April 12, 2018
The FPA has questioned the guidance provided to FASEA in rejecting study related to the CFP designation while accepting unrelated qualifications under the new proposed education standards.
The Association has asked its members for feedback on the new proposals and reported that it received 1,700 responses in the first 24 hours.
The FPA stated it remains concerned the FASEA proposals were ‘over-engineered’ and reduce the access to advice for consumers, and member feedback had confirmed this concern.
FPA Chair, Neil Kendall the financial planning sector had spent 20 years building ‘a culture of learning’ among practitioners and the proposed FASEA standards, including a refusal to acknowledge study completed for advance diploma and the CFP designation, would undermined that culture.
“Our members are outraged and in disbelief that FASEA can ignore the financial planning specific study done in the CFP program yet recognise a law degree as a relevant financial planning qualification,” Kendall said.
“It is clear that the FASEA board have not been getting the right guidance on education standards“
“A financial planner with a Business Degree, eight subjects in the Advanced Diploma, and five Masters level subjects in the CFP program is treated as unqualified in the latest FASEA proposal, but an existing planner with a law degree only has to complete a non-technical bridging course to meet the standard,” he added.
“It is clear that the FASEA board have not been getting the right guidance on education standards,” Kendall said, adding the new proposals seem to overlook the requirement for every adviser to pass an exam, which would act as a failsafe in picking up anyone without appropriate knowledge.
“There is broad acceptance that those without university degrees need to undertake further professional study, but those with degrees and further financial planning specific study are aghast at being told by FASEA they are essentially unqualified,” Kendall said.
The FPA stated it had asked FASEA for clarification on the new proposals but had yet to receive a response and, while welcoming the appointment of Dr Mark Brimble as acting Managing Director of FASEA, was urgently arranging to meet with him.
In related news, the FPA had appointed Western Sydney University Associate Professor, Sharon Taylor as the Chair of the Financial Planning Education Council (FPEC).
Taylor was previously the Deputy Chair of FPEC for six years and moves into the role after Dr Mark Brimble stepped down from chairing FPEC on 14 February following FASEA’s decision to adopt FPEC’s framework and course approval list.