To obtain a Statement of Professional Standing (SPS), you must first meet the Financial Conduct Authority (FCA)'s professional and ethical standards required of a retail investment adviser. Once these rigorous standards are satisfied, you can then apply for your SPS from an accredited body.
What is a Statement of Professional Standing (SPS)?
A Statement of Professional Standing (SPS) is a certificate issued by an FCA-accredited body that confirms a retail investment adviser has met and maintains the professional and ethical standards set by the regulator. It demonstrates that an adviser is competent, adheres to a code of ethics, and is committed to ongoing professional development.
Who Needs an SPS?
The SPS is a mandatory requirement for retail investment advisers operating in the UK. This includes professionals who provide advice on:
- Investments: Stocks, shares, bonds, funds.
- Pensions: Personal pensions, workplace pensions (excluding basic guidance).
- Other complex financial products that fall under the scope of retail investment advice.
Key Requirements for Obtaining an SPS
Getting an SPS is a multi-step process focused on demonstrating expertise, ethics, and commitment to client best interests.
1. Meet FCA Professional and Ethical Standards
This is the foundational step. Advisers must:
- Hold an Appropriate Qualification: Possess a qualification at Level 4 or above of the Regulated Qualifications Framework (RQF), relevant to the advice they provide. Examples include the Diploma in Financial Planning (DipPFS) or the Investment Advice Diploma (IAD).
- Adhere to a Code of Ethics: Comply with the ethical standards set by the FCA and the accredited body. This typically covers principles like integrity, honesty, and client-centricity.
- Undertake Continuing Professional Development (CPD): Complete a minimum number of CPD hours annually (e.g., 35 hours) to keep knowledge and skills up-to-date. This includes structured and unstructured learning relevant to their role.
- Pass Annual Checks: Accredited bodies conduct checks to ensure advisers continue to meet the required standards.
2. Application to an Accredited Body
Once you have met the FCA's professional and ethical standards, you can apply for your SPS. It's crucial to note that you may only hold an SPS Certificate from one accredited body at any given time.
Common Accredited Bodies include:
- The Chartered Banker Institute: An example of an accredited body that issues SPS Certificates.
- The Chartered Insurance Institute (CII): A widely recognized body in the financial services sector.
- The CISI (Chartered Institute for Securities & Investment): Another key professional body.
The application process typically involves:
- Providing evidence of your qualifications.
- Confirming your commitment to their code of ethics.
- Demonstrating your completion of required CPD.
- Paying the applicable application and renewal fees.
Maintaining Your SPS
An SPS is not a one-time achievement; it requires ongoing commitment:
- Annual Renewal: SPS certificates are typically valid for one year and must be renewed annually.
- Ongoing CPD: Continued completion of CPD is essential to demonstrate up-to-date knowledge and skills.
- Adherence to Standards: Continuous compliance with the ethical and professional standards of both the FCA and the accredited body.
Benefits of Holding an SPS
Holding an SPS signifies more than just compliance; it offers several advantages:
- Regulatory Compliance: It is a legal requirement for providing retail investment advice in the UK.
- Public Trust: It assures clients that they are dealing with a qualified and ethical professional.
- Professional Recognition: It enhances your credibility and standing within the financial services industry.
- Demonstrates Competence: Confirms your commitment to continuous learning and high standards.
Summary of SPS Acquisition
| Aspect | Description |
|---|---|
| Purpose | Confirms a retail investment adviser meets FCA professional & ethical standards. |
| Who Needs It | Retail investment advisers in the UK. |
| Prerequisites | Level 4 RQF qualification, adherence to code of ethics, ongoing CPD. |
| Application Process | Apply to an FCA-accredited body (e.g., Chartered Banker Institute, CII, CISI) after meeting standards. |
| Key Limitation | You can only hold one SPS Certificate from one accredited body. |
| Maintenance | Annual renewal, ongoing CPD, continuous adherence to ethical and professional standards. |
| Regulatory Authority | Financial Conduct Authority (FCA). |
| Benefits | Regulatory compliance, enhanced client trust, professional recognition, demonstration of competence. |
For more detailed information on specific requirements and accredited bodies, it is recommended to consult the official websites of the Financial Conduct Authority (FCA) and the respective professional bodies.
