Under the proposed guidance, financial advisers will be required to complete a minimum of 50 hours of continuing professional development each year, 70 per cent of which must be approved by the adviser’s licensee.
Advisers will also be required to maintain “a continuous, up-to-date and accurate record of their CPD activities, including evidence of completion of any CPD activity that is intended to be relied on to meet this standard” and hold these records for six years and make sure their licensee has access to those records as well.
Licensees will be required to maintain and publish a CPD policy, which their advisers must adhere to, and this must include:
• Overall approach to CPD;
• Process for approving CPD activities and the mechanism for allocating hours to these;
• Approach to any professional development plans for relevant providers;
• Process for ensuring CPD activities are provided by persons and/or entities that are appropriate (with sufficient standing, expertise and qualifications);
• Approach to evidencing outcomes of CPD;
• Approach to record keeping; and
• Approach to auditing compliance with the policy.
The full guidance can be viewed on the FASEA website here, and interested parties can make submissions to the standards authority until 31 August 2018.
Perhaps this is just keep Private Sector education happy? You see they missed out on the first round of the gravy train and the University Sector is getting all the big dollars. This is a way to keep private institutions on their side.
Isn’t it great when Non Financial Planners decide our future. But hey at least we’ve got AMP paying the FPA and I’m sure they’ll come to our rescue…not. If any adviser can’t appreciate why we need a strong independent adviser only association that represents planners and the public… then you must have rocks in your head.
Just checked the FASEA website and now they say that Business and Commerce degrees are now ‘unrelated’, previous correspondence from FASEA stating that they were ‘related’ was an error. Only Financial Planning, Accounting, Law and Economics will be counted as related degrees. Given that my Business Masters Degrees were comprised of units from each of these related degrees I am bitterly disappointed that a ‘Law’ degree is seen as more relevant to financial planning than a business or commerce degree. Is anyone else angry about this?
Yes. Especially since the difference between a Major in Financial Planning and a Commerce/Business/Finance Degree can be as little as FOUR subjects.
Those four subjects (Superannuation & Retirement Planning, Insurance, Financial Plan Construction, some investment or ethics subject) could be picked up via a Diploma, or other suitable means. The last I checked the ability to read a Balance sheet was not covered in Law.
I pitty anyone trying to sell a business if we’ve just excluded 180,000 commerce graduates.
It’s absurd.
Ridiculous. A degree (in any field) shows the following:
Demonstrating Commitment. Pursuing a degree while already working in the field shows you are committed to your profession. …
Career Advancement Opportunities. …
Personal Growth. …
Recognition and Credibility.
What difference is it if it’s not directly a FP degree? You learn everything on the job anyway!
FASEA = money grabbing grubs
I think 50 hours is reasonable given the prevailing situation – it’s only 10 more than what we have to do now anyway. I’m aware that other professions have much lower CPD requirements however let’s have a look at the ENTRY requirements for said professions:
Accountants – Degree – AQF7
Lawyers – Degree – AQF7
Doctors – Degree – AQF9
Engineers – Degree – AQF7
Financial Planner/Adviser – RG146 – AQF5
See the difference?
I know this will gradually change as the FASEA education requirements kick in but has anyone considered that MAYBE over time as the entry requirements have substantially increased that CPD hours may DECREASE? Food for thought.
yea good luck with that thought bubble.
Thanks for the inane comment bubble. It’s added a lot of value to this discussion. I actually agree with Anonymous re: decrease of CPD requirements in due course. I think it will come down to the quality and difficulty of obtaining the required hours as opposed to quantum. Multi-guess CPD points from our esteemed associations and product providers and LOL CPD points from attending conferences will be a thing of the past.
WTF? speak english
So FASEA won’t recognise any past CPD of 30 plus hrs per year as ongoing education for already well educated and well experienced advisers.
But now FASEA want 50 hours CPD.
FASEA, CPD is either good and useful ongoing education or it’s worthless.
