/seminar fees lowered, Membership benefits for employees (Conference/seminar fees lowered,

publications, privately recorded on €FPA planner search engine, publications, privately recorded on €FPA planner search engine, networking opportunities, participation in professional forums networking opportunities, participation in professional forums (nationally/Europe-wide)(nationally/Europe-wide)

How Do We Know it Works?How Do We Know it Works?Banif increases its profit before tax by 28%Banif increases its profit before tax by 28% These good results were fundamentally based on These good results were fundamentally based on

two factorstwo factors: firstly, the value offered by the bank, : firstly, the value offered by the bank, with a range of products and services with an open with a range of products and services with an open architecture that responds to customer architecture that responds to customer requirements with complete solutions; and requirements with complete solutions; and secondlysecondly, Banif’s expansion, with the opening of , Banif’s expansion, with the opening of new offices and new offices and the hiring of 60 wealth advisorsthe hiring of 60 wealth advisors for the time being. This group of professionals joins for the time being. This group of professionals joins almost almost 300 existing advisors, who constitute 300 existing advisors, who constitute the motor behind the sales force. All of them the motor behind the sales force. All of them hold the €uropean Financial Advisor (€FA) hold the €uropean Financial Advisor (€FA) certificatecertificate..

MiFID Changes Everything:MiFID Changes Everything: MiFID contains a high-level competence provision MiFID contains a high-level competence provision

(in Article 5(1)(d)), which requires firms within its (in Article 5(1)(d)), which requires firms within its scope to employ personnel with the skills, scope to employ personnel with the skills, knowledge and expertise necessary for the knowledge and expertise necessary for the discharge of the responsibilities allocated to discharge of the responsibilities allocated to themthem..

Built into this competence requirement is the Built into this competence requirement is the implication that employers need for employees’ implication that employers need for employees’ competence to be appropriately supervised and competence to be appropriately supervised and subject to regular review. subject to regular review.

Where national regulatory systems are not fully in Where national regulatory systems are not fully in place, someone needs to perform this review and place, someone needs to perform this review and ensure the continued competence of Advisors.ensure the continued competence of Advisors.

What Does Competence Mean in What Does Competence Mean in MiFID?MiFID?

Leonardo da Vinci Programme Funded by the EU:Leonardo da Vinci Programme Funded by the EU:

AimAim

To establish: To establish: • A Core Competence Framework and,A Core Competence Framework and,• An Educational Competence Diagnostic tool for the €uropean Financial An Educational Competence Diagnostic tool for the €uropean Financial

Advisor.Advisor.

Objectives:Objectives: To specify the core competences for the €uropean Financial To specify the core competences for the €uropean Financial

Advisor,Advisor, To create an interactive Educational Competence Assessment tool,To create an interactive Educational Competence Assessment tool, To develop a self-sustaining implementation strategy for the new To develop a self-sustaining implementation strategy for the new

full competence qualification,full competence qualification, To valorise the products by means of a conference and To valorise the products by means of a conference and

dissemination.dissemination.

€€QUALIFISEQUALIFISE

€€uropean uropean QuQualification alification AAssurance ssurance LLeague eague IIn n FiFinancial nancial SeServicesrvices

1/08 to 6/091/08 to 6/09 {EQF = European Qualifications {EQF = European Qualifications

Framework -NQF = National Framework -NQF = National Qualifications Framework}Qualifications Framework}

€€QUALIFISE - ObjectivesQUALIFISE - ObjectivesFor financial services sector:For financial services sector: Methodology for assigning EQF levels (knowledge Methodology for assigning EQF levels (knowledge

or professional competence)or professional competence) Assign EQF (and NQF) levels to existing national Assign EQF (and NQF) levels to existing national

& European qualifications& European qualifications Design system to assure (monitor, review, Design system to assure (monitor, review,

endorse) nationally assigned EQF levels endorse) nationally assigned EQF levels Set up League to assure EQF levelsSet up League to assure EQF levels Conference in May 2009Conference in May 2009

€€QUALIFISE - PartnersQUALIFISE - PartnersNLNL €FPA - €uropean Financial Planning Association€FPA - €uropean Financial Planning AssociationLuxLux EBTN - European Banking & Financial Services Training Association Asbl EBTN - European Banking & Financial Services Training Association Asbl ItIt Scienter Soc. Cons. a R.L.Scienter Soc. Cons. a R.L.DkDk DBA - Danish Banking Association - FINANSRAADETDBA - Danish Banking Association - FINANSRAADETDD FSFM - Frankfurt School of Finance & ManagementFSFM - Frankfurt School of Finance & ManagementGrGr HBA - Hellenic Banking Association, ΕΛΛΗΝΙΚΗ ΕΝΩΣΗ ΤHBA - Hellenic Banking Association, ΕΛΛΗΝΙΚΗ ΕΝΩΣΗ Τ ΡΑΠΕΖΩΝΡΑΠΕΖΩΝSpSp AEAPFP - Asociación Española de Asesores y Planificadores Financiero AEAPFP - Asociación Española de Asesores y Planificadores Financiero Patrimoniales - Patrimoniales -

Spanish Association of Financial Savings Planners and Spanish Association of Financial Savings Planners and AdvisersAdvisersFF CFPB : Centre de Formation de la Profession BancaireCFPB : Centre de Formation de la Profession BancaireItIt ABISERVIZI SpA –Italian Banking Association – Training DepartmentABISERVIZI SpA –Italian Banking Association – Training DepartmentNLNL FFP – Federation of Financial Planners, Vereniging Federatie FFP – Federation of Financial Planners, Vereniging Federatie Financieel Financieel

PlannersPlannersPLPL WIB - FUNDACJA Warszawski Instytut Bankowosci - Foundation Warsaw WIB - FUNDACJA Warszawski Instytut Bankowosci - Foundation Warsaw

Institute of BankingInstitute of BankingPP IFB- Instituto de Formação Bancária - The Portuguese Bank IFB- Instituto de Formação Bancária - The Portuguese Bank Training InstituteTraining InstituteUKUK CII - Chartered Insurance InstituteCII - Chartered Insurance InstituteNLNL NIBENIBE

€€QUALIFISE – Relay PartnersQUALIFISE – Relay PartnersBELGIUMBELGIUM €FPA Belgium€FPA BelgiumCYPRUSCYPRUS IFS Cyprus IFS Cyprus CZECH CZECH Association of Financial Intermediaries Association of Financial Intermediaries and and

Financial Advisors of the Czech Financial Advisors of the Czech RepublicRepublic (AFIZ) (AFIZ) HUNGARYHUNGARY IBRME Institute of Bankassurance and IBRME Institute of Bankassurance and

Risk Management Education LtdRisk Management Education LtdMALTAMALTA IFS MaltaIFS Malta ROMANIAROMANIA Romanian Banking Institute Romanian Banking Institute SLOVAKIASLOVAKIA Institute of Banking Education (National Institute of Banking Education (National

Bank of Slovakia)Bank of Slovakia)SLOVENIASLOVENIA Bank Association of SloveniaBank Association of Slovenia

Thank YouThank You

Presented by Michael FawcettPresented by Michael Fawcett€€FPA CEOFPA CEO

fawcett@efpa-europe.orgfawcett@efpa-europe.orgApril 9April 9, 2008, 2008