The Association of Financial Advisers (AFA) welcomes the introduction of the Professional Standards Bill (the Bill) today as another step towards recognising financial advice as a profession and providing greater certainty for advisers.
In introducing the Bill to Parliament this morning, the Minister for Revenue and Financial Services Kelly O’Dwyer, acknowledged the contribution of the industry during the consultation process and the significant role that professional associations will play in implementing these reforms and assisting advisers.
AFA CEO Brad Fox said the Government’s progress is good news as, “the future uptake of financial advice will be supported by this important industry reform.”
The Bill proposes existing advisers transition towards degree equivalency and complete an exam to be developed by the future Standards Body as well as ongoing professional development; and that new advisers be degree qualified and supervised during their provisional year.
“We will continue to seek sensible transition pathways such as the Fellow Chartered Financial Practitioner (FChFP) designation for existing advisers but it is important for all advisers to take note of the key transition dates and start early on upgrading their qualifications,” Mr Fox said.
Recent amendments have also included:
• Flexibility to ensure that new advisers learn the craft of advising from experienced financial advisers during their professional year
• The Professional Standards Body to include a Board seat for a practising educator (i.e. with current, relevant experience)
• All advisers must do an exam. Importantly, no carve-outs for large groups like accountants and no exemptions for a select highly qualified few – making it fair for all
• Enabling of bridging options for those financial advisers with overseas qualifications
• Improved information sharing between compliance schemes, licensees, advisers and regulators
The AFA will be reviewing the detail of the Bill over the coming days, seeking further feedback from members. The AFA Professional Standards Working Group has also begun work to ready the AFA to attain a registered compliance scheme to monitor and enforce the future Code of Ethics.
“The AFA is well positioned to help members through the transition to becoming a widely understood and respected profession,” Mr Fox said. “We have developed a progressive environment to ensure that today’s financial advisers become recognised as tomorrow’s professionals.”
Mr Fox said as advisers prepare for the future Professional Standards legislation, and consider additional imperatives impacting on business models, there is a great opportunity to benefit from these forces of change.
“There is a strong need for advisers, practice owners and licensees to interpret the new paradigm for financial advice and adapt,” he said. “The AFA’s Adaptive Change framework recognises that when the paradigms shift for an industry or market place, the businesses in that market must change in order to survive. The AFA has communities of practice in place and educational pathways to help advisers old and new, to experiment with business models, value propositions, advice delivery and practice efficiency. This legislation is another important forward step in achieving wider public participation in financial advice and AFA members will be ready to serve them.”
