In a document seen by ifa, the FPA said it is requesting that the government extend the deadline for passing the FASEA exam by 12 months to 1 January 2022, to restore the full two-year period for financial planners to study for and take the exam.
It also said it is requesting the government extend the deadline for meeting the FASEA education standard by 24 months to 1 January 2026.
The exam standard
Remarking on the exam standard, the FPA noted former minister for revenue and financial services Kelly O’Dwyer committed to giving advisers a period of two years from 1 January 2019 to study for and take the exam.
However, the FPA said the roll-out of the exam has been delayed, along with supporting elements for the exam including reading and study material, bridging courses and a guidance document for the code of ethics.
“The first exam sitting was only held in June 2019 and was only available in capital cities. Financial planners in regional areas will have to wait until 2020 for the exam to be available in their area through digital delivery,” the FPA said.
“It will take between six and eight weeks to get the results of the exam, meaning planners will not be able to rely on sitting the exam after October 2020, as they will not receive the results before the deadline.”
The education standard
The FPA said it is requesting that FASEA urgently settle its decisions on recognition of prior learning for all outstanding professional certifications and reconsider providing credit for experience and training through continued professional development.
It said FASEA has still not settled its recognition for prior learning and many planners do not know how much study they will need to complete, and that it has yet to make a decision on recognising some professional certifications, including its CFP 1-4 certification held by many experienced advisers.
Further, the FPA noted that FASEA only approved the first round of bridging courses and graduate diploma programs in June 2019.
“Advisers who need to complete a full eight-unit graduate diploma will need to complete two units per year for the next four years, with no potential to accommodate a break in study for business, family or personal health reasons,” it said
The code of ethics standard
The FPA added that there is “considerable uncertainty” around the Code of Ethics, which was released in February 2019, how the code will apply in practice, and that FASEA promised to release a guidance document to address this uncertainty, but this has yet to occur.
As a result, the FPA has pushed the government to release its Code of Ethics guidance document as soon as possible and then work with code monitoring schemes on any unresolved elements of the code.
“It is vital that FASEA releases its guidance document for consultation as soon as possible to resolve some of these issues,” the FPA said.
“Advisers need certainty and time to prepare their businesses for compliance on 1 January 2020.
“Where FASEA is unable to provide additional guidance, it should allow for code monitoring schemes to apply the code in a manner that is consistent with industry best practice and established norms.”
The FPA also said that FASEA has yet to release a promised guidance document on how it will apply in practice, and that bridging courses on the Code of Ethics won’t be available until late 2019.
“The consequences for the exam are severe. Each attempt at passing the exam will cost a planner $540 and failure to pass the exam in time will result in them losing their jobs, careers and/or businesses,” it said.
Good to see the FPA and AFA making independent approaches. It reinforces their previous public commitment to collaboration.
I certainly hope this press release is not going to give anyone any false hope or put them off from delaying any study.
The FPA only does things that’s in the best interest of themselves or their puppet masters. The biggest achievement that the FPA has achieved in the last 20 years is the ability to witness a stat dec and put on some tea and scones with some industry leach or a fund manager presentation and called it an annual conference. I’ve been a member for 20 years and this year I can openly state I’ve never seen them put the interest of advisers and Australians first. I treat their membership fees as nothing more than a tax, a levy, a cost to do business and I was a past chapter chair. I believe Treasury also sees them as a the head of the snake and in which case this submission will do more harm then good.
[quote=Peter]The most powerful message would actually come from the shattered families who financial planner spouses are currently suffering mental health issues (and there are evidently plenty) or worse as a result of some of these Orwellian measures we’ve been subjected to in recent years. Clearly no-one listens to us.[/quote][quote=Peter]The most powerful message would actually come from the shattered families who financial planner spouses are currently suffering mental health issues (and there are evidently plenty) or worse as a result of some of these Orwellian measures we’ve been subjected to in recent years. Clearly no-one listens to us.[/quote]
This is a very valid point and one that i can personally attest to. I have two young children and a currently non working spouse plus run a busy practice that unfortunately already brings a decent level of stress. Seeing my wife stressed and in tears because of her concern for our future is the human element that has been ignored. This is not about turning my back on education, this is about finding the physical time on top of business and family commitments to satisfy an ill considered set of requirements developed by politicians working on ideology that will do nothing to enhance advice outcomes to clients. Sadly for me burnout is a real possibility, but i have no choice but to push on as im sure many of us do.
