To complement the FPA’s new strategic direction, the Association announced a new education strategy which it says underpins the future of the profession.
Aligning to its new membership framework, all new FPA practitioner members must hold a degree and have completed one year’s professional practice under supervision (PY). They are also required to complete the FPA’s certification program.
Setting the approved degree qualifications for entry to the FPA’s Certified Financial Practioner (CFP) program will be the responsibility of the Financial Planning Education Council. In an Australian first, the FPA board have approved the establishment of the council, which will be made up of university academics, the profession, industry participants and other stakeholders.
FPA Head of Professionalism, Deen Sanders said: “The FPA has long believed that RG 146 is inadequate as a benchmark for financial planning practitioners and is committed to delivering its own answer to the problem. This strategy is about educating professionals and so will focus well above RG146 or other regulatory initiatives that establish the minimum legal requirements for advisers.”
“Education alone does not make someone a professional, but by aligning education with professional achievement and commitment we take a big step towards higher professional standards.
“Education is a vital first step in the journey to practising as a professional. Clear qualification requirements combined with consistency and quality education give confidence to the professional and the consumer communities, as well as to regulators”, he added.
This year 125 practitioners successfully completed the Certified Financial Planner (CFP) certification program. Out of the 213 new and repeating financial planners participating, 125 passed, which is an overall pass rate of 59%.
“The pass requirements for Certification have been set extremely high to ensure only the best quality professionals carry the CFP designation,” said FPA CEO Mark Rantall. “Over the last 7 years, the average percentage of members who successfully pass the requirements has been 51%, so this higher pass rate of 59% reflects the increasing standards of members undergoing CFP certification.”
