The Financial Adviser Standards and Ethics Authority (FASEA) received over 800 submissions and has made certain changes to the framework from the feedback.
New entrants to financial advice will require an approved graduate diploma and will be able to seek recognition of prior learning (RPL) from the education provider as per their credit and learning guidelines.
For existing advisers, FASEA will provided guidance on credits for previous course work undertaken, with an advanced diploma of financial planning eligible for two course credits.
Course work undertaken to attain an industry designation will also be eligible for two course credits and the related degree definition has been revised so advisers will be able to undertake an AQF8 graduate diploma.
Advisers will be able to seek RPL for the Corporations Act and behavioural finance client and consumer behaviour bridging course, but will not be able to for the newly created code of ethics bridging course.
FASEA will also revise the Corporations Act course to include other legal obligations like the Privacy Act and Tax Practitioners Board.
The financial adviser examination will be split into three modules and will test the competency in the Corporations Act, financial advice construction, and ethical and professional reasoning and communication.
The exam will be set over 3.5 hours but will be open book and a curriculum framework and practice exam will be available to advisers.
FASEA has also reduced the CPD hours for advisers from 50 to 40, of which 70 per cent need to be approved by the licensee.
The authority has also revised the code of ethics for advisers in a manner that is consistent with legislation.
FASEA chief executive Stephen Glenfield said the revised standards were an important step forward in finalising the requirements.
“The detailed consultation input was valuable to FASEA in creating standards which address industry and consumer needs while at the same time balancing FASEA’s legislative obligations,” Mr Glenfield said.
“Industry and consumer feedback has helped to create a balanced set of standards that, taken as a whole, offer a workable framework for how the industry will evolve into the future – for the benefit of both advisers and consumers.”
Let’s all sign a petition requiring politicians to do a 6 hour professional exam. Topics covered would include fulfilling all commitments made at election time, keeping personal ambitions in check and having the skill of actually reading the laws being produced. They pay the registration fee for the exam as well. And also, the pass mark would be 95%.
as you can see, there is very good reason for the consuming public and others to think we are just a bunch of clowns.
The biggest mistake in my life was thinking that I should try and become an FA.
we are lambs to the slaughter. i can’t do the exam. i’m an old lifie. i haven’t even finished school.
i am finished. so stressed, everything i have worked for is being taken away like I am a criminal
now the house prices are also collapsing (at least they will blame mortgage brokers for a while) I will have nothing left.
Oh my god. they are going to butcher us.
I have just learnt that CFP’s prior to 2007 will not even receive the 2 credit points. My peers got in early to get educated and now we are being penalised!!.
To respond to some worried and stressed out advisers comments, any advisers thinking of selling their business and or worried. Below is a typical question taken from a University course.
Assignment 1- Risk Protection 102. Paul is 35 and has $900,000 in debt, no assets apart from his home, and has 10 kids all under the age of 10. Should Paul have life insurance? State what types of cover he should have? Explain and discuss in 2000 words.
Now if you can’t answer the above, then yes you’re in trouble. Yes paying $2,000 is a waste of money and yes it is a waste of time. Is it worth selling your business at reduced multiples or Ebit…the answer is NO. Any adviser with 2 plus years of experience should be able to meet study requirements. In short imagine you’re Chinese and you get moved to Australia and you enroll in Learn to speak Chinese. Is it worth worrying about. No.
Is it worth writing to your MP and saying what a waste.Yes. Is it worth paying FPA fees every year to get this outcome. NO.
actually learning Chinese is a good idea. i might be able to get a job there
I know this one!
Paul should have life insurance but cant find an adviser so he went to Real Insurance where he bought a tele underwritten policy over the phone only to find out he couldnt satisfy the underwriting in arrears conditions that occured when he made a claim. AFCA couldnt assist. His wife and children left him and was left a invalid pensioner under the NDIS!
Anyone had a read of the FASEA Standrds Summary November 2018 yet???????
To help with some of the confusion quite apparent from the comments, you need a Grad DIp..this is 8 subjects. If you have the DFP now called an Advanced DFP you get 2 subjects RPL, if you also have a studied designation like CFP/FChFP then another 2. THis then means if you have both then you would need to complete 4 more subjects to be awarded the Grad Dip…the subjects you will need to do will be the ethics, Behavioural finance, etc the ones they are planning on examining anyway?!?! NO one seems to be arguing about the logic of that little gem!??
Except my graduate diploma in applied subjects because they didnt exist at the time is too old (1998) and doesnt contain financial planning. Nor do my Accounting and Econmics degrees from a major university. Been in finance for thrity years without a blemish against me. But the banks will stay in business!
