Following the launch of its new Code of Professional Practice, the FPA has released a consultation paper setting out six expectations that it says will reset the education framework for financial planning.
Our members are frustrated that too many authorised representatives simply complete government mandated education and training requirements described in the current model of RG146 and then call themselves a financial planner
The FPA believes that consumers, industry and the profession have lost confidence in the way RG146 has been applied to determine the entry level for the financial planning profession, with FPA CEO, Jo-Anne Bloch, remarking “Our members are frustrated that too many authorised representatives simply complete government mandated education and training requirements described in the current model of RG146 and then call themselves a financial planner.”
The Association believes its consultation paper will generate much discussion across the adviser community.
One of the six expectations calls for a minimum requirement of a tertiary financial planning qualification by 2015 for all new entrants to the financial planning profession.
The FPA will consider submissions and consult widely before it determines how it will address minimum education requirements from 2015 for current financial planning professionals.
The six expectations are:
- By 2015 FPA would like all new entrants who want to become professional financial planners to have as a minimum a tertiary qualification in financial planning
- By 2012 FPA would like to have developed with the education sector a commonly recognised curriculum for financial planning based on the Financial Planning Standards Board curriculum topics
- FPA wants to work with ASIC, the government and the profession to develop an objective assessment mechanism that instils confidence in financial planner entry competence
- By 2012 FPA would like all newly qualified financial planners to have undertaken at least one year of full time supervised work in client facing activity following their formal tertiary qualifications, before being able to hold themselves out as a financial planner
- By 2012 FPA would like to see all education programs providing a clear entry pathway to professional designation
- By 2011 FPA expects that all Continuing Professional Development (CPD) should include mandatory training in ethics, and FPA calls on Australian Financial Services Licensees to dedicate resources and attention to the supervision of CPD to ensure it focuses on professional alignment, rather than simply compliance with RG 146
“Our consultation paper sets out a very broad set of ambitions, and is intended to generate conversation and positive debate,” said Ms Bloch.
Advisers can click here to access the FPA’s Education Expectations for Professional Financial Planners.
Submissions are open until 31 March 2010, and can be emailed to:
professionalstandards@fpa.asn.au
Alternatively, written submissions can be sent to:
Professional Financial Planner Education Consultation
The Financial Planning Association of Australia Limited
GPO Box 4285
Sydney NSW 2001
