FASEA demands ‘L-plate’ logbook from advisers

New advisers will be expected to keep an accurate record of 1,600 hours of work activities under the Financial Adviser Standards and Ethics Authority’s professional year regulations.

According to FASEA’s Corporations (Work and Training Professional Year Standard) Determination 2018, a new adviser must complete and maintain a logbook of the hours spent on work activities and structured training during their professional year.

During the professional year, advisers must complete at least 1,500 hours of work activities as well as 100 hours of structured training activities conducted as a separate activity from work activities.

The adviser must also keep details of the work activities and structured training undertaken, including when they were undertaken.

In addition, the responsible licensee of the adviser must ensure that, before they have had any direct or indirect interaction with a retail client, the client is informed, in writing:

  • that the person is undertaking supervised work and training; and
  • of the name and contact details of the person’s supervisor.

In a submission to the draft professional year legislative instrument released in July, Deakin Business School associate professor Adrian Raftery said that, given the quantitative nature of the number of hours that need to be logged, a resource in the form of an electronic timesheet may need to be developed to accurately record/log the time that new advisers spend during the professional year.

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“It is a concern of the Deakin Business School that logbooks are prepared on the last day of each quarter rather than progressively,” Mr Raftery said.

“To provide a level of assurance, it is suggested that weekly timesheets may need to be prepared and then signed off on a regular basis by supervisors.”

Further, Mr Raftery suggested it is “absolutely imperative” that logbooks are subsequently submitted, approved and/or regularly audited by the regulators (either ASIC or FASEA) as part of a registration process to becoming an adviser to ensure that this training of new entrants is adequate in a timely manner.

“The Deakin Business School would encourage that strong penalties are put in place against supervisors and licensees if there is found to be inadequate training and supervision during the PY of a provision relevant provider,” Mr Raftery said.

“The draft legislative instrument appears silent on the matter of such penalties or sanctions.”

FASEA demands ‘L-plate’ logbook from advisers
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Adrian Flores

Adrian Flores

Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.

You can contact him on [email protected].

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