More than half of Professional Planner’s surveyed readers expect to have to take on at least some additional education to meet the new standards to come from the Financial Adviser Standards and Ethics Authority (FASEA).
New and existing financial planners don’t know yet what specific degree requirements they will have to meet. A poll conducted in June asked readers whether they expected their current education levels to be sufficient; 54 per cent said they expected to have to complete further education, while 16 per cent said it was too early to tell.
The remaining 30 per cent said they expected their current level of education to meet the expectations of the new body.
FASEA, established in April this year, has been tasked with developing the new standards for planners after the Financial System Inquiry and Parliamentary Joint Inquiry heard planners were advising retail clients with the equivalent of four days’ training. FASEA’s mandate includes formalising the education requirements – including an industry-wide exam – as well as establishing a code of ethics and an ongoing professional development framework.
The detail around the education requirements is still being worked out by FASEA. The education benchmarks for new financial planners will come into effect from 2019 and existing planners will have to complete their requirements by 2024.
The Financial Planning Association has proposed a hybrid qualification model, which would resemble a 100-point identification check, to take into account relevant education existing planners have already completed. For example, under the model, an adviser could use their continuing professional development and relevant, pre-approved components of a bachelor’s degree to make up the 100 points.
In a recent column for Professional Planner, FPA head of policy and government relations, Ben Marshan, said 84 per cent of its members either agreed or strongly agreed with the propo
