In the UK, you need a Level 4 Diploma in Regulated Financial Advice to practice as a financial adviser. The degree-standard academic qualification involves multiple exams and modules, designed to ensure a level of knowledge, and awareness of financial services regulation, needed to support people with their financial planning capabilities.

If you’re considering a career in financial advice, one of the most critical decisions you’ll make is selecting the right qualification. With various options available, each tailored to different learning styles and career goals, understanding your options is key. The Academy spoke to Lewis Prosser, Head of Professional Development at St. James’s Place, about the qualifications offered by the main professional bodies, their differences, and how to choose the right path for you.
 

Where can I get my Level 4 Diploma?

In the UK, three primary organisations offer Level 4 financial planning qualifications: the Chartered Insurance Institute (CII), the London Institute of Banking and Finance (LIBF), and the Chartered Institute for Securities & Investment (CISI). 

To give financial advice in the UK, you must hold a regulated, RDR compliant qualification, awarded by a professional body. These professional bodies are regulated by the Financial Conduct Authority (FCA) and set standards across the financial advice profession. 

“If you’re uncertain about which qualification to go for, seek advice from industry professionals, or consult trusted resources like the Future Financial Adviser website. There are some scams out there, so it’s important you verify the exams you take are legitimate,” says Lewis. 

What are the key differences between the qualifications?

All three qualifications provide the depth and breadth of knowledge needed to give financial advice, and all are regulated by the FCA. However, there are some differences:

CII Diploma in Regulated Financial Planning (Dip PFS)

The CII’s Diploma has been a cornerstone of financial advice education since the RDR reforms in 2012. It consists of six units covering core areas of financial planning, with a mix of multiple-choice exams and coursework. Supported by a wealth of training providers such as Redmill (the chosen provider for the St. James’s Place Financial Adviser Academy), the CII qualification offers in-depth knowledge and practical application, making it a popular choice for those pursuing a career in financial advice.

LIBF Diploma for Financial Advisers (DipFA)

The LIBF recently revamped its diploma in 2024. It now consists of 6 units to incorporate six individual units, including Investments, Pensions, Taxation and Protection.  While the core topics and outcomes are similar to the CII, the assessment methods differ. LIBF includes coursework that emphasises practical application, which is ideal for candidates who prefer to learn by doing, or those with hands-on experience, such as paraplanners.

CII Investment Advice Diploma (IAD)

CISI takes a different approach with three multiple-choice exams, including the Financial Planning and Advice exam, each lasting two hours and comprising of 80 questions. This structure appeals to individuals seeking a shorter route into financial advice or those exploring broader opportunities in the investment sector.

Exam formats and assessment styles

“Understanding your learning style – whether visual, auditory, reading/writing, or kinaesthetic (VARK) – can help you choose the qualification and training support best suited to your needs”, says Lewis. 


The assessment methods for each qualification cater to different learning styles:

CII: Combines multiple-choice exams with a practical, scenario-based final exam. This involves case studies issued two weeks prior to the exam, simulating real-life financial planning scenarios. This type of case study exam could be well suited to visual and auditory learners with trainer led sessions focusing on key areas of the case studies.  

LIBF: Blends multiple-choice exams with coursework based on a fact-find scenario, giving candidates four weeks to complete their assignments. This approach suits individuals who thrive in practical, application-based environments. This hands-on approach works well with a kinaesthetic learning style in which individuals research and construct a report based on a provided scenario. 

CISI: Offers three multiple-choice exams, focusing on knowledge retention and application. This format could be suitable for those seeking a concise qualification pathway, those who are comfortable with self-study via reading, or those considering a blended online learning program which includes focused reading material, videos and practice questions. 

“With all three pathways, my top tip is to really understand the exam structure and doing as many practice questions as possible, especially for the multiple choice exams. One of the best ways to learn is by doing; practice exam papers and questions are really powerful learning and revision tools.”

What if I already have a financial qualification? 

For individuals coming from a financial services background, bridging qualifications can sometimes be an option. For example, those with a Chartered Financial Analyst (CFA) qualification can achieve a Statement of Professional Standing (SPS) through CISI’s single financial planning and advice examination. However, the three main bodies – CII, LIBF, and CISI – remain the primary options for aspiring financial advisers.

In additional to the qualification, you’ll need a Statement of Professional Standing (SPS) too.  “An SPS is crucial for anyone holding a regulated diploma, allowing them to provide advice legally. Think of it as a driver’s license for financial planners – you need to renew it annually and undertake continuous professional development (CPD) to maintain it”, Lewis explains.

What study support is available for each qualification?

All three bodies provide comprehensive study resources, often supported by external training providers. For example, the CII offers a range of tools, including practice papers, video tutorials, and apps for tracking progress. Providers like Redmill Advance deliver blended learning approaches to cater to diverse learning styles.

“Other bodies like the LIBF provide optional tutoring and one-to-one support for an additional fee, which is a popular choice for apprentices or those newer to the profession,” Lewis explains.

Free resources such as Brainscape’s flashcard portal are also available. Many providers offer structured study programs lasting six to nine weeks, with flexible options for self-paced learning.

Difficulty levels and time commitment

While the Level 4 qualifications from all three bodies are standardised in terms of difficulty, success rates vary based on the candidate’s approach and preparation. Technical exams often have lower pass rates, but high-quality training resources can bridge the gap.

“On average, completing the qualifications takes between nine and 14 months, with CISI offering a shorter timeline of six to nine months”, says Lewis.

How to choose the right qualification?

Lewis explains that deciding which qualification to pursue depends on several factors:

•    What’s your learning style? Do you prefer theoretical study or hands-on, practical learning?
•    What are your career goals? Do you need a deep dive into financial planning or a broader introduction to the profession?
•    What support do you need? Are you self-sufficient or do you require additional tutoring and resources?
•    What’s your timeframe? Are you committed to completing your exams in a shorter space of time? 

Lewis’s parting advice is as follows: “I’d advise researching thoroughly and seek advice from professionals. Don’t rush into a decision based on hearsay – your choice should align with your unique strengths and ambitions.”

If you would like to know about about the qualifications needed to become a financial adviser, visit our guidance page here.