The draft code of conduct for the sector sets the certificate as a base level qualification. It looks likely that all advisers who are currently registered financial advisers will need to obtain it.

Rod Severn, former chief executive of PAA and now in that role for Professional IQ,  said it was a good standard.

Professional IQ would need more resource to cater for demand for the qualification, he said. "The college will be expanding its operations as this moves forward."

David Greenslade, of Strategi, said his firm was already able to cater for 3000 to 4000 students a year.

It made use of contractors to respond to demand patterns and was taking on more full-time and contract staff.

"We are being quite innovative with the way we are handling classroom-based training. We are partnering with product providers and some adviser networks and ensuring their trainers are accredited with our products ... they can deliver and we provide the content and assessment."

He said getting everyone to the level five standard would be good for the industry, but it would eventually need to go further.

"Eventually we will need to get to international standard. It has to go higher but we can't do that in one go."

Severn said he was concerned about the lack of detail on CPD requirements. The draft code proposes a requirement for all advisers but does not define how many hours they would have to do to meet it.

"That seems to be a little open to interpretation, it should be tightened up... I think everyone should be required to do a minimum amount of CPD."