In an update to members sent on Tuesday, AFA chief executive Philip Kewin said he had been in touch with shadow minister for financial services Stephen Jones, who had confirmed that the ALP would propose an amendment to the Treasury Laws Amendment (Measures No 3) Bill 2019, which contains the measures to extend the FASEA education and exam compliance deadline to 2022.
If the amendment was proposed, this would result in either the bill going back to the House of Representatives if the amendment was accepted; a resulting debate in the Senate if the amendment was tabled, leading to possible insufficient time to pass the bill; or the bill not being tabled at all due to the possibility of an extended debate.
Mr Kewin said this would come as disappointing news for members, but that the AFA had not given up on getting relief for the FASEA deadline through other means such as regulation.
However, he said the association was still calling on the federal opposition to pass the bill without the amendment, which does not relate specifically to the FASEA compliance deadline and which Mr Kewin said “could be dealt with at another time”.
In a statement released earlier on Tuesday, Mr Kewin said given the large number of advisers who had still not passed the exam, further delays to the bill could prove disastrous for both the profession and the rising numbers of consumers who needed financial assistance in the wake of the COVID-19 crisis.
“Financial advisers seeking certainty on this extension have been impacted by the closure of Parliament, delaying the necessary debate in the Senate and also the cancellation of face-to-face exams,” Mr Kewin said.
“The AFA reminds the Senate that at this stage, fewer than 30 per cent of current advisers have passed the exam, leaving 70 per cent who would be forced to cease providing financial advice if they cannot pass the exam by the end of this year.
“This leaves hundreds of thousands of clients of these financial advisers exposed, the same clients who are now increasingly reliant upon their adviser for support and guidance.”
Mr Kewin said the delays and uncertainty around implementation of the FASEA exam and education standards were causing unnecessary stress and distracting advisers from assisting their clients during the crisis.
“We want our members to be focussed on their clients, not only at this critical time, but all the time,” he said.
“The delay in passing this legislation is, however, causing anxiety and having an increasing impact on the mental health of financial advisers.”
Mr Kewin said the AFA was requesting the Senate to “take action” and immediately pass the bill during this week’s sitting to “avoid jeopardising the future and wellbeing of the advice profession and their clients”.
to give one thought on why we are where we are… I made an impassioned plea to the advisers in my AFSL to lobby their MP and professional bodies when the RC was just starting. How many did? only me! What was done by AFA & FPA? hand wringing and very little. Why? because the industry is full of advisers who did not care enough. she’ll be right mate attitude does not change society. When higher end advisers who see themselves as prima donna’s are not interested in the fate of the smaller ones, I knew it was going to be a waste of time convincing them. What can be done now? interestingly, it is not too late. we do need a united front. by-pass the associations. ignore petitions as they are ineffective. Direct action. Front up to your Fed MP’s in numbers. all at once. invite them to a rally. let them listen to real advisers. Lobby very hard each and every minister and shadow minister and assistant ministers who have any input into the system. Find their ties, if you can. leverage their ties or embarrass them. It is a fight. otherwise, leave the industry at once. when enough leave, they will change something to attract new ones in or others back. if we all resigned en-mass we would get attention. revolution does not happen by watching others…. only by taking direct action. yes, to resign means starting again in something else. it might also force a moratorium on quals to get you back once changes have occurred. think and act.
So true, but unfortunately you have hit the problem in the first half of the post. If they didn’t care then they certainly don’t now.
How much longer you mugs going to pretend that there’s a future in this industry
You only have to come onto IFA and read comments to see how and why we have ended up in the position we are all in now.
Its so easy to rip apart an industry when the players in the industry freely rip each other apart. What has happened with FASEA and all the regulation was like taking candy from a baby for them.
The big problem is that the writing is on the wall now for advisers. The industry bodies and the industry itself has now paved the way for them to walk in and do what ever they like as they know no one will stand in their way, thumbs up people.
No mate, this is just the free exchange of opinion happening here.
The reason the Industry is in its current state is the current and past Dealer Group boofheads who drove the Advisers off a cliff.
Yes exactly a free exchange of opinions. Those being the opinions and beliefs of the people that wrote it correct?
Very true dealer groups and product flogging got the industry in a mess, advisers charging fees for no service also got us in this mess.
But to sit here and try and pass the buck on the fact that we are so divided as an industry, and that made it so easy for FASEA and other regulations to go by uncontested from the royal commission. We spend more time on these pages ” free exchange of opinions ” calling others who we see lesser then ourselves names and the like.
