AFA Supports AMP on lifting adviser standards

The Association of Financial Advisers (AFA) has endorsed measures announced today by AMP relating to professional adviser development, following the release of AMP’s financial results and accompanying statements.

AFA CEO Brad Fox said the measures align well with the AFA’s vision for professional standards and contain an appropriate mix of practical and theoretical pathways for advisers. “The requirement for AMP advisers to hold an appropriate designation by the end of 2019, including the AFA’s Fellow Chartered Financial Practitioner (FChFP), which earns one-for-one credits towards a Masters of Financial Planning, is a proactive position that meets public, government and adviser expectations on raising standards,” he said.

When considering support for the announcement, the AFA was careful to ensure the measures would provide appropriate solutions for practising financial advisers who don’t currently hold a degree. “As the required education standards for existing financial advisers will change, we needed to feel confident the measures offered a pathway for highly experienced advisers who don’t currently hold a degree,” he said. “Just as importantly, we were careful to ensure that completing the study provided relevance and commercial value to each adviser as a return on the time and money they will invest in earning the qualification. We were satisfied on both counts.”

Mr Fox said it is significant that the AFA’s FChFP has been included by AMP. “The FChFP’s point of difference is that it combines masters-level technical content with practical business projects that help an adviser focus on not only delivering quality advice, but also with implementing an appropriate advice model,” he said.  “It is ideal for both established and developing advisers and the feedback we have received from AMP advisers who have completed the designation to date, is that it represents exceptional value because it improves both their technical skills and their business performance.”

Mr Fox said the five-year transition time announced by AMP is appropriate.  “Five years gives advisers time to plan around the demands on their personal and business time and to implement transition strategies while also adapting to the requirements of the FoFA amendments,” he said. “Importantly, we believe those who choose to undertake the FChFP will experience improved business outcomes as soon as they start to implement the course work.  The business projects are a practical way an adviser could implement the FoFA changes and other advice practice improvements within their business. We anticipate a number of advisers will step forward and take a leadership position and enrol in the very near future.”

Mr Fox said for some time now the financial advice profession has recognised the need to lift education standards.  “The actions of AMP are a positive trigger to lead the entire financial advice profession further down the path towards professionalism. The time has come to take the leadership on this issue and we will have more to say on this over the next few weeks through our submissions to the Financial System Inquiry and the PJC Inquiry into proposals to lift the professional, ethical and education standards in the financial services industry.”