I thought a coalition government was about reducing red tape – majoritiy of planners doing the right thing made to go back to school like little children – what about APRA, ASIC, FPA etc where are their penalties – they are the ones that have failed with enforcement of an already highly regulated industry – the banks/AMP also have stuffed things up for everyone….its a joke and no recognition of experience and a planners age and timeframe is completely insane – FASEA are paid virtue signallers funded by a left wing LNP government
Still So many questions,
Is the original 8 subject Diploma of Financial Planning, promoted by the FPA and run by Deakin University recognised now as an Advanced Diploma (also 8 subjects)?
Will Advisers with CFP status that was grandfathered (given away) still qualify for the 2 exemptions toward completing the Grad Dip?
Is my understanding correct that if I have the maximum exemptions (4) of an 8 subject Grad Dip, then on top of this I will still need up to 3 additional subjects, being Corps, Etihics , behavioural finance and then one more course to prep myself for the competency exam.
at worst 8 more subjects at best 6.
Am i missing something?
if you were given CFP status rather than having to complete it, my understanding is that you will be entitled to 4 exemptions (same as those who did the full course) from Deakin Uni’s grad dip fp (which is 8 units in total), and you then do 4 more which includes corps, ethics, behavioral finance.
then you sit the exam
moral of the story, never trust an association (their main objective to sell courses and make money), always go for a university degree (where possible, because you can take the certificate with you) even if you are undertaking a professional designation course and ensure it has an AQF rating otherwise well you know the story
Must have completed CFP after 2007 or FChFP after 2014 to be eligible for credits. No timeframe on when ADFP was completed.
Its exam first then complete the courses! get that?
Old cfp no exemptions
the $25,000-$30,000 BIll
There is still a lot of uncertainty around the meaning of related degrees, especially degrees like Commerce, Economics and Business degrees completed prior to 2011 and 2015 when AQF kicked off. Just because my Corporations Law didn’t cover TPB material, it’s covered by ongoing learning/ CPD. This is where a Degree needs to mean “a Degree”. FASEA is still over complicating matters.
With the 3-4 units required to meet FASEA requirements, many advisers will be thinking “what is the point of studying half or two thirds of a Graduate Diploma.” You may as well do a couple of more and get a award of Grad Dip. For example 1/3 of a Masters is not a Masters. It’s nothing. Once again Uni’s win win.
The CFP Program should be worth ZIP. Even if it’s written at AQF Level 9. It’s from a Private Institution and does not have AQF standing. If you’re arguing for CFP to be worth something, then surely my Kaplan CPD points should also be “worth” something. It also is from a Private Institution and some of them were also “quite hard” and some were written at AQF level.
It’s a joke that advisers want some crappy CFP course recognised, which is flogged by the most unethical organisation around, a body dragged before a Royal Commission, and yet the thousands of dollars I’ve spent on short courses are worth ZIP. You can’t have your cake and eat it.
it’s a joke someone played. it’s not written at AQF 9, they made it all up.
anyways, it’s a moot point now. it’s the same as an advanced diploma
take it or leave it. arguing saying it’s worth AQF level 9 ain’t going to make it so.
So by the same reasoning, anyone who completed their HSC at a private school should have it retrospectively invalidated?
No it’s not the same logic. At the moment the standards and what makes up for the award of a HSC are set by the Government. If you home school your kids (without approval) and hope they’ll get an award then you’re going to be in trouble.
The CFP is an accreditation not a qualification.
so CFP holders are accredited but [b]not qualified.[/b]
Don’t tell everyone – then you can go after Accountants next. The list will be endless.
that’s true, CPA – has no AQF rating – ha ha they are gonna find out soon
I have 1 comment about CFP…CLASS ACTION against the FPA!!!! Give me my $4000 back!!!
good idea. let’s pass the donation tin around, i’ll put in $100 for you to sue this idiotic association
happy to tip in my last 20 years of FPA/CFP membership circa $20k
you are still a member though right ?
I certainly would be. They advertised on their website that the CFP Program was “like/equivalent to AQF level 9”, so that’s false and deceptive advertising in my book. My VW wagon is “like” a Porsche too.
VW owns Porsche so yes your VW is a Porsche, just like the CFP(r) is like a masters degree.
I won’t accept that my CFP (r) is NOT masters equivalent. It is, and I say so and I disagree with anyone who disputes that as fact.
This is the first time I have seen the words “benefit” and “advisers” in the same sentence.
your CFP is exactly like an Advance Diploma, the standard setting body just said so.
