The new code of conduct for financial advice makes it clear that the level five certificate in financial services is the new competence standard for those delivering advice.

But it also provides for what code working group chairman Angus Dale-Jones called a "limitless" number of ways that advisers could prove they were at that standard without having the qualification itself.

David Greenslade, of Strategi Institute, said his organisation's experience with helping advisers who wanted to go down the alternative qualification route was that it was not recommended.

"As past experience indicates it is far from easy, it is time consuming, frustrating and expensive for those who wish to undertake the process of applying for recognition of prior learning and experience.

"Over the years, we have not found anyone who has existing qualifications which directly cross credit to the NZCFS5 qualification so additional study is still required. The cheapest solution for those who believe they already have the competence, knowledge, and skill to meet the NZCFS5, is to undertake the online qualification and just focus on the assignments. If they start and complete within eight months and are eligible for the Strategi Institute success rebate, then the total investment is under $1000 plus GST."

He said level five was a good starting point for the industry.

"Attaining the qualification and any applicable additional specialist strands will be the cheapest and most defendable method for the vast bulk of the industry."

He said more clarity would be welcome on how an adviser could rely on a financial advice provider's procedures, systems and expertise to fill in gaps in their own competence.

"Strategi Institute believes that relying exclusively on a FAPs procedures, systems and expertise will be an expensive undertaking for most businesses and may only work adequately if the FAP has a narrow product range. It is likely only the larger end of town may adopt this approach and even then, it is likely they will ensure many of their staff have attained the level 5 qualification."