AFA national president Marc Bineham said that the national body is committed to helping its members pass the new requirements but expressed concern over what shape that would take.
“We need to over the next few months still argue with what that is going to look like. At the present time the exam, for example is up to four hours, closed-book exam, no study materials, no practice material and the subject matter will be designed after the exams have already started,” he said.
Mr Bineham said the professional standards legislation the industry had to meet in such a short time is unprecedented, but they had to accept them.
“You can’t keep fighting something that’s legislated. There has to be acceptance,” he said.
Mr Bineham’s comments come at a time where the industry is facing new education requirements, both legislative and within industry groups.
The FASEA changes have caused much controversy with Peter Johnston, executive director of AIOFP, saying that it was destroying the industry.
“In the meantime, adviser practice values have plummeted, stress levels immeasurably increased, and family life disrupted by the unfortunate behaviour of some FASEA board members and their industry allies,” Mr Johnston said.
Mr Bineham said he understood why advisers were being anxious and could understand why some advisers had chosen to no longer be advisers because of it.
“A lot of advisers out there are saying ‘I’m in my 50s, how bad would it look that I go out because I failed the exam? I do this exam and the last part of my career is I lost my job because I failed an exam’,” he said.
The AFA is committed to helping advisers get the qualifications, but Mr Bineham accepted that ultimately not everyone would come on the journey with them.
“The AFA is here to bring those who want to come along on the journey through and we will do our best. There will be a lot that will struggle but if they are accepting of it and they realise they’ve just got to do this, we will help them,” Mr Bineham said.
“If there are ones that will not accept this, then the legislation is clear. We will help them try to understand what they need to do, but if they are still not accepting of that we can’t help.”
A previous version of this article said advisers must accept FASEA changes.
Head over to Finni to view the latest financial advice career tips and advice.
The only option we have is to leave these institution owned associations and join a union as recommended by the AIOFP
“You can’t keep fighting something that’s legislated. There has to be acceptance,” Bineham says. WHAT A COP OUT. If legislation is BAD then it MUST be changed. You don’t just go along with crap legislation. No wonder our industry is in a mess with fools like this “helping us”.
The FPA do not have its members interest at all, 100% for sure. I was at the recent road show in Perth and went up to Neil and asked a question on The up coming FASEA changes as was somewhat taken back by his comment. I said to Neil that the FPA is there to represent us their members and he turned around and I quote ‘No we are not, we are there to represent the consumers that is our main priority’ I said then there is no point talking any more and walked away. After the embarrassment with Sam Henderson at the RC the FPA have gone into damage control and only thinking of protecting themselves and not their members.
Bineham wake up to yourself…
How can you have a 4 hour exam with no study materials or structured guidance on what to focus on. This is unprecedented. You have to remember the vast MAJORITY of us are doing the right thing and helping our clients through the financial and emotional challenges of life. The regulators are a complete and utter disgrace.
The AFA is heading for extinction under it’s current leadership. This is a good example of the reason.
We wouldn’t be going through this mess if professional associations were getting paid by parties facing a Royal Commission. We wouldn’t be going through this mess if planners stood up and said is it appropriate a body lobbying the Government has multiple conflicts on interest. The CBA paying FPA to remain silent is a cost of doing business for CBA and now advisers are paying for it.
Cancelled my FPA membership and I would suggest AFA members do the same. They are both utterly useless and conflicted bodies.
Perhaps the AFA and FPA should stop accepting bribery payments to go along with destroying your members or actually become an independent body putting the interests of members and customers before your 30 pieces of silver.
I thought the AFA is meant to be there to support and fight for our cause and future – NOT capitulate and sell us out. AFA you have let us down in the past and will no doubt continue to do so going forward. “The AFA is here for the next 12 months …… ” and what will happen after that? AFA / FPA you should be putting pressure on the powers that are setting the exams to provide study materials and clarity. Otherwise what chance of passing do we have. Truly a pathetic situation Mr Bineham! What and how are you and AFA going to be “helping advisers get the qualifications” Please explain exactly what you mean and AFA’s plan of action.
“The industry is growing to accept and understand” what a load of BS we are forced into accepting this nonsensical legislation otherwise the choice is to close the doors. Outstanding work AFA you should be ashamed you dropped the ball when this rubbish first started. You were caught sleeping when the Sh*t hit the fan and reacted to late. Your upper echelon has no clue as to the adviser on the ground “Charge I am right behind you” I hope someone in your organisation is reading the comments or once again easier to ignore! How many of the board are going to do the exam or “re qualify”. Once again I do not see any other industry being hammered into submission like ours. Yet Kogan can now sell Life Insurance what a joke. Come on folks united we stand divided we fall.