Just imagine what may have been achieved if the egos and attitudes had been put aside and we as an industry put real pressure on the powers to be.
Would the same thing happen to solicitors or doctors?
Anyway its a mute point as its to late and way easier to hurl insults and abuse at each other
I appreciate your point. However, leaders do what you envisage here.
Whilst the Industry is run by people who are not qualified then we really have no hope.
Take the Group Executive, Advice at First State as an example with their Bachelor or Arts (or any one of a number of other examples of Senior AFSL management who don’t have FP qualifications or experience). Where was their public statement or submission to the “powers that be”? There wasn’t one that I saw. As long as senior people can collect big salaries and not actually be a Superannuation professional or represent the profession the then we’re all done for.
Very true and great point, i personally know a few that have no more then bachelor of arts and maybe an RG146. As you said they also have little to no actual planning experience and most have come through departments inside of the head offices.
The other one is certain AFSL hiring there mates from the banks
I don’t understand why anyone hasn’t attempted the exam yet. Never ever rely on Governments in the decision making process
I thought Peter Johnston and Nathan Rees had this all sorted with Labor????
Guys the exam is not hard, its mostly commonsense. You do need to know the new code of ethics inside out and brush up on the latest laws. Im 47, I did it, and am doing the 4 bridging courses as well, only have 2 left now. I have a young family, debts to service, I am a one man office and I could still get this done. Anyone thats scared of it please dont be, just back yourself, you will be suprised. If you really love your job and your clients, put everything else on the backburner and just do the exam. Dont whinge and whine as it does look bad for us in the general publics eyes. Good luck to those that will attempt it soon.
I feel sick reading all of the comments on this page “get off your arse and do it’ “you knew it was coming, your own bad luck if you haven’t done it” “I’ve done it why haven’t you” “dodgy planners haven’t done it.
how about some kindness to your fellow adviser. You don’t know what other people are facing. Lets stick together not tear each other down.
@ Ann Onymous, let me guess, you work for AMP? I actually feel sick at the continual over regulation, red tape and compliance caused by planners themselves. Why should I be continually punished by other planners lack of professionalism. As an adviser in this industry for 20 years I find it absolutely disgraceful that we’ve even had to have FASEA or a Royal Commission. We’re easy targets by Governments and it’s about time planners start to look at themselves, question there relationships, the role of industry associations, who they are licensed by, how they are paid, what there education standards are and ask How did we get here and why.
FPA and IFA in bed with dodgy financial planners. Support the government and implement FASEA education by the end of this year. If you extend the education more dodgy financial planners will remain and leave in 2022. It’s time to do the right thing by the clients, and good financial advisers and not extend the education requirement. Put a stop to dodgy financial advisers.
Every single adviser knew this was a requirement if you have left it to the last minute because you were hoping they would extend the deadline that is your own fault not the government’s not FASEAs, own up to your responsibility if you want to be an adviser this is what you need to do just get on with it and stop whinging.
this was known for a long time, all the advisers in my office have completed the exam, one failed and then took the exam again and passed it.
Our industry shouldn’t be trying to scare the public into relaxing the regulation, just get on with it do the exam it’s not hard for an experienced adviser to complete.
Why extend a full12 months? Whenever exams are back available, I’d suggest that the time frame only be extended by the time that it has been deferred. If exams resume in July, then just extend 3 months. Then people are still in the same position they were as before. 9 months to do it. Also no need to extend the additional study time beyond 2024, still plenty of time for that. Note that I’m one with the most study to do and I don’t want it extended.
This is great news for the professionals among us who have taken the time to prepare and sit the exam. We all had the same information and new the deadline, Here is to being a true profession
As a “professional” you would no that ‘knew’ is not spelt new!
Oh dear mate. Read your sentence again. There is a difference between knowing how to spell and making a typo on a keyboard.
SB, this is embarrassing. But you would no that.
Well said. Professionals make sacrifices. Unprofessional find excuses.
I’m pretty sure ‘Professionals’ don’t make derogatory comments about other people generally either. I went early and passed, but consider for a minute, that there might be other reasons as to why some advisers have been unable to sit it. My business partner was due to sit in February, having first completed the mandatory ethics bridging course first late last year. He and his wife lost their first child (and nearly his wife) just prior to sitting the exam and is still deeply effected by this. He will try and sit via remote proctoring in June unfortunately missed the cutoff date for April due to supporting his wife and his mind naturally being focused on this. Is he slack or dodgy because he made ‘excuses’ for not sitting the exam in February? Truly professional people don’t jump to conclusions without knowing the facts. Remember that when dealing with your clients, because it is a key component of the Code of Ethics.