Make up your mind !!!!
Interesting analogy. FASEA won’t recognise existing CPD, but propose that THEIR CPD framework is superior.
Bend over planners. Your not your own boss anymore. Your a baby and you’ll do as your told you naughty children you. Keep paying your FPA/AFA fees of course.
50 Hours CPD is not an issue. I reckon that most would clock this up by just being up to date. We just need to record our studies a little better. The fund managers etc should also attach CPD points to a lot of the stuff they preset to us if it includes some knowledge or area of learning (for example they all send out a budget report, attach a couple questions and give it a CPD point). I have a much larger concern about some of the other unresolved areas of FASEA. Im hoping they broaden what is included as a relevant degree, place greater importance on some previous learnings and work experience.
I support raising standards and advice outcomes, but where does FASEA stop? What has been completely lost in all of this is FASEA employing a consultative approach to find a workable solution in a workable timeline. Here we have a standards body quickly established by a government that has jumped to a conclusion without all of the hard line facts, a board heavily weighted with academics and time lines and a ticking clock set into swing before realistic and workable solutions have even been finalised. It is very hard to show any respect or support for FASEA or their proposals when they have tunnel vision and have clearly overlooked that advisers already practicing have businesses to run, staff to employ, clients to serve and families to support yet are expected to effectively step back from all of this to comply to a seemingly growing list of new requirements in a very short amount of time! A complete reset is needed with a consultative approach, realistic timelines and a clear end objective set.
True Story. When i spoke to the local Federal member and told them how much PD and TASA I have to do each year her response was “Wow that’s a lot, that’s more than teachers and lawyers” And these people are responsible for decisions on my life. Wheres the duty of care for their decisions or dare I say “Safe harbour steps” or “know your client”?
I have no problem with 50 hours but there needs to be cross recognition of FPA, AFA and SMSFA approved CPD. So many options for getting the training these days that most will easily beat this target.
Please FARCEA- make it 160 hours! I’m F’ing Bored!
I wonder how many CPD hours the Pollies have to do?
I fully support raising standards and advice outcomes in the industry, but the “bull at the gate” proposals by FASEA are too much all at once. Financial Planning by comparison to other professions is still relatively new, yet we have a government hell bent on changing it overnight with standards that exceed that of the legal and accounting professions. The ramifications with their retrospective rapid approach has potential ramifications businesses and people’s livihoods with solid grounds for a successful class action if it goes through in current form (refer trade practices act). Given the FASEA board are made up of a large proportion of academics that represent educational institutions that are likely to benefit with the new standards, why are more people not questioning the big conflicts of interests that exist within FASEA? An absolute joke!!
50 hours CPD is nothing plus the TASA stuff. Honestly, it’s all done with eyes closed anyway. I had mine done by September last year. You find a quiet few days / arvo and instead of going home just nut out most of the modules. Or if you feel inclined have a beer at home and knock over your points after hours for fun. They’re not hard to complete. And yes, I am a practise principal, sole adviser, father of 3 under 8, and yada yada,
That is precisely the point mate, what is the difference if they are soooo easy, why not just have 30 or 40, why 50 …….. FASEA lose your frigging EGO
It’s like anything, if you want it, it will happen. If you dont, and just bitch and moan, it never will.
Like that quote ‘Doesnt matter whether you think you can or cant – either way you’re right’
Well said Dylan. I can’t believe there is so much angst and negativity out there when it comes to personal improvement. “When the going gets tough, the tough get going.” Adapting to the changing environment is key. Why waste years of education and effort only to throw it all away because of an unwillingness to adapt.
we really need smarter people running the show, one’s who have actually run a business of their own, taken risks in life, made money themselves and are successful people generally
problem is we have so many duds running the show, yes, you fat lazy turds who did a degree like 40 years ago
Well, put yourself out there mate. Set the example! :lol::roll:
well at least they did a degree. The issue is that we have too many fat lazy turds who have almost no qualifications at all. There’s your issue. For far too long fat lazy turds have been allowed to gain easy access into financial planning allowing them to scam the system. I’m happy that the barriers to entry and the bar to stay are being raised. Your comment shows that you just want to stay on the gravy train. Well here’s the news that train is pulling into the station and its time for fat lazy turds like you to get off. Dont let the door hit you in your fat arse as you go….