I cannot believe Bineham said this rubbish. AFA & FPA are supposed to represent advisers, not the sponsors who sustain CEO salaries at the bodies nor some vision of “laura norder”. Thirty years a member and this is my thanks. Get some kahunas, AFA !
Both organizations waived FASEA through, seduced by the prospect of compulsory membership in the name of professionalism. Bad law is just that – bad law, and should just not be accepted as a fait accompli. I protested against the bad law of conscripting 20 year olds to go off to someone’s else’s civil war while still being unable to drink or vote. That was bad law and eventually it was rescinded
No one has yet bothered to demonstrate how any of this FASEA crap can benefit my risk only clients. The only winners here are the universities, who have snatched at FASEA like a drowning man in the face of reducing government funding
29 years owning and running the single planner practice, CFP, CPD points often double whats required and i have to go through all this. No complaints history, no issues with audits. Close to 60. Why bother anymore? Sadly so much experience will walk out the door with many thinking the same. Not interested in the exams or all the additional study and early retirement is looking good. Sadly tho, the client side is a pleasure I will miss, and the many insurance claims we ensure get paid will be sadly missed by those clients that may become orphaned. Im in the sticks, so who wants to go outback and serve? Im very disheartened.
Cough cough Bulls**t nothing to see here !!! Move along move along !! There is less fantasy in a star wars movie than the dribble in this article
Yes men AFA. That’s all you’ve become. Just yes men.
Just so angry at all this…
So just because something is legislated that means nothing can be done. Come on give me a break. You are pathetic Marc & I like many are questioning my membership.
Once again a cowardly approach from the AFA. Remember it is your members you are supposed to fight for. You guys rolled over as puppies on the commission payment front now this. Take a stand fight back no industry has ever been so pistol whipped as ours. We need people of might and courage now more than ever. Not wishy washy whimps who are prepared to bend over and throw us all under the bus again, it was bad enough Fox did it to us before.
Disgusting, is the right word for this rubbish. Can’t wait to not renew my membership with AFA.
An organisation clearly out of touch with its constituents. Glad I did not renew.
AFA = Useless. How were the adviser numbers at the conference?
After everyone has a degree how many at the AFA will be less qualified then the advisers they represent?
NO you are wrong. I stuck my middle finger up at you the AFA, the corrupt FPA and the whole industry years ago and operate as a valued and loved adviser that is 100% unlicensed and will never be licensed again. I meet every criteria of being an exceptional adviser and my clients value my advice and what I’ve done for them. I dont need your onerous and hugely taxing compliance regime and my clients do not wish to pay for it and I refuse to charge them YOUR tax anymore.
Advisers need to revolt and stand up to your mafia tactics and motherhood statements and do what I’ve done and say no more, F U!
It is surprising how easy it is to do and how refreshing it is to go back to giving advice at half the cost and with none of your life zapping box ticking study bullshit.
Figure it out for yourself people. It’s easy and asic and the vampire industry bodies can’t touch me at all. It’s 100% legal and my clients love it, I love it and I can’t keep up with the referrals. More importantly my life has returned and I feel so much better saving my clients a lot of money an myself a lot of grief and time.
Jump in the water is fine. It’s not hard, get advice and make the move.
Love your work if your honest and clients trust you why not ? well done . The costs like para planning licence fees etc is a joke . Have to sell my book because of this bullshit and the associations are a joke , they have sold us out
Johnny, if u have to sell your book, it’s obviously because your level of education and/or knowledge is so low. That is one of the reasons the rest of us are in this mess. Barriers to entry way too low for way too long. Degree requirements should have been brought in years & years ago, the wheat sorted from the chaff. Associations havent sold us out, our fellow advisers have sold us out. Time to move from an industry to a profession & it will only happen after a massive, much needed cull. Good luck finding a buyer…
You said….”Associations haven’t sold us out”…mate I just cough up my lunch and fell off my chair. What planet have you been on for the last 10 years.? Obviously you work for AMP or CBA or a bank owned license. The word limit on these comments prevent me from writing a novel.
Hi – I’d be interested in finding out your approach – I need another option if this nonsense is going to continue – how can i contact you direct – bruce
Nothing terribly innovative involved. If you want to give unlicensed financial advice without having to worry about laws or compliance just become an accountant, real estate agent, or book author.
