The nationwide Certainty Advice Group has responded to Treasurer Morrison’s proposal for more stringent compliance accreditations.
In his recent blog post, Certainty Advice Group founder Jim Stackpool sparked debate in the industry by proposing an alternative to the legislation. Hands-on experience, similar to an accountant’s ‘professional year’, could tackle the rapid changes in industry: in particular the fast-growing technology solutions transforming the industry.
Certainty Advice Group senior partners and advisers respond to Recommendation 25, and to Stackpool’s calls for reform:
1. Degree entry is compulsory in most other professions
Todd Stanford of William Buck says “Doctors, engineers, actuaries, and all other type of professions have to be degree-qualified as a minimum.” He agrees with Terry Powell of PF Private Wealth that degree qualifications would raise industry – and therefore consumer – perceptions. “If we’re sincere about making financial advice a profession then it does need to raise the barriers to entry,” says Terry.
“I would struggle to hire someone who wasn’t degree-qualified who wanted to be a financial planner,” says Travis Martin of TWD. “Ideally I’d look for a financial planning degree, but if not,Commerce or Engineering – something where they teach the analytical processes of problem-solving.”
2. Practical skills should be part of compliance
“Saying you’ve got another degree doesn’t make you a better adviser, and it won’t make you more ethical, says David Murdoch of Paxton Bridge Financial. “A lot of graduates are technically very good, but struggle at first with their commercial sense, and issues like strategic management. That’s where I think any accreditation should be far more practical. A curriculum could include disciplines such as ethics, project, client and strategic management.”
3. A ‘professional year’ could gain valuable experience
“The technical side is very important,” says Colin Benvenuto of Emerge Financial. “But it doesn’t solve the issue of professionalism and ethics. That’s where the ‘professional year’ could really dig deep: What is your contribution to community, to people, family and to generations through your work?”
4. Restructure the industry first
“While getting a degree is important, it’s not going to solve the ethics problem in our industry,” says Travis Martin. “We also need to look at the way the industry is structured, which is around products. We need to realign client outcomes in terms of compliance. Not products. All this, including degrees and ethics, will contribute towards professionalising our industry.”
Scott Farmer of Bravium notes that “at the end of the day, the client engagement process is most important. It’s the focus on getting results and being able to represent value that’s important. That’s not a training or a compliance issue, it’s really a cultural issue in our industry.”
Source: Certainty Advice Group – (02) 8966 9135
