In a statement on its website, FASEA announced the proposed rules for the professional year, which all new entrants to the industry must complete before providing advice.
“The professional year is an essential component of the educational qualifications and standards that all new entrants are required by law to undertake before they can provide personal financial advice to retail clients,” the draft guidance said.
“The requirement is intended to ensure consistent, minimum professional standards of education and competence apply to financial advisers nationally.”
According to FASEA, the professional year will “encompass practical learning of four core technical competencies”, which the advisers completing the professional year will have been taught as part of their degree course.
The four competencies to be tested are “technical competence, client care and practice, regulatory compliance and consumer protection, professionalism and ethics,” FASEA said.
The full proposed guidance on the professional year can be read on FASEA’s website here.
In a separate statement also released today, FASEA explained that advisers completing their professional year will be considered “provisional financial advisers” during this 12 months and must be referred to as such until completion.
FASEA also released draft guidance on the use of this term, which can be viewed here.
Submissions on the guidance for both the professional year and the term to be used for provisional relevant providers can be made to FASEA until 5pm on 17 August 2018.
Why anyone new starting out looking for a career would want to get involved in this ridiculously complicated over burdened red taped out no money making high risk of litigation fines and penalties industry is way beyond me. Children stay well away!
Why stop at 60 hours, why not just pick a number, why not just round it up to 100….
It’s the current format of CPD run by Kaplan etc that is a joke. How you can get accredited for 1 hour/1 CPD point for 4 multiple choice questions is beyond me. Instead of increasing the hours, make gaining the CPD points actually relevant to the number of hour spent. Reading a 4-6 page document and then answering 4 multiple choice questions doesn’t hit the mark.
With big institutions rapidly backing out of financial advice, and small practices drowning in an ever increasing regulatory burden, it may be difficult for future graduates to find experienced planners willing to take on the risks and overheads of supervising a professional year.
Correct, unless you have a considerable client base / revenue to do this, most small practices will not be able of afford this, again message is if you are a one or two person show, then good luck with your business and succession plan.
I always wondered how this industry can allow full qualifications in such a short period. Even a spray painter etc has to do 4 years practical apprenticeship first! PRACTICAL !!!! I am sure it took me 4 to 6 years to get the experience needed. I was lucky to have quality people to learn from—–Practical !!!!!
if self important boffins like those that even came up with the idea of “FASEA” actually gave a dam about the need for consumers to access simple and precise information and advice then practices would be able to attract more clients, make more money and employ more “provisional” advisers…but i can’t really see anyone wanting to go through this farce just so they can stick their head in a noose…
What incentive is there to hire someone (a new entrant at that) who is going to be studying more than they are working? I might be missing something important, but it seems kind of redundant if they aren’t learning appropriate things on the actual job.
I am a FASEA qualified and experienced adviser. My worth has just jumped considerably. My current employer can no longer afford to pay me what i’m worth. Likewise, they can’t afford to employ an adviser with years of degree study to come..that the firm said they would pay for. I can see some employment contracts being revised.
What about the future generation thinking about entering into the industry? They won’t do it. Why would you do a degree where you are being pigeon holed into studying for just one profession. It makes much more sense for someone to study a commerce or business degree and have options of where they want to work or what path they take
So a guide on what a lot of companies already do.
All the big banks already have this stuff in place and have done so for years. FPA’s report to a senior FP with what they are helping clients with and what recommendations they have considered. The senior FP makes sure that the FPA’s is up to speed before they can advise on more complex financial planning issues on their own. Companies don’t just hire new financial planners and give no supervision.
Except that under the FASEA model the provisional planner can’t actually do any client facing work, simple or not, on their own.