The most powerful message would actually come from the shattered families who financial planner spouses are currently suffering mental health issues (and there are evidently plenty) or worse as a result of some of these Orwellian measures we’ve been subjected to in recent years. Clearly no-one listens to us.
Anonymous, i must say your statement sums up the kind of idiots we have in Financial Services, and congrats for being first in line!. The issues with FASEA are much broader than what you state. The process has and still is FLAWED, its not about being a dinosaur and rejecting change (mind you i’m only 41, been in the industry for 19 years, have a degree, diploma and CFP and if required i will do more) but this is about taking a stance of self respect and not being bullied or over regulated/governed by a system that does not understand the value we bring. The majority of advisers are well educated, ensure services are being given for the fees that being paid, and provide such an invaluable service to everyday Australian’s that unfortunately FASEA, and Hayne are slowly taking away through its over complicated governance. Have some self respect for yourself, your colleagues and your industry. The Fake news has left you gullible and looking like a bafoon. Stay United and have a cuppa mate.
The call for an exam extension will intensify once the FPA and others wake up and realise FASEA completely stuffed up the exam by failing to list the maximum marks for each question. Might sound like a minor oversight, but this was a requirement in the legislation so technically, the exam was invalid. I imagine this is part of the reason FASEA are sitting on the results and saying nothing. What a joke FASEA is. An invalid exam, an unworkable Code of Ethics and an education requirements program which is still yet to be finalised.
How long till someone looks at a class action due to mental health effects ????
[quote=Anonymous ]Right. So an exam that tests ethics and the laws surrounding advice you give on a daily basis needs more time ? You jokers should already be out on your arses. If your clients were aware that you were trying to get an extension or slam the process on these absolutely fundamental cornerstones of financial advice, they would and should drop you like a hot potato. You guys clearly live in a delusional stupor. Royal Commission ? Remember that ? FOFA – no advice for the fees your clients are paying for advice you’re not actually providing ? Remember that ? Bloated fees so that you can collect hidden commissions on pre 2013 products ? Remember them? Glad to see the departure of the dinosaurs is accelerating. Those of us left behind who have done the hard yards of study and work instead of heading off on pissy fund manager junkets of the past are over your whinging. Get a new job.[/quote][quote=Anonymous ]Right. So an exam that tests ethics and the laws surrounding advice you give on a daily basis needs more time ? You jokers should already be out on your arses. If your clients were aware that you were trying to get an extension or slam the process on these absolutely fundamental cornerstones of financial advice, they would and should drop you like a hot potato. You guys clearly live in a delusional stupor. Royal Commission ? Remember that ? FOFA – no advice for the fees your clients are paying for advice you’re not actually providing ? Remember that ? Bloated fees so that you can collect hidden commissions on pre 2013 products ? Remember them? Glad to see the departure of the dinosaurs is accelerating. Those of us left behind who have done the hard yards of study and work instead of heading off on pissy fund manager junkets of the past are over your whinging. Get a new job.[/quote]
Great generalization there, ? ? ?
[quote=Anonymous ]Right. So an exam that tests ethics and the laws surrounding advice you give on a daily basis needs more time ? You jokers should already be out on your arses. If your clients were aware that you were trying to get an extension or slam the process on these absolutely fundamental cornerstones of financial advice, they would and should drop you like a hot potato. You guys clearly live in a delusional stupor. Royal Commission ? Remember that ? FOFA – no advice for the fees your clients are paying for advice you’re not actually providing ? Remember that ? Bloated fees so that you can collect hidden commissions on pre 2013 products ? Remember them? Glad to see the departure of the dinosaurs is accelerating. Those of us left behind who have done the hard yards of study and work instead of heading off on pissy fund manager junkets of the past are over your whinging. Get a new job.[/quote][quote=Anonymous ]Right. So an exam that tests ethics and the laws surrounding advice you give on a daily basis needs more time ? You jokers should already be out on your arses. If your clients were aware that you were trying to get an extension or slam the process on these absolutely fundamental cornerstones of financial advice, they would and should drop you like a hot potato. You guys clearly live in a delusional stupor. Royal Commission ? Remember that ? FOFA – no advice for the fees your clients are paying for advice you’re not actually providing ? Remember that ? Bloated fees so that you can collect hidden commissions on pre 2013 products ? Remember them? Glad to see the departure of the dinosaurs is accelerating. Those of us left behind who have done the hard yards of study and work instead of heading off on pissy fund manager junkets of the past are over your whinging. Get a new job.[/quote]
Oh my, I have all my quals (minus basic bridging) done the exam and have worked in the industry for the last 7 years, I am only 29 years old… guess what, the oldies who only have diplomas out knowledge me 9 times out of 10 on the real world application.
