After months of consultation, FASEA has released details of its updated standards framework for financial advisers.
The Financial Adviser Standards and Ethics Authority (FASEA) received over 800 submissions and has made certain changes to the framework from the feedback.
New entrants to financial advice will require an approved graduate diploma and will be able to seek recognition of prior learning (RPL) from the education provider as per their credit and learning guidelines.
For existing advisers, FASEA will provided guidance on credits for previous course work undertaken, with an advanced diploma of financial planning eligible for two course credits.
Course work undertaken to attain an industry designation will also be eligible for two course credits and the related degree definition has been revised so advisers will be able to undertake an AQF8 graduate diploma.
Advisers will be able to seek RPL for the Corporations Act and behavioural finance client and consumer behaviour bridging course, but will not be able to for the newly created code of ethics bridging course.
FASEA will also revise the Corporations Act course to include other legal obligations like the Privacy Act and Tax Practitioners Board.
The financial adviser examination will be split into three modules and will test the competency in the Corporations Act, financial advice construction, and ethical and professional reasoning and communication.
The exam will be set over 3.5 hours but will be open book and a curriculum framework and practice exam will be available to advisers.
FASEA has also reduced the CPD hours for advisers from 50 to 40, of which 70 per cent need to be approved by the licensee.
The authority has also revised the code of ethics for advisers in a manner that is consistent with legislation.
FASEA chief executive Stephen Glenfield said the revised standards were an important step forward in finalising the requirements.
“The detailed consultation input was valuable to FASEA in creating standards which address industry and consumer needs while at the same time balancing FASEA’s legislative obligations,” Mr Glenfield said.
“Industry and consumer feedback has helped to create a balanced set of standards that, taken as a whole, offer a workable framework for how the industry will evolve into the future – for the benefit of both advisers and consumers.”
Eliot Hastie is a journalist at Momentum Media, writing primarily for its wealth and financial services platforms.
Eliot joined the team in 2018 having previously written on Real Estate Business with Momentum Media as well.
Eliot graduated from the University of Westminster, UK with a Bachelor of Arts (Journalism).
You can email him on: [email protected]
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