During the parliamentary joint committee into corporations and financial service’s recent meeting on oversight of ASIC and the takeovers panel, Mr van Manen expressed concerns that degree qualification alone will not adequately prepare advisers.
“It’s all well and good to have all of these ‘qualifications’, but, to me, experience is still extremely important,” he said.
“You need to know how to apply those qualifications practically, on a day-to-day basis, to assist clients.”
In response, ASIC deputy chair Peter Kell noted that FASEA’s consultation on recognition of prior qualifications and experience was not yet complete, adding that the issue raised by Mr van Manen was an important one.
“I think the issues you’ve pointed to are genuine issues that they’re grappling with and consulting on at the moment,” Mr Kell said.
“I agree with you on the experience requirement. I think one of the beneficial features of the new requirements is supervision for new advisers; a professional year – in other words, a recognition that experience needs to also be built into the overall set of qualifications that are required.”
The regulator sees recognition of prior experience as a real issue and will participate in the consultation, but it will ultimately be FASEA that makes the decision, he said.
Before entering politics, Mr van Manen was a director of Queensland-based Vangrove Financial Planning, which was placed in administration in May 2012.
In May 2016, former Vangrove director Andrew Cosgrove pleaded guilty to a number of charges brought by ASIC.
Looking around in the industry I find the only people crying about experience are those without the aptitude to complete a full degree and have been getting away for decades on their ‘experience’. Whilst they put clients in a better position the advice they give is often demonstrably second rate due to a lack of technical understanding and ability.
Having changed careers from Accounting to Financial Planning and having just completed a grad cert in FP and starting in an entry level role in FP only this year. I agree that a degree should not allow you to automatically entitle to you to advise. I have found that the short period I have been in my current role far more valuable than a degree alone. Some sort of mentor program or supervision would be the way to go. I definitely value experience but perhaps experience and a qualification will go hand in hand
As a financial planner of 28 years experience with one of the big four banks, and with a CFP, I find it amazing that the government at the stroke of a pen can make these qualifications null and void. I know there have been no firm decisions made either way, but all of the other planners I have spoken to, with over 20 years experience, have said they will leave the industry if they are forced to gain extra qualifications. Having a degree doesn’t make you a better planner, it just satisfies some bureaucratic mandarins.
28 years experience and a grandfathered CFP are not qualifications. They are experience and an (undeserved) designation. Sorry but it’s very hard to feel sympathy for anyone who masquerades under a professional designation for 15 or so years without making any effort to get professional qualifications.
After having industry participation the crash of, 87 and the GFC, I can safely say experience beats education every time.
RG146 already covers Experience and Professional designations:
“RG146.75
Experienced advisers who do not have relevant qualifications can meet the
training standards by being individually assessed by an authorised assessor.
To be eligible for this option, advisers must have at least five years relevant
experience over the immediate past eight years in the areas in which they
advise.”
“RG146.78
We will recognise professional association designations where the
qualification on which the designation was granted is listed on the ASIC
Training Register”
Guessing you didn’t actually read the document in full. Otherwise you would have seen this
[quote]Important note: Effective 24 September 2012, this section will be under review. The review will be undertaken in consultation with industry, with a consultation paper anticipated for release in December 2012. The review will enable ASIC to explore options pending final policy positions following from
Consultation Paper 153: Licensing: Assessment and professional development framework for financial advisers.[/quote]