Do you really think that cohort would be interested in working for FASEA?…hmm think not.
50 hrs CPD is not an issue, disappointing to see so many reactive comments.
I think this is reasonable and we should focus on the outstanding FASEA matters relating to getting a reasonable outcome on qualifications for experienced advisers.
CPA accountants = 20 hours
GP’s = as little as 20 hours
Physicians (ie. medical specialists such as Cardiologists etc.) = as little as 34 hours.
Financial Planners = 50 hours!!!!
What the hell is going on with FASEA?
C’mon mate – I have no issue with this, as long as delivery is allowed using a range of methods. . Most of us do well over 50 hours, we just need to be better at keeping records.
You’re probably right, 50 hours, – on its own no biggie. But taken in the context of a) still no discussion on a separate qual for risk advisers b) 2 year chargeback STILL unchallenged c) uncertainty with all the exam/degree nonsense FASEA is going on with and the onerous cost of degrees in time and money, then . . . THEN this 50 hour thing is insult to injury. STILL . . . STILL(!), NOBODY IS TALKING ABOUT A SEPARATE EXAM/DEGREE/QUALIFICATION FOR RISK-ONLY ADVISERS. THANKS (NOT) LIFE COMPANIES AND JOURNALISTS. Yes, I’m yelling! Someone has to as the life companies should be championing this for us – they are NOT so someone has to grind this stone loudly! ALL risk advisers should be shouting about this – why so quiet guys?! Chin up comrades.
I suggest every life insurance specialist write to their local federal member (Liberal) and tell them to have a word to Kelly O’Dwyer. FASEA state that they are simply following the legislative instrument that enables their mandate. Therefore the answer is to place enough pressure on O’Dwyer so that at least she considers the options. However in an election year 2019, you’ve got buckleys.
the bureaucrats are in over drive… remember, these people live in THEORY land.. they are jumping on the hysteria band wagon whipped up by the Political Commission (oh sorry.. Royal Commission).. they just like every other GOVT DEPT… doing needless work that adds no value to anyone – they are just interested in preserving their job with needless paperwork.
For the record.. I’m ok with 50 hours but we do need someone to stick up for all of our dodgy planners.. but let’s not generalise.. right!?
I attended the AFA roadshow last week and what I saw was a lot of tired and worried advisers. The 10 minute FASEA gloss over was outstanding “chin up be positive” rhetoric. I have had enough of people calling the shots on my business my livelihood. It boiling down to harassment, intimidation and ultimately bullying us into submission. I cannot see any other profession getting slammed like this on an everyday basis and we are supposed to act and work like everything is OK!! newsflash it’s not. AFA& FPA stand up and be counted when we actually need you to go in boots and all. Once again hands up to those who want to get a class action going.
I’m in……….. A barrister can knock over his compulsory CPD in one day. this is all a load of horse s..t. How about these dopey public servants spending 50 hours of their own time and money and see how they cope. I’m just about over this crap.
John and others, vote with your feet, get out of the industry like I did.
Fortunately I was nearing retirement and had enough in super and other assets to get out.
Do the same otherwise you will end up totally pissed off and unhappy and life is too short for that. Remember every extra day putting up with the crap is one less day in retirement!
Take it from me, I have never been happier, life is bliss.
