A lot of attention has justifiably been focused on the Future of Financial Advice (FoFA) changes, which start today. As a whole, FoFA represents arguably the greatest shake-up of regulation in the financial planning space.
But an equally, if not more, significant change also takes place on the very same day. From July 1, it is necessary to hold an appropriate tertiary degree before an individual may become a member of the Financial Planning Association of Australia (FPA).
It may not seem like a big change in isolation, but with the passing of this deadline the final piece in the professional association puzzle drops into place –the piece related to entry-level educational requirements.
With this final piece comes the creation of an organisation that can tick every box necessary to be called a professional association. And as a direct result of a true professional association being created, it can be said for the first time that financial planning in Australia has become a profession.
Deen Sanders, the chief executive officer of the Office of the Professional Standards Councils, and a former chief professional officer of the FPA, says it is “a very fair comment” to say that the FPA has finally attained professional-association status.
“On any objective measure of what a professional association is, the FPA would meet that requirement,” said Sanders.
“There are a number of legitimacies to becoming a professional association. If you take the view that it has all of the appropriate ingredients and meets all of the requirements…for what a professional association is…then the FPA meets it.”