I appreciate removing scammers mate but really is this statement at all ok?…
Who would ever work with you?…
[quote=Anonymous ]Right. So an exam that tests ethics and the laws surrounding advice you give on a daily basis needs more time ? You jokers should already be out on your arses. If your clients were aware that you were trying to get an extension or slam the process on these absolutely fundamental cornerstones of financial advice, they would and should drop you like a hot potato. You guys clearly live in a delusional stupor. Royal Commission ? Remember that ? FOFA – no advice for the fees your clients are paying for advice you’re not actually providing ? Remember that ? Bloated fees so that you can collect hidden commissions on pre 2013 products ? Remember them? Glad to see the departure of the dinosaurs is accelerating. Those of us left behind who have done the hard yards of study and work instead of heading off on pissy fund manager junkets of the past are over your whinging. Get a new job.[/quote][quote=Anonymous ]Right. So an exam that tests ethics and the laws surrounding advice you give on a daily basis needs more time ? You jokers should already be out on your arses. If your clients were aware that you were trying to get an extension or slam the process on these absolutely fundamental cornerstones of financial advice, they would and should drop you like a hot potato. You guys clearly live in a delusional stupor. Royal Commission ? Remember that ? FOFA – no advice for the fees your clients are paying for advice you’re not actually providing ? Remember that ? Bloated fees so that you can collect hidden commissions on pre 2013 products ? Remember them? Glad to see the departure of the dinosaurs is accelerating. Those of us left behind who have done the hard yards of study and work instead of heading off on pissy fund manager junkets of the past are over your whinging. Get a new job.[/quote]
Clearly the JOKER himself has spoken! Wake up and smell the roses buddy, you’re making broad statements on some dated ideology on how some, not all operated. If your an adviser, best of luck to you because I think you are the one that will need it going forward, probably more so in business given your bitter rant!
Right. So an exam that tests ethics and the laws surrounding advice you give on a daily basis needs more time ? You jokers should already be out on your arses. If your clients were aware that you were trying to get an extension or slam the process on these absolutely fundamental cornerstones of financial advice, they would and should drop you like a hot potato. You guys clearly live in a delusional stupor. Royal Commission ? Remember that ? FOFA – no advice for the fees your clients are paying for advice you’re not actually providing ? Remember that ? Bloated fees so that you can collect hidden commissions on pre 2013 products ? Remember them? Glad to see the departure of the dinosaurs is accelerating. Those of us left behind who have done the hard yards of study and work instead of heading off on pissy fund manager junkets of the past are over your whinging. Get a new job.
Many advisers started studying at a level well beyond the minimum requirements many years ago. And what happened? Conflicted FASEA Board members abused government bestowed power to force those advisers to unnecessarily repeat much of their studies.
And as noted by the FPA, some aspects of the new regime are still to be finalised. But they are currently being assessed by the FASEA exam and newly available bridging courses. Will the advisers who are doing these now be forced to do them again when the underlying content changes?
The clear message from FASEA is that no-one should improve their education or qualifications until the very last minute because they will be punished for voluntarily doing so earlier.
Almost made me want to rejoin the FPA after cancelling my membership of 30+ years…and then I woke up and realised they helped to create this mess so no more money from me.
The whole thing is beyond a joke now. Its not about whinging advisers and getting on with it as some claim (obviously people that are not advisers or stand to lose anything). It is about the unprecedented levels of anxiety and uncertainty created with how the whole FASEA debacle has been rolled out, delayed and conflicted, plus the consequences of no career if you don’t pass the exam (which effectively is not testing advisers on their competency of advising clients) is unacceptable. All of this on top of all the other disruption. I fully support the transition into a profession, as i do having to undertake more meaningful study to further up skill if needed, but when this comes at the cost of people’s lives, families, mental health and the possible future careers of advisers and their staff, it is clear that FASEA and the federal government has failed to deliver an effective solution that advisers can embrace and one with a real human toll. To those that simply claim stop whinging and get on with it, I congratulate you. Obviously, you are either a salaried individual, not a busy financial planner, have no skin in the game or a have very high opinion of yourself that differs from reality. The real reality here is that FASEA have failed. They are highly conflicted, have failed to deliver in the time frames they were given and have now put advisers in an even more precarious situation through no fault of advisers that have been kept in a holding pattern. The federal government need to disband the FASEA board, review and reset the requirements for advisers and re-legislate the timeframes to ensure that advisers embrace the reforms, whilst still recognising that clients still need advice from their advisers and advice needs to remain affordable. Time to make these facts know to you local MP.
