In a statement released today the bank announced that the education standards announced in July for Commonwealth Financial Planning advisers has been extended to advisers licensed by CBA’s other licensees Financial Wisdom and Count Financial.
In addition, the new standards will be mandatory for licensee staff within these networks, including compliance officers, paraplanners, BDMs, PDMs and state managers, a CBA spokesperson confirmed to ifa.
“Applying these educational standards across the CBA Wealth Management Advice business is an important step in ensuring the financial planning industry is recognised as a profession,” said Marianne Perkovic, executive general manager, wealth management advice.
Transitioning to the new standards will commence today and will be completed by 31 December 2017.
The statement explains that as a minimum, current authorised reps and relevant licensee staff of Count and FinWiz will need to have one of the following:
• an Advanced Diploma in Financial Planning or equivalent; or
• a degree in finance, business, commerce or a related field; or
• a Certified Financial Planner (CFP) professional designation of the Financial Planning Association; or a Fellow Chartered Financial Practitioner (FChFP) professional designation of the Association of Financial Advisers; or a Master’s in Financial Planning; or
• a degree in any field plus an accounting designation with one of the Joint Accounting bodies.
Prospective authorised reps looking to join one of the two licensees after 22 October 2014 will be required to have one of the aforementioned qualifications or “a minimum of three years relevant full-time experience (or part-time equivalent) within the preceding five years, as an adviser or paraplanner that included substantial involvement in the preparation or presentation of financial planning advice, plus attainment of the Advanced Diploma in Financial Planning by 31 December 2017”.
What a joke. They (cba) and other dealer groups just don’t see the problem, that is their KPI’s and self interest is the issue. How is smartening up somebody with jargon going to help with ethics and honesty?
Leo there’s a problem with your oldies exit scenario and the influx of “”educated advisers’.
In terms of risk advising, there is no creditable training in the industry NOW. New advisers just do not get risk product training from anyone- they learn at their clients expense. The FPA give lip service to risk – I have read their course material. The insurers prefer not to, ( some advisers might find a few un-expected nasties ) and the licencees can’t afford. I make a habit of asking Licencee BDMs I meet at Conferences to tell me what specific Life Risk Training they offer. All I get is blank looks.
The Countess has squibbed it.
Forcing middle managers and PS146 advisers to do 4 more units over 3 years and get an Advance Diploma “or equivalent” (read CBA in-house signed off training), is, however, a start.
What they really should insist on though is compulsory external ethics courses. But that might be too much of an acknowledgement of past errors.
Oh dear !!
Stand by for the exit of advisers from FW & Count
The bankies will probably cop it because they fear being without leads
This is what happens when the banks SPIN merchants seek to change something that’s about culture, not education.
Are we to expect an exodus from the industry leading up to the 2017 deadline imposed by a few AFSLs? Those aged 50+ who don’t hold the relevant qualifications surely won’t subject themselves to additional study that they have avoided to this point. Could be a monumental generation change within the industry. Potentially a great opportunity for the younger generation as the market is flooded with older sellers. Perhaps the ‘forced’ removal from the industry of the less qualified will result in increased professionalism and public standing?
An expensive FPA course fixes everything, don’t you know that? Did wonders for the storm planners.
still don’t get it…
wow only 20 years to late