Wow, inspirational story. I’m keen to understand more too. What is your name trailblazer, I like your style…(putting the unlicensed bit to the side for just a second that is)…
We need to figure this out as you say. It’s easy. Who are you!?
Property and SMSF I’m guessing Matthew. or suburban accountant and their hot tips… or direct property.
There’s no way to label yourself as a financial adviser and give product related advice without being licenced (either self or DG).
If as you say, it’s 100% legal, I’d love to check out your website if you’re happy to share your business name?
Always happy to be proven wrong!
This article is indicative of the reason our Industry is in the position it is. No acceptance of any culpability from the bodies that purport to be representative of Advisers in our Industry. One could say complicit. Yes, I agree just disgraceful!
I wonder to who and to what Johnston is referring to when he says “the unfortunate behaviour of some FASEA board members and their industry allies” ?? By using such a broad reference he besmirches the character & reputation of all members of the board. Is he too cowardly to name the specific people he’s referring to??
Given Johnston’s history with some of his ‘industry allies’ and his unabashed support for those behind the Trio/Astarra debacle, you know to take anything he says with a grain of salt. How is still the head of the AIOFP is beyond me & a massive reason why I’d never ever consider joining his little clique.
Cheers
Jimmy
He’s trying unlike the FPA and AFA.
As an AFA member I feel we have been let down by our associations with regards to FASEA. Increased education is not going to weed out the bad seeds, all it does it put undue financial and emotional stress on advisers who wish to stay in the industry. I effectively feel like we are being told if you want to keep your job you need to go spend $30k.
$30K, no way – it will be a lot more, like at least 5 times that.
Regardless of my B.Econ, Full DFP, SMSFA Specialist and training, Financial Adviser Estate Planning Specialist and training, 20 yrs CPD, 20 yrs experience, etc i still have to do 3 courses, at say up to [b]$5K / course = $15K + at 120 hrs per course x $330 / hr = Total $133,800 [/b]
So regardless of significant formal education and experience FASEA want me to pay $134K to keep my job.
Plus the exam fees – how much will that be plus study time = another 120 hrs + exam fee ?
FASEA we all want the entry levels to increase – but how you can honestly talk about Ethics and not recognise past education and experience is beyond unEthical !!!!
It’s astounding that someone with so much experience & education can be so stupid…. If you are as good as u say you are, why would it take you 120 hrs per course? A legend like u should romp it in without study. And if u only have to do 3 units of an 8 unit course, then hasnt there been recognition of your past education & experience??
Seriously, did u think before venting? Or should someone of your standing (although questionable judgement & deduction skills) have been given an armchair ride?
Thoughts??
Cheers
Jimmy
Every Financial Associations / AFA / FPA / AIOFP / FSC and all their managers & executives, Bank CEO’s & Managers, Insurance Co. CEO’s & Managers, Industry Super Funds CEO’s & Managers, ASIC, APRA, and lets not forget the Politicians.
ALL these bodies and people have at least been some part IF NOT a major part of the problem.
[b]So what ever Financial Advisers are made to do via FASEA – then so should all these Financial Representatives too [/b]
The complete lack of ethics buy all these Financial Industry types must be re-educated via FASEA !!!!!
Maybe everyone who has any influence, including associations, or management of financial planner should have to meet the FASEA rules as well. How does it sit now?
In other words, the AFA and FPA cannot do a thing to help. Like it or lump it.
I for once will be lumping it if FASEA has their head in the sand.
The author is missing a major point, we have to pass an exam without any prior material to study and the content will be made available post exam. On what planet is this acceptable. If there is some format made available prior to the exam, the resistance will diminish. It’s a bit like some idiot winning the polls and is PM without any experience or knowledge. Oops, maybe that’s is how it is. The time line to complete is way too short and unacceptable. Fix these two issues and the program will work, otherwise a disaster for the industry.
Disgusting !!!!!!!!!!!
The comments of Johnston? The fact that there are advisers currently practising in the industry who believe they dont know enought to pass the exam, yet are still offering advice to clients?
Cant really follow what you’re referring to, there was a bit in the article….
Agree. I’d like Mr Bineham to be forced to get a degree to maintain his job and see if he still takes that stance. Where is the AFA’s voice for it’s Advisers.
FASEA for all Financial Industry Execs, etc and the Pollies too.
We all know they all have a serious lack of ethics !!!
Umm – he is also a practising adviser in the same boat as everyone else!