[quote=Kath ]What a mess, I heard that 16 members of the AFA have taken their lives in the last 6 months post RC I don’t know how true it is, however I think pushing out some of the timelines are fair so everyone can grasp the changes effectively without impacting clients and the advisers mental health isn’t compromised. I personally didn’t wait just hoped what study I was doing in my Grad dip would be covered.[/quote][quote=Kath ]What a mess, I heard that 16 members of the AFA have taken their lives in the last 6 months post RC I don’t know how true it is, however I think pushing out some of the timelines are fair so everyone can grasp the changes effectively without impacting clients and the advisers mental health isn’t compromised. I personally didn’t wait just hoped what study I was doing in my Grad dip would be covered.[/quote]
If this is true, and I don’t doubt that it is…It’s 16 lives too many!
Do tell, Steven?
[quote=Julie]Many institutions are offering the bridging courses now. You obviously have not searched to hard.So who is the joke on???? Over whinging advisers get on wirth it.!!!![/quote]
You know what, Julie? I saw this coming as far back as 2012 when the FPA knocked me back on AFP membership because I didn’t have a degree or enough experience. I got off my butt, sacrificed my personal life for four years, and did a Financial Planning degree and it’s put me in the box seat now. BUT… it doesn’t make me non-sympathetic to the plight of my industry colleagues!
There are good advisers that are now faced with some tough years ahead doing the same hard slog as I did if they want to remain in practice. But the time-frames are tight, and consequently, there are clients out there who will be left in the wilderness if these advisers decide it’s too hard and they are going to exit. There are advisers whose mental health will suffer, and advisers’ families who will suffer alongside of them.
This whole thing has been a debacle and people have a right to be up in arms about it. Have a little sympathy, even if you have no empathy. As Kath mentioned below – there have already been suicides because of the stress which people are being put under – including one close to me.
Julie, you seem to have very strong opinion. I don’t agree with you at all and like you, don’t see the need to justify my view.
What a mess, I heard that 16 members of the AFA have taken their lives in the last 6 months post RC I don’t know how true it is, however I think pushing out some of the timelines are fair so everyone can grasp the changes effectively without impacting clients and the advisers mental health isn’t compromised. I personally didn’t wait just hoped what study I was doing in my Grad dip would be covered.
[quote=Julie]Many institutions are offering the bridging courses now. You obviously have not searched to hard.So who is the joke on???? Over whinging advisers get on wirth it.!!!![/quote][quote=Julie]Many institutions are offering the bridging courses now. You obviously have not searched to hard.So who is the joke on???? Over whinging advisers get on wirth it.!!!![/quote]
What an empathetic individual you are Julie !
I trust your clients are treated well based on your demeanor…but it’s unlikely.
Pffft, go away FPA. You started this circus, destroyed the industry and now you are pretending to care about advisers? What a joke.
Like many many good advisers, I am leaving your madhouse. Unlike many advisers, I have figured out how to continue giving great advice without this pathetic compliance nightmare, education rort and fee mafia zapping both me and my clients of precious time.
The end result is they pay less and I earn more. See you Fpa. Would the last member turn off the lights.
Many institutions are offering the bridging courses now. You obviously have not searched to hard.So who is the joke on???? Over whinging advisers get on wirth it.!!!!
c’mon FPA you should know that the Canberra Fat Cats and FASEA know best when it comes to making decisions that will stuff up an industry.. they are very capable of that (and not much else)
All FARSEA board members must also FULLY Disclose ALL real and perceived Conflicts of Interest.
FARSEA’s complete lack of Ethics forcing us all to do more Ethics courses, that as noted above aren’t even ready to do over 2 years into this process, is such a bad joke.
Over Bloody Complicated O’Dwyer has left the Advice industry in a fine FARSEA mess.
As usual, the FPA is preoccupied with treating the symptoms rather than the disease. A carving scalpel is required.
where was the FPA, last year, 2 years ago??? Too late and too little. I think they are finally realising that their renewal numbers are way down and will struggle to meet their huge salary bills…..
It’s never too late to try!!!
Too late, set the wheels in motion to leave. RIP Advice
definitely agree with the exam extension.