The adviser education standards authority has issued an update to its proposed guidance on education pathways for advisers and the code of ethics, opening both to a public consultation process.
In a statement on its website, FASEA issued a rare update to its proposed guidance on education pathways, clarifying that all advisers with a bachelor's degree in a "related field" (including accounting, financial planning or advice, business, commerce, law or economics) will need to complete a bridging course of three study units.
Additionally, advisers with a degree and postgraduate studies in a related field will still need to complete a one-unit bridging course covering the new code of ethics created by FASEA.
The statement also specified that all advisers with one of these degrees will be eligible to complete a bridging course regardless of when the degree was obtained, adding that FASEA is working with higher education providers to "develop an approval process for bridging course offerings, with the aim of having several options available for advisers by the commencement of the 2019 academic year".
"This will allow a full five years to complete any necessary courses before the 2024 deadline," the statement said.
Interested parties can review the full guidance for education pathways and make submissions here, and read the draft code of ethics and make submissions here.
The full statement on the FASEA website can be read below:
The Standards Authority is today releasing proposed guidance on degree equivalence for existing advisers, as well as a draft Code of Ethics. The degree equivalence proposal clarifies the proposed educational pathways for advisers seeking to meet the new standards.
Advisers with a bachelor’s degree in a related field (accounting, financial planning or advice, business, commerce, law or economics) will need to complete a bridging course of three study units to meet these standards. This equates to less than one year of study if taken part-time.
Advisers with a bachelor’s degree and a postgraduate qualification in a related field will only need to complete a one-unit bridging course covering the FASEA Code of Ethics.
All advisers with these types of degrees will be eligible for the relevant bridging course option, regardless of when they obtained their degree.
The Standards Authority is working with higher education providers to develop an approval process for bridging course offerings, with the aim of having several options available for advisers by the commencement of the 2019 academic year.
This will allow a full five years to complete any necessary courses before the 2024 deadline.
Draft Code of Ethics
The Code of Ethics establishes core values to guide ethical behaviour, client care, quality of process and professional commitment amongst advisers.
The Standards Authority seeks feedback to the draft Code, particularly regarding the question of how advisers may be appropriately rewarded for their work while balancing consumer protection.
Clarity of Standards
The Standards Authority has sought to provide improved clarity to its draft standards and their delivery. The draft standards are streamlined and easier to navigate.
The standards also include a graphic providing an overview of the approach, as well as a summary of key terms and frequently asked questions.
The Standards Authority website has also been upgraded to provide more concise information, and provide ease of access to stakeholders to submit feedback relating to each standard.
For further detail on the new equivalence standard and code of ethics, see our full guidance release here: Standards
“We would stress that this guidance is still in the consultation phase – the Standards Authority very much welcomes your views on the practical implications of the standards,” FASEA CEO Deen Sanders said.
The company is looking to expand its services for financial advisers.
The FPA has developed a new SOA video toolkit to guide members.
“All advice should be regulated in a similar way”, a financial services firm has argued in its QAR submission.
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