March 6, 2018
This is my status leading into the new minimum Professional Standards regime:
- 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%)
In a rare second-week turnaround, our latest poll results suggests more advisers may now be developing a clearer picture of what their future minimum educational requirements will be.
After two weeks running our poll, the overall result can be seen above. If we split these results, however, there is a rare significant difference comparing adviser responses in weeks one and two.
One reason for this difference may relate to industry activity and more adviser engagement on this critical issue. We initially released this poll on 21st February and during the course of its first week (where most votes were received in the first few days) the Association of Financial Advisers spoke to around 1,300 advisers in four states as part of its 2018 Connect Tour.
The second-week poll results, which followed the completion of the AFA’s main roadshow series, delivered a much different result to the same question:
But the week 2 poll results delivered this outcome:
One of the key presentations to advisers in all states except NSW was made by AFA GM Policy and Professionalism, Phil Anderson. Anderson outlined to his audiences an analysis of the current ‘state of play’ on minimum education standards, including this chart:
|Education Category||What we Know||Probable Action|
|Financial Planning Education Council Approved Financial Planning Degree||Already approved||No Further Action Required|
|Non-approved Financial Planning Degree||Education Institutions can apply to FASEA for retrospective recognition||Wait to see what happens, however contact your education provider to make sure that they are going to apply|
|Relevant Degree (Commerce, Finance, Business, Accounting, Economics or Law)||FASEA will make available bridging courses||Wait to see the detail on the bridging course options, which is expected to be noticeably less than doing the full Graduate Diploma|
|Unrelated Degree (Arts, Science, Teaching etc)||FASEA will make available bridging courses||Wait to see the detail on the bridging course options, which is expected to be less than doing the full Graduate Diploma|
|No Tertiary Qualifications||FASEA have proposed an eight subject Graduate Diploma||You can start now, however, it is probably better to wait until FASEA have approved some specific financial advice Graduate Diplomas|
AFA members were also updated via email earlier in February, but it appears Anderson’s roadshow message may have had an impact, with many more advisers in the second week of our poll having a more definitive idea of where they’re positioned in relation to their future education requirements.
The broader message to advisers from Anderson and the AFA is to wait a while longer. Anderson said he believed most advisers who would be required to undertake additional educational courses would be able to achieve that outcome. He encouraged AFA members and other advisers to wait to until the details on the nature of bridging courses were released before making any decisions about their future.
Those details will probably emerge in the second half of 2018 because the Financial Adviser Standards and Ethics Authority will be consulting industry about its proposed standards until Friday 29 June.
Meanwhile, we’ll continue this poll for one more week if you haven’t yet voted or if you would like to contribute to the ongoing debate on issues surrounding the new minimum Professional Standards regime…