FPA responds to FPEC criticism

The FPA has clarified its relationship with the Financial Planning Education Council and role in the mandatory standards regime following concerns voiced by members.

On Friday, ifa aired comments from an FPA member claiming to speak on behalf of a cohort of fellow members that took aim at the association for its close personal ties to the FASEA board and the role played by its FPEC subsidiary.

In response, an FPA spokesperson has issued a statement of response, seeking to clarify a number of issues raised in the article.

“With regard to the Financial Planning Education Council (FPEC), the FPA partnered with the higher education sector in 2011 to set up FPEC with the aim of establishing a curriculum for financial planning degrees, and a process to approve university courses against this curriculum,” the statement said.

“Through its charter, FPEC has the authority to approve individual programs that satisfy requirements for admittance to the FPA membership category Financial Planner AFP, and for entry into the CFP certification program.

“FASEA announced in October 2017 that it would adopt the FPEC framework and approved list of degree courses for new entrants from 2019. There has been no change to the ownership or operation of FPEC following the announcement in October, and FPEC continues to operate in accordance with its charter and accreditation framework.”

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More broadly, the statement indicated that the FPA will be embarking on a consultation process with members ahead of providing guidance to FASEA.

“In December 2017, FASEA released its proposed guidance for consultation on education requirements for existing financial planners,” it said.

“Consultation is open until 29 June 2018 and the FPA will be participating in this process, which will include consulting with our members and other stakeholders.

“The FPA intends to respond in support of members and financial planners to ensure that the requirements are fair, reasonable and practical.

“We will be advocating on behalf of financial planners who have proactively completed studies that exceed the minimum RG146 requirements, and this aligns with the proposal in our 100-point plan.”

The statement also reminded existing advisers that they have until 1 January 2024 to transition to the new standards regime.

FPA responds to FPEC criticism
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