October 16, 2018
Do you think FASEA's qualification requirements for existing advisers are fair and reasonable?
- No (76%)
- Yes (19%)
- Not sure (5%)
Our latest poll seeks your input on whether you think FASEA’s minimum education requirements for existing advisers is fair.
This poll follows the announcement at last week’s AFA National Adviser Conference that recognition and credits would be given for education course work taken by advisers in the process of attaining the AFA’s FChFP or the FPA’s CFP designations (see: FASEA Win For Advisers).
Here’s what Assistant Treasurer, The Hon Stuart Robert, shared with advisers last Friday:
- Existing advisers with no degrees will not be required to undertake a bachelors degree but will be required to undertake eight subjects equivalent to a Graduate Diploma by 1 January 2024
- Of those eight subjects, advisers who hold an existing Advanced Diploma in Financial Planning will receive two credits out of the eight subjects or credits required
- An additional two subjects will be credited to existing advisers in recognition of the industry education course work conducted to attain the FPA’s CFP qualification or the FChFP qualification provided by the AFA, provided these qualifications were obtained after a certain date
The Minister confirmed that advisers who had completed advanced diplomas and the CFP or FChFP industry accreditations will have already met four of the eight mandatory units and would only be required to take units on Ethics, the Corporations Act, Behavioural Finance and one other subject of their choice.
While we reported the Minister’s comments as a ‘win’ for advisers, the comments we’ve received following the release of our story have been almost entirely negative.
One adviser has argued that this ‘win’ is akin to reducing a 100-metre race to 99.99 metres. Another has commented:
“In 2004 they change DFP to ADFP. If you did ADFP you now get two credits for the new requirements but advisers like myself who studied earlier get nothing.“
Elsewhere, one adviser made the point that studying for and passing a unit on Ethics will only serve to prove how good a person is at passing an Ethics exam, without demonstrating the adviser’s actual ethics when it comes to serving their clients.
We’re still following-up the details on a few points in relation to how far back FASEA will recognise prior learning, and the Assistant Treasurer has noted the remaining details of FASEA’s requirements will be released in the coming weeks.
In the meantime, though, based on what you know today, where do you stand on the question of whether these new requirements represent a solution that’s fair and reasonable for the approximately 25,000 existing authorised representatives who will be transitioning to the new minimum education regime by 1 January 2024.
Tell us what you think and we’ll report back next week…