I think you will find more and more people leaning to this as reality of it all starts to hit home.
yep.. fully agree.. what we see now is a bunch of people making decisions that wouldn’t know a financial planner even if they fell over one. You know we are in trouble when the Educators (with their own vested interests) are running the show.. Not sure were the industry will be, but I think that they are doing a great job to put us on TPD claim (for a mental breakdown).. but who cares (watch the insults fly from the politically correct)…
You can do this crap with your eyes shut and complete most articles in 3 minutes or less. Its multi-guess and you get 2 shots! In fact half the heroes out there get someone else to do theirs anyway. Can we get some people that understand the industry actually making the decisions – its absolutely embarrassing. They probably brainstormed this idea over a 5 day summit.
FASEA and Over Complicated O’Dwyer – How Many CPD points / hours do you do each year ?
I wonder if this is owing to such a low standard of CPD at present? If I can do a four question test in under 5 mins without reading the article, and receive 0.5-1.5 CPD then something needs to change. Upping the hours, though, is pointless. Raising quality of CPD by actually auditing the providers’ content and keeping them up to the required level whilst keeping CPD to 30 or 40hrs (for CFP if FPA doesnt just increase that to 50) does make sense to me.
If you can answer the information straight away it means you are fully across the content?
Not necessarily, the tests are generally multiple choice.
Licensees need a policy? Isn’t that what FASEA and the FPA et al are for? I’ve got better things to do with my time – like service clients and run a business than write worthless policy..
This may just be a bargaining trick. Their though…Go in high as we know we are going to have an outcry and then we can bring it down and get what we really want, while everyone thinks they have one over us…?
Would not be surprised at all by that.
I do 70 a year already, run a business and a family and advise clients, what’s the problem? Why do Planners complain about planning?
agreed
Oh well done the both of you! You both get Gold Stars.
I have been doing more than 50 anyway as the stupid dealer group says I have to do a certain amount in each category and then I have to add the SMSF Association CPD pts on top of this. I agree it’s not always time well spent and the clients wont see value in it
This seems punitive.10 hours of CPD a year for a lawyer, 20 for a nurse, 30 hours a year for an accountant, 50 hours a year for a doctor and…..financial planner? If this is the case, I’m off to become a brain surgeon.
if you read between the lines the idea is to cull 50 to 70% of advisers by, and I think they will get their way
30, 40, 50,…,70, 80
complete the pattern for 0.25 CPD point
You can’t train honesty and integrity and just doing the correct investing for the client!
50 CPD points is ridiculous. That means we will have to give up nearly 2 weeks a year to get these points!
is that an extra 50 on top of the 30 we do now?
What planet are these people living in? The FP industry has a bunch of incompetent people designing the structure of our profession. SOS!
Im reading most of the time. does his count ?
FASEA appears to be doing whatever it takes to stop advisers from being able to work.
Overkill, 20 hours more… why not round it up to 80 and just spend 2 weeks on it. why isn’t 30 sufficient when you take into account we need to also complete TPB cpd? or was that forgotten??? Architects, 20, lawyers, 10, GPs 20, accountants, 10-15 pa depending on organisation…
A minimum of 50 hours – what a joke. This is far too many.
CFP is 40 hours or 120 hours over 3 years.
What is this a competition from FASEA to have one over everyone, seriously you guys have gone to the extreme!!!
So, with all the other study, hopefully they will just say ‘don’t work for pay, spend your time studying and doing CPD to tick our boxes’.. Who cares if an advice firm makes any profit or any client actually gets advice offered to them. WAY down the priority list of things to do… make sure the CPD is up to date though !
What are the ongoing CPD requirements for other professionals?
A quick search shows lawyers at 10 hrs pa, chartered accountants at 30 hrs pa, teachers 20 hrs pa. Only doctors & engineers have a minimum of 50 hrs pa for CPD.
And they get to knock most of those off just for a seminar
50 hours seems pretty steep.
The Chartered Financial Analyst Institute recommends 20 hours minimum for its members. CA’s do 40 per year (or 120 over a 3 year period). Why does FASEA have to set the bar even higher?
The legal profession complains about 10 hours per year!
please, you mean leeches. please don’t compare financial planners to lawyers.