In a statement, the FPA said the increase in the number of new entrants enrolling into the CFP program was an indication of a “shift in attitude” by advisers towards education standards.
“At a broad level, these results reflect a voluntary movement towards higher education standards across our profession,” FPA chief executive Mark Rantall said.
“There are already around 5,500 CFP professionals in this country and there are many pathways for those who want to join it,” Mr Rantall said.
“The CFP mark remains at the pinnacle of our profession and can be viewed as a sign of trust for consumers. This kind of differentiator is more important than ever for consumers,” he said.
Mr Rantall also said the FPA has been advocating for a rise in education standards across the financial advice industry.
“While [education] isn’t a silver bullet, we know that higher education and professional standards lead to better consumer outcomes,” Mr Rantall said.
“We also know that financial services firms that hire CFP professionals reduce corporate risk,” he said.
The CFP designation is the “only designation” for financial planners that is recognised worldwide, requiring financial planners to “adhere to higher professional and ethical standards” above those proposed by the federal government in the FOFA legislation, the FPA said.
(8)Melinda…Sorry,didn’t mean to offend. You are correct of course, and added to your credentials is the fact that anecdotal evidence suggests girls have proven themselves as better investors than us guys…so keep up the good work…more power to you.
It goes without saying that there must be some technical competence to practice as a financial adviser. Necessarily this means educational attainment.Difficulty is the standard of the current education lends itself to criticism – a little light on – For those with experience – lots of real experience – this would seem difficult to justify in that they believe they have a commercially viable situation – so why burden what works for them.
Education in isolation is not the panacea – and you cannot legislate for integrity and honesty – does more harm than good.
If we look at any other field of human endeavour – the 80/20 rule works -why don’t we focus in on the 20% of actions that give us the 80% of pain. A quick survey of the population would provide an insight into what should be addressed first.
My thoughts – a confidential reporting system would identify the clowns pretty quickly, then go after the low hanging fruit so to speak.
[quote name=”James”]Engineers, Architects, Scientists, Teachers, none of the professionals complain about having to be qualifies and would not be employed if they were not qualified. becoming qualified is a prerequisite to employment. GET REAL GUYS….Prove your worth.[/quote]
James, what you are missing is that 20 or even 10 years ago there was no degree for financial planning. I checked when I entered the industry and was advised the Advanced Diploma was the best option to provide practical, ethical, and theoretical financial planning services. If the norm or option had been a degree then, I would have done a degree. This is not the same with teaching, science, or architecture. You can’t now make me go back and study a degree, when I have the advanced diploma and ten years of experience and ongoing training. Of course new entrants should have a degree now, but you can’t backdate this. Be sensible and give credit for long term experience, as many other professions also do.
James, we are ALL already qualified! When does it end?? The advice industry and it’s fundamentals like every other industry morphs or changes yes but the education and experience I have like many others DEMANDS respect, and is very capable & sufficient. Our industry doesn’t need some course flogging company telling me I’m not good enough unless I pay them thousands of dollars to do their tin pot course. WAKE UP! It will never end.
Engineers, Architects, Scientists, Teachers, none of the professionals complain about having to be qualifies and would not be employed if they were not qualified. becoming qualified is a prerequisite to employment. GET REAL GUYS….Prove your worth.
It’s only scaremongering to those who are scared. The ‘I don’t need a peice of paper’ generally comes from those who don’t’. A relevant degree should be mandatory plus a relevant professional course of study in a similar mode as CA & CPA which I hope CFP will in time be on par. I suggest a lack of education and standards is in part the reason for the burdensome admin that has been placed on our profession. We do need higher standards and with that comes higher education.
Cfp@like, Financial Planning is incredibly simple, full of common sense and the ridiculous CFP status is not needed. What is needed is to rid this industry of hefty cost, time consuming and pointless admin that helps no one as well as RIDICULOUS scaremongering from the likes of the FPA who insist on “higher education” to add to the already costly compliance burden that we all pay for and pass onto clients. Get rid of this, destroy the rouges & over chargers and respectability will come. I don’t need a piece of paper for this and neither do you. Wake up!
It’s the AFA for me. The FPA should have taken the lead on education 10 years or so ago instead of handing out CFPs from packets of cornflakes and burying their head in the sand. From talking with some other advisers, I’m not alone in choosing the AFA (once they’ve got their TASA accreditation worked out).
While I understand what Steve is saying (comment 1), to be seen as a Profession, like Solicitors and Accountants, a degree is required and then so too is membership of a professional association, like the AFA. It’s just a shame the FPA has been asleep for around a decade otherwise I might have joined them. Too little too late FPA!
I for one support the FPA. I’m curious about the motivations of the detractors of the FPA and CFP. Is it a case of those who bag either, struggle to meet the standards? Higher education is a must. The only detractors I’ve come across in the flesh can’t meet the standards and it seems easier for them to criticise than get with the program. For those who don’t like it the end is in nigh.
Mark. Gee….Fofa and the Storm/CBA scandal has just worked out dandy for the FPA hasn’t it! Its never mentioned these guys all did your courses to get licensed in the first place.
When an adviser KNOWS HIS STUFF, the “only designation” that is needed then is Morals and Ethics – not a costly and lengthy course. Sorry Mark, keep pushing your barrow to those who don’t know what is needed like the politicians.