Why don’t some of these advisers get of their backsides and get the exam done? They seem to have plenty of time to complain about FASEA. It’s unfair that these advisers are holding back the progression to professional standards that some of us aspire to. Consumers need confidence, go and do your FASEA exam and stop moaning it’s not that hard. AFA encourage your members to do the right thing instead of indulging the procrastinators.
So disappointed in the FPA. I will not be renewing my membership this year. I intend to join the cheapest body out there. There is absolutely no point in believing that we could ever have a industry or professional body representing planners. They’ve been a complete failure. If you can’t negotiate an extension of an exam during a Pandemic what chance would they have of doing anything else.
Yeah, yeah. I bet you renew. Just like everyone else who promises to leave the FPA but never does.
BTW this issue is hardly the FPA’s fault. They did negotiate in good faith and secure an extension commitment from both parties that was passed in the House of Reps. The problem is the unions have pulled rank on Labor at the last minute, and told them to kill it in the Senate.
Nope definitely out. I’ve paid my $500 bucks and did a TPB course and I’ll be saving $1,000 a year. You don’t think the FPA issuing a letter of support for CBA Management during a Parliamentary Productivity review into educational standards following the CBA advice scandal (in return for compulsory membership) helped or resulted in FASEA in the first place?
got in and did the exam early to avoid this type of issue, to provide space for a re-sit if needed, and to simply get it out of the way.
The exam is not going to go away, we know it has to be done, we have known about the deadlines, just do it, your taking a massive risk if you don’t. You really want to trust your future even more to the politicians and industry bodies?
Been wonderful so far…
Financial advisers are helping clients deal with an economic crisis caused by government shutdowns whilst politicians are playing politics with financial advisers livelyhoods.
like everything else in this industry – What a MESS. Between our associations, regulators and government, please lift your game!
So basically the Narcissists are running the country…nothing matters but their own self preservation. The lunatics are indeed running the asylum.
Labor is pissy that their cash-cow, union super, has come under fire as has their golden calf, ME Bank. This, ladies and gentlemen, is purely Labor thinking the covid19 crisis is largely passed and is their hissy fit tantrum attempt to hurt us and the Lib’s. to use good Aussie colloquialism, [b]”Bloody Wankers”[/b][b][/b]
When will we realise that Labor treat us as the enemy? Their position is not based on what constitutes better policy, it is based on Labor’s self interest and their rivers of gold from the Industry Funds.
Everything that Labor have ever done has been to white-ant us. It is nothing but rampant self interest on their part. So much for a conflict of interest.
and 50% of the Australian voter is labour toxic…what drives their thinking..if they think at all? What doctrines are and have been taught at the schools and universities?
It’s likely that those that will remain in the Financial Planning Industry are those who have no other career option. It’s hard to see that any self respecting adviser would continue to put up with the level of disrespect that has been consistently shown over recent years.
The usual time wasting exercise by politicians.
ALP will do whatever it takes to prop up their funders in the ISA hence anything to shaft advisers is fine by them.
HA! thank god!! good work Labor… Extension not needed, get it done and stop sooking!!
I’ve passed my exam but currently advisers that haven’t yet are supporting clients through the COVID-19 situation like the rest of us, that’s their priority. You’re just a dick!!
I would love for you to put a name to your comment.. see how tall you stand then, you’re clearly a child because no self respecting adult or professional would talk about others this way.
My thoughts exactly. Too much time being wasted on this issue. The FASEA Code of Ethics is the issue that needs urgent attention.
the whole bloody exercise is not needed…destroy this industry at ones peril!
Well said
Judging by the tone of your comment, I can only assume that the granting of an extension and in turn those advisers that have yet to sit the exam are somewhat of a threat to you and your business (if you are in fact an adviser at all)?! I also still hold a commercial masters (Marine) certificate which is governed by the Australian Maritime Safety Authority. They have just granted a 6 month automatic extension for renew your certificate of competency due to Covid-19 and restricted access to assessment options. On the basis of your comment….shame on them for doing so. Clearly because I have not been able to renew or demonstrate competency due to restrictions caused by Covid-19 I have completely lost my ability to operate a commercial vessel and am not committed! Its going to be embarrassing when I jump on board and scratch my head not knowing how to start the engines! FYI, I have done and passed the FASEA exam, but I am also not arrogant enough to overlook the fact that there are many good advisers out there that are trying to get this exam done as soon as possible, having had previously booked April and June sittings cancelled and trying to get set up for remote proctoring, which is great if you can.