Speaking to ifa about the government’s proposed Bill to enshrine the term ‘financial planner’, former Liberal leader and current chairman of Shartru Wealth John Hewson said professional tags should reflect qualifications and training.
“Far too many times in this industry have we seen individuals with little to no actual training – both technically and practically – causing untold harm to investors and by extension to the planning industry,” Hewson said.
“A medical practitioner requires specific training to become that; likewise a lawyer trains specifically in the law.
“The education required to become a financial adviser or planner should be as rigorous as any other university course.”
Calling for peer-assessed, industry-driven education and training standards to be introduced for the financial advice profession, Hewson said this would have a greater impact on investor sentiment than an enshrinement Bill.
“Until the actual training requirements pertaining to becoming a financial adviser or planner are standardised, then those holding themselves out to be just that may be inadequate and ‘enshrining’ the term will do little to create confidence in the industry or protect the reputations of advisers,” he said.
Hewson’s comments come as the Australian Securities and Investments Commission has announced it is postponing the national adviser examination, blaming heavy workload due to Future of Financial Advice (FOFA) reform implementation.
Both the Association of Financial Advisers and Financial Planning Association welcomed the move.
[quote name=”Andrew”]Tertiary education won’t get rid of the so called clowns. Education alone cannot replace experience. My brother was top of his agricultural college but he decided to forgo hands on experience for academia and now theoretically he’s a great farmer but he can’t run the family farm worth a damn.
My colleague has all the technical know how but cannot convey it in a manner that the client can accept or understand.
Tertiary is important..
This is why technical people make great para-planners and knowledgeable and experienced people make great advisers.[/quote]
I fully agree. Tertiary education can expand one’s horizons and facilitate the ability to research issues but does not in itself produce good planners. Empathy, communication skills, sincerity, awareness of basic human nature and patience are far more important attributes.
And further to my comments (I will add to the “if’s”…
if an adviser also listens(reads) twice as much as they speak (write) then that is another virtue of a great planner. And never assume anything – nothing. BTW – note the designation in my name was acquired via a tertiary education. NEVER assume anything when making comment or giving advice.
Tertiary education won’t get rid of the so called clowns. Education alone cannot replace experience. My brother was top of his agricultural college but he decided to forgo hands on experience for academia and now theoretically he’s a great farmer but he can’t run the family farm worth a damn.
My colleague has all the technical know how but cannot convey it in a manner that the client can accept or understand.
Tertiary is important..
This is why technical people make great para-planners and knowledgeable and experienced people make great advisers.
So are you threatened by having to actually do tertiary training – If you had a degree you wouldn’t be making such comments. forcing tertiary education will get rid of some of the bozo’s out there. I often have to pick up the pieces from a client of an ill educated FP’s mess.
An education and qualifications are simply the foundation (what was all that stuff about financial arithmetic?!?). If you have a genuine interest in your client(s) and what they are telling you; if you continue to read industry journals and technical stuff; if you keep your CPD points up (times two); if you continue to talk to your peers; if you attend fund manager sessions not just for the breakfast they put on; if you continue to place more strings on your bow; if you have a REAL and genuine interest in your career then I believe you can call yourself a financial planner (and t he list could go on…) Go back and have some more of your birthday cake Hewson.
Rob
good to see a process of mentoring in your camp and totally agree with comments-BUT your mate did display a dose of foot and mouth disease. Most planners have done the yards-education and experience–the “””sales people”” are the culprits and guess what sector of our industry promotes this practice, next please–must meet kpi and targets
The quality of advice in Australia is dependant on 2 things the first being the education and experience of the adviser but secondly the dealer group of which they are associated. As a member of Shartru along with John I can assure you that we are as focused on the dealer group part in this process.
However, if advisers want to be held in a certain regard by the public than you have to be willing to jump through the hoops. Personally, education is merely the start and needs to be matched with practical experience. Shartru as part of this process has a mentoring program for younger advisers who are in some cases more educated but not as qualified as their mentor.
