November 22, 2018
FASEA has released two more legislative instruments related to changes to education and professional standards, lifting the total number of instruments open for final consultation to five out of seven standards covered by the Authority.
The latest standards released relate to Continuing Professional Development (CPD) and the adviser Code of Ethics and follow the release of those related to education pathways for all advisers, the professional year for new entrants and the introduction of the term ‘Provisional Financial Adviser’ for undertaking the professional year (see: Advisers Given Limited Time to Comment on FASEA Proposals).
FASEA released many of the details related to the instruments in a Standards Summary on 17 November (see: FASEA Releases Updated Education, Exam Guidelines) but key details for the CPD instrument include:
- 40 hours of CPD each year (reduced from the original proposal of 50 hours)
- 70 percent of CPD will need to be approved by an adviser’s licensee
- minimum hours for CPD categories are
- Technical – 5 hours
- Client Care and Practice – 5 hours
- Regulatory Compliance and Consumer Protection – 5 hours
- Professionalism and Ethics – 9 hours
- The balance up to 40 hours will consist of qualifying CPD
Key details for the Code of Ethics instrument include:
- the Code will cover five core values: Trust, Competence, Honesty, Fairness and Diligence
- the Code will contain 12 standards which will be monitored by an ASIC approved code monitoring bodies
- Standards will cover: ethical behaviour, client care, quality process and professional commitment
The consultation period in which FASEA will receive feedback on the CPD instrument closes on 7 December 2018 and the period for feedback on the Code of Ethics instrument closes on 19 December 2018.
FASEA has yet to release the legislative instruments related to the treatment of Foreign Qualifications and the Adviser Exam but the Standards Summary indicates the former will be released by the end of this week and the latter by the end of next week, and both will have a two week consultation period.