Seriously, I’m still confused. It says “The Related Degree definition has been revised …..”
Ok fine, where is the revised definition? What exactly is a related degree? What if your under-grad was a Bachelor of Arts (obviously unrelated) but you did a Masters of Applied Finance? Does that meet the requirements?
At age 60 & 35 years experience I have to do this? Where else is this happening ?
Time to retire my friend. It makes no sense for you to have to go through all this at your age, well not unless you want to work into your 80’s!
I retired gracefully at 64 thank goodness and life is bliss.
bigal have you thought about being a mentor to younger advisers i’ve spent so much on my education that i can’t leave yet i really do wish i could
Great to see some real direction, lets see what the timetable is now. 12 / 2020 rather than current proposal should be considered given we still have zero guideance.
What about Grad Dips and Masters Degrees in FP that pre-date the recent (2011) FPEC list? We must complete 4 more subjects at Masters level. What a joke. Meanwhile someone with a non financial planning ‘related’ degree and the advanced diploma only needs one subject? What a joke! All this so-called ‘consultation’ and this is the crap produced by FASEA?
I don’t see how you need to complete 4 more subjects – won’t you just need to complete the bridging course, which is 3 units?
Look closer at the Code of Conduct, they have dropped a bomb in there. Fees must now be ‘fair and reasonable and represent value for money for the client’. It’s easy to insert those words in there and on the surface it seems fine. But how the hell are we going to demonstrate this to the auditor from a code monitoring body? How is value measured? Must it be tangible, such as hours worked or measured against fees/tax savings? What about intangible benefits such as peace of mind, which is one of the primary reasons clients seek out advisers. And what about irregular services that form part of an ongoing service arrangement, which are delivered in some years, but not others, such as help after a family breakdown, bereavement, loss of job, career change, insurance claim, major asset purchase, retirement, Centreliink etc. etc. This will be a nightmare. No other profession has this sort of nonsense in their code of conduct. FASEA didn’t include it in the draft, so there was no opportunity for consultation. This is a disaster!
Wekk identified, ASIC loves placing these time bombs, just like the ‘fee for service’ that they now consider ‘fee for advice service’ time bomb they planted 5 years ago with no proper guidance on how they would apply it. Be warned if ASIC visit you and you have not done a doc of advice within 12 mths regardless of longevity of the client or their needs or wants, or if you have seen them 3 times that year already or even if they are overseas and couldnt come in, they consider that you have done nothing and ,must refund ALL fees, They will go through your entire client base year after prior year and bankrupt you! This is real and if you are not concerned then I hope they go into your office next.
The changes allowing new entrants who are Graduates to have a Graduate Diploma is sensible approach. Congratulations. It was looking like we kissed goodbye to 200,000 plus Commerce, Economics and Business Graduates there for a while. What 18 year old is going to study a Financial Planning Degree?
I would just like to congratulate myself for the hard work I did lobbying FASEA, my local MP on this issue. Yes I am a legend.
As for the rest of you Scum bags that made no submission (4% of advisers only made submission’s) you deserve everything you get. You deserve Over regulation. To rely on the FPA is like Dentists writing a report calling for Sugar to be added to Toothpaste using evidence conducted by the Sugar Industry.
welcome the changes particularly around more recognition of prior learning, however my anxiety levels are already rising knowing that my livelihood depends on me passing a 3.5 hr exam to keep my business. I have not sat an exam like this for well over 30 years.. it is just frightening. How did this industry end up like this? All I have ever done is look after people.. who is looking after me now? The risk v reward no longer exists.. walking away seems very real.. I don’t need this type of stress in my life.. the sad part (which is nothing short of depressing) is that no-one cares. It is a lonely road.
hey Peter. You’ll be right. We’re all in this together mate. Just keep up the good fight and look after clients. The exam will be ok for you. However going forward we all need to be more active. This FASEA debate highlights just how bad bodies like the FPA have let us down and we need to be all proactive. These groups have done nothing but look after their product manufacturing mates and feathered their own nests and their own “products” i.e CFP courses etc.
3.5 hour long exam is a bit ridiculous.
it’ll be multi choice, will be able to do while i’m sleeping. i’ll be the guy that turns up in my custom silk jammy’s
It says multi choice and written response.
The DFP 8 was 3 hours + reading time. Most uni courses have 3 hour exams.
so my CFP which is written at AQF 9 is the same as an advance diploma at AQF Level 6
Aka 25% of a grad cert. What a joke.
Word!
how else will the universities get money out of you!
No definitely not