AFA general manager of policy and professionalism Phil Anderson told ifa the association had discussed providing regulatory relief so advisers could have some certainty around the compliance timelines for the exam in particular, with the remote proctoring process having caused problems for some advisers.
“We have raised the possibility of the government [extending the deadline] by regulation, and we’ve seen ASIC recently use their powers to provide exemptions, so there are other avenues,” Mr Anderson said.
“I think the government would prefer to do it through legislation, but we are saying if that is going to be materially delayed, for the benefit of certainty we would rather that it was resolved through some other means and the legislation could then be passed at the appropriate time.”
The comments come following Prime Minister Scott Morrison’s confirmation on Friday that Parliament would resume for a reduced three-day sitting beginning on 12 May, as Australia’s success at ‘flattening the curve’ of new COVID-19 infections allowed some MPs to return earlier than the previously announced August sitting.
However, Mr Anderson said the AFA was not confident that the FASEA extension bill would pass the Senate, where it has sat since passing the House of Representatives earlier this year, during the reduced sitting period.
“This is important for advisers but the country is facing many issues and some clearly are more substantial than this particular issue, so we are not unrealistically optimistic that this is going to be high on [the Senate’s] priority list when they get to Canberra,” he said.
An ongoing ifa poll that has so far had almost 370 responses reveals the lack of certainty around the FASEA compliance deadline is causing advisers the most grief amid the COVID-19 crisis.
When asked what the government could do to best support advisers through the crisis, 36 per cent of respondents have said the urgent passage of the FASEA extension bill should be the top priority.
FPA chief executive Dante De Gori echoed the poll’s sentiments that passage of the extension bill was “a critical issue for financial planners at this difficult time”.
“The FPA is aware of the time constraints that professionals faced prior to the COVID-19 pandemic and that time is even more restrictive now,” he told ifa.
Mr De Gori was more optimistic about the bill’s prospects and said the FPA had been in regular contact with the government and opposition on the issue.
“The FPA is pushing for the Treasury Laws Amendment (2019 Measures No.3) Bill 2019 to be a priority on the agenda when Parliament resumes in May,” he said.
“This bill is a lifeline for financial planners across Australia and will grant them the necessary extension to complete new education requirements at a time when they are out in our communities providing advice to Australians in need.”
Don’t become a financial planner kids – it isn’t worth the effort. Maybe one day we can just do our job and service our clients, rather than continually re-inventing processes and making change for no substantial benefit. I’m not opposed to education uplift, however with a Masters in Financial Planning, i had to redo a unit completed less that 2 years ago ($$$$) and now have to sit another exam ($$$$)… just gets exhausting and with every measure, the cost to service as a result of compliance obligations, overhead increases, red tape and additional office support required to absorb said changes will make the sector unaffordable to those who need it most.
The extension of the exam is about 100 on the list of important things that need to be fixed in financial planning in Australia but it is good to see that our representative bodies are spending time on it. Much easier than actually making it affordable to give advice to normal clients.
It feels like Wuhan Corvid 19. I’m over it,. If this is what we’re focusing on as an industry then surely you’ve got an obligation as a professional adviser to get into it,…. so we can focus on other matters impacting Australians. Isn’t that the ridiculous amount of red tape, an over bearing compliance regime, a lack of PI providers, prohibitive levies and taxes. Not to mention multiple regulatory bodies (TPB,ASIC,AFCA,AML), terrible software and an un-competitive tru independant sector ..all as a result of vertical integration. Finally, the lack of an industry body that put’s the needs of advisers and Australians first, unlike the puppets called the FPA that will sell their sole to get new members.
Do not fall into a trap of having industry representatives like the FPA, that are on the payroll of product makers, distract you by dragging this out or lull you into a false sense of “we’re working hard on this FASEA thing for you”.
Exactly STRANGULATION by BS REGS !!!!!
For godsake, there is so much time being wasted on this. We have an unworkable code of ethics, the red tape required to deliver service to our clients has escalated to the point of being ridiculous and these fools are worried about the Exam????? I am sick of hearing advisers complain about it.There have been 5 sittings already and now you can even do it from home. Just do the bloody thing so our professional bodies can start worrying about the important stuff.
Some of us have commitments to our families that are unmoveable ie being on maternity leave. Not only was I (and many other financial planning individuals) off for a large chunk of the time since the exam became available but coming back to work on a part-time/full time basis means there is no time to study and adjust to a new routine.
I have a question for you – in the last 12 months, have you been to a restaurant or the movies? Have you caught up with your friends or been to an event? Have you watched TV, downloaded a movie or streamed Netflix? If you have done any of those things, then you had time to study. The problem is not time, it is priorities.
I hated the concept of the exam. I despised studying for it and detested the fact that Greg Medcraft was the architect behind it. But the more I hear people winge about it, the more I am starting to think the exam is a good thing. It is quickly sorting out who the true professionals are. Maybe in the future, licensees, employers and regulators should look at the date an adviser passed the exam? It will certainly give a good insight into how professional the individual is. A true professional is willing to make sacrifices and regardless of personal circumstances, they will find the time necessary to complete an important requirement like this. Maybe not at the first sitting, but if not completed in the first 12 months, serious questions need to be asked.
“A true professional is willing to make sacrifices and regardless of personal circumstances, they will find the time necessary to complete an important requirement like this.” Inspiring stuff.
Well said. I teach at University level and see single mothers, who are pregnant, looking after teenage sisters and they work part time. All whilst completing University degrees. We all have our challenges and difficulties. A lot of people (with vested interests) are making this harder than it actually is. I can appreciate a first year entrant needing time to study but it’s an over reaction for many.
Why are they only working part-time?
well you’re a clearly jaded…
I am a professional who cares about my clients but guess what, my whole life isn’t financial planning, YES I take time with family and friends like any sane person does. Good job if you want to put it all on the side but I don’t and many others don’t and THAT’S OK… Whoever has told you its not has done you a disservice and you’re clearly living a very grey life.
Support your fellow advisers and understand people have other priorities, challenges and lifestyles then you or I might and that’s OK it doesn’t make them any less of a professional or a DECENT HUMAN.
Does make you a goose who can’t get the most important things done first though. The exam was not fun and was a pain in the @ss. I can think of much better ways to spend my time but I did the work. None of us who have passed already really care – except to issue this warning to you. If you get crushed by this, b/c you didn’t make it a priority – that’s on you. Career gone!
couldn’t agree more, recently put a post on FPA portal that said we should be not focusing on an extension and we all new the time frame if adviser didn’t get organised to find a time slot in 12 months to do the exam which requires no study then they shouldn’t be advising clients anyway
the Parliament next due to sit in August. Not seeing May dates anywhere I look.
Hi Brett, I don’t think the new dates have been updated in the sitting calendar yet, however the PM announced them in his daily briefing on Friday. – SK
Why don’t Advisers just enrol and sit the exam? The pass rate is high so most will pass. The energy spent trying to solicit an extension would be better utilised actually meeting the requirements.
Because you cant sit the exam you have to do it remotely which in itself creates more problems. Its not as simple as just turning on your laptop.
wow if it was that simple we would all be done by now, but its not
100%.. biggest bunch of whingers!!!!!!!!!!!!!
let people without financial planning qualifications to give withdrawal advice very quickly but can’t give a simple extension on education requirement they delayed in the first place becoming a bit of a joke really