Coalition MP and former financial adviser Bert van Manen has questioned ASIC officials about the recognition of work experience and designations such as the CFP under the incoming education standards.
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.
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