- I expect I'll need to achieve additional professional/tertiary qualifications to meet the new standards (38%)
- I still have no idea what I'll be required to do! (36%)
- I'm degree qualified but expect I'll need to undertake bridging courses (19%)
- I'm qualified in a relevant degree and am confident I will already meet the new minimum standards (7%)
Our latest poll is seeking to gauge ‘the mood of the meeting’ when it comes to what proportion of the adviser community thinks it needs to undertake more studies in order to qualify for the minimum standards that will be required of them under the new professional standards legislation.
Of all the issues we’ve reported in the almost ten years we’ve been talking to advisers, the journey towards new minimum professional standards and its accompanying debate appears to be one of the most complicated and frustrating that advisers have been asked to address and to navigate… and there have been a lot of key issues we’ve reported!
Because the ‘i’s still need to be dotted and the ‘t’s crossed in terms of exactly what standards the FASEA Board will require of existing advisers, we’re only seeking your best guess, given what you know to date.
Last week, we ran an article on the approach being taken by the AFA in arguing for the extent to which a number of existing industry qualifications should be taken into account by the FASEA Board when making its final determination about what further studies each adviser should be required to undertake and which minimum standards must be met (see: Advisers With Degrees… see also: Existing Advisers Will Require Study…).
Some advisers are comfortable with where the minimum professional standards legislation debate is heading. Other advisers have indicated they will simply leave the sector – either retiring or exploring different careers, rather than undertake more studies, while many others appear to be uncertain and/or confused about what it will mean for them.
At the moment, we’re interested in whether you think you’ve got things right in your own mind about your own circumstances when it comes to complying with the new minimum standards and if so, what that will mean for you.
As always, it’s now over to you to continue the conversation and we’ll report back to you next week…
Presently, there seems to be NIL recognition of DFP or ADFP qualifications nor years of experience in any guidance papers the FASEA has issued. When talking to my professional friends about was is now law they all say it’s crazy and not possible. All other industries would use RPL as the yard-stick. Com’on FASEA make sure you set reasonable guidelines and if not, can you tell me where I can send an invoice to obtain a refund for my ADFP qualifications… would it be the people I received it from or ASIC?
One AFSL holder demands a degree in psychology as well as all the other qualifications before advisers can pass through their hallowed doors.
The world is full of educated theorists who wander hallways talking to themselves, convinced of their superiority, while living lives of fantasy.
Seems to be the new reality.
Have a 3 year Accounting Qualification, ex- CPA, a DFP 8 subjects, Cert. IV Mortgage Broking, CFP and relevant CPD since 1998 but because most done before 2002, Accounting in 82, I have been told I need to do 6 subjects. Most of these are the Old DFP 1 to 6 but as Kaplan advised they are at a different level. Bureaucrats designing and those who do not have a clue, partly protected by those purporting to represent us. I know of many close to my tender age of 58 saying why bother and will exit the industry. I want to stay as I enjoy what I do but the equivalent of 9 months full time study is too much..
Can see a mass exodus of experienced, honest, decent advisers leaving the industry. Well done to the AFA, FPA, FSC, insurers, union funds ASIC and O’Dwyer you have destroyed small businesses and retirement plans for thousands of dedicated people and all without a single advantage to a consumer. I am sure you are all proud you have achieved your goals!
There’s so much information and confusion out there, I’ll do my best to explain the legislation in simple terms, as explained to me by my dealer group.
My understanding is this for existing advisers (5 years+ as an Authorised Rep) with NO relevant degree:
Advisers essentially require a ‘Graduate Diploma’ in Financial Services. Also known as “1-16” (where 1-4 is the DFP, 5-8 is the ADFP, 9-12 is the Grad Cert and 13-16 is the Grad Diploma).
Those who did their DFP/ADFP in the past 10 years may get exemptions for the Graduate Diploma. Those who completed them more than 10 years ago are unlikely to get exemptions.
If you’re unsure, your dealer group should be able to explain what you are required to do based on current legislation.
Overall and long term I believe this is a good change for the industry, but they haven’t gone about it in the best way. The principal adviser in my practice has been in the industry 30 years and gives good quality super and risk advice. A graduate diploma won’t change that… Being in his mid 50’s always envisioning himself working to mid-late 60s, he will effectively be forced out of the industry. Why complete 16 subjects (up to 3-5+ years of part time study) for the sake of continuing in the industry another 2-3 years?
I hazard a guess that the majority of advisers leaving will also be in that age group and also business owners. Can we expect literally hundreds if not thousands of businesses going on sale in the next few years? What is this going to do to the value of existing businesses? The old “2-3x ongoings” won’t hold true when the market is saturated. Advisers will have to make the decision to get out now and see if they can get their 2-3x or work longer and possibly only get 1-2x in the future. A great opportunity for young advisers buying in but not only are older advisers going to be forced to retire earlier than expected, the value of their businesses when they are forced to retire in 2024 may halve!
Just my take on it… Interesting times ahead either way.
The whole thing is a crock of S%$^T What has happened is these people from all levels of Government have jumped on the bandwagon and decided they don’t like what’s been achieved in the past by numerous advisers and in most cases at great expense BECAUSE THEY DONT UNDERSTAND ANY OF IT !!! LETS START AGAIN ??
The tertiary institutions Universities and Kaplan must be rubbing their hands together after this !! What a win fall.
There is no doubt most older advisers will leave the industry before 2014 unless change happens having been fed up with the constant “meddling” by the uneducated in this industry. { What a waste of experience that can only be learnt over time and with patience }
Beware the rest you could all end up the most educated people on the dole cue.
There is another option which should be included in your poll which I think will actually cover thousands of advisers…
“I have a degree in something other than financial planning, and have already completed the CFP education component which I expect will be confirmed as an approved bridging course”.
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