Strikes me that Dr Hewson is suggesting that some formal qualifications should form the basis of the education process. Like doctors and lawyers the practical comes with doing law school and then working under an experienced lawyer or in a hospital as first year resident. Surely some structure to our education and qualification process allows us to combat perceived negativity. I’m not sure he’s suggesting that this will weed out those individuals that affect us by dishonesty – we deal with people’s hard earned money, so any adverse results are commented up quickly especially in the modern era of social media. I saw a figure the other day that only 2 out 10 SMSF trustees seek formal advice on their compliance, strategies etc. How do we change this? Surely a part of the fix is to implement some formality to our process. That might get the politicians of all faiths talking positively about us.
I am quite taken aback by the responses to Hewson’s comments.
Just as the medical profession would not let a graduate loose with patients, I don’t expect Hewson was suggesting that a degree would replace experience.
In my opinion, a good adviser requires a number of qualifications: (i) a high minimum level of theory and technical competence; (ii) an ability to engage with people (doctors call it bedside manner, we could call it sales) and (iii) experience. A good adviser requires all three.
I frequently disagree with Hewson. On this, I am 100% with him.
Nice to see an ex politician passing such judgements truly helpful to us all. Wake up please, I undertook mine via University and sadly it took the dealer group to educate me.
What political gain could there possible be from passing such uneducated comments, or apologies to writer if they have in fact undertaken the required education and are actually heavily into advising or does a Chairmans role give required expertise.If it does I am sure everyone will go that pathway as it would be easier.
here we go again, bagging the financial planners, we have to be accountants, lawyers, valuers, analysts, physcologists, councelors, social workers, politicians, prophets to forcast the future, mind readers, Gladiators to fight the unions, IT professionals…… is there anything else we have to be now ??????? IFA magazine are you on our side or the Unions/labor side trying to turn the liberals against us, use some decent stories for a change
Education standards only provide a measure of intellect. I was a full graduate when employed by a dealer group but I still cringe when I look back at the advice I gave to my first three years worth of clients. A university degree is great, but it is worthless without the experience of being mentored by a private practice adviser with a strong moral compass. Dont get me wrong, my dealer group had plenty of resources for me to draw upon but sales are sales and rabbits breed rabbits. Its going to take more than a minimum education standard to alter the publics view of Financial Advisers because ours is a service that is rarely sought out and so it has to be sold, therefore we are no highter on the professional totem pole that Real Estate Agents.
I have been a Financial plannerf for 25 years having put up the proposal to the newly created Westpac in 1982 that it needed to establish a Financial Advisory Service. I have held my DFP from Deakin Uni since early 90’s and at that time the FPA stated that “if Planners do not hold the Deakin qualifications by 1996 they will not be able to practise”, however, DID NOT enforce the statement.
I have seen the “Plans” of some terrible “Planners” and do know of one institution that gave staff three weeks training and “you are a Financial Plann er”
Fortunately, in these days most Planners do have better training and their Dealer is keeping their fingers on the pulse.
How well educated are the developers and advisers who produced and sold CFDs world wide? How well educated are the researchers and analysts who gave the CFDs a AAA rating. Advisers don’t lose clients money, product suppliers do. BTW many CFPs sold Westpoint
WOW, from the man who could NOT articulate his invention— GST. Loose words that slur the reputation of the majority of GOOD/GREAT advisers. Pick on the dealer groups that allow inexperienced advisers AND regulators who don’t / didn’t act on the storms/ dury management etc when they were informed by many that there were problems. Those with the education and experience should send a message of disdain to idiots like hewson. Loose words emanating from the chairman of what!!!
The qualifications are joke to be a FP, until the industry has min qualifications such as Accounting & law, professional l year where your work surpervised & obtain a public practice certificate
Rember FP came from insurance sales & develoiped through that
Here we go, more red tape, more cost. Listen up you bozo polies with half a clue & no actual experience to make these calls. Experience, quality dvice and track record is EVERYTHING! Too many times i have met fools with degrees. How about ridding this industry of dealer groups and education providers. You know, the leechers of the country who grow fat from this kind of nonsense. Yes you need to be educated but dont discount real experience couple with a great advice record. Self interest groups & Fools are running this show.
I suppose we could apply the same logic to MP’s
And the first and only part of their training would be ethics courses and a psychometric measure of intention to act with integrity
About time. We have seen over the past 10 years many half heated attempts to bring the word ‘professional’ into the FP industry. It’s not there yet. If FP want the respect of an accountant then they must be prepared to study and pass professional exams, like an accountant.
Will a transition like this every happen – IMO not in the next 20 years.