FINSIA forerunner’s qualifications pass the FASEA test
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FINSIA members who completed their SIA Graduate Diploma in Financial Planning before December 2008 have degree equivalency under FASEA’s new must-have qualifications regime.
Legislation covering the acceptance of previous qualifications and professional training taken by experienced financial advisers is still in draft form.
But the government’s new education and ethics standards regulator FASEA is expected to sign-off on recognising those qualifications previously offered by the Securities Institute of Australia.
With the deadline for those financial planners committed to staying in the industry looming, it is definitely a piece of good news following months of uncertainty.
A survey of FINSIA members and a slew of similar opinion polls carried out this year suggested an exodus of financial planners from the industry because of the new learning requirements.
Almost a fifth of those surveyed by FINSIA said they intended walking away from the business rather than sit through courses and exams being required by FASEA. Another third of the respondents said they were unsure if they will exit the industry.
FASEA — the Financial Adviser Standards and Ethics Authority which was set up last year to oversee training and ethical standards for licensed financial advisers — will require all advisers to meet its proposed education standards by 1 January 2024.
Head of Standards and Education Kylie Blundell SA FIN said it was good news that the industry was getting clarification regarding recognised professional learning.
But she added that other financial planners wishing to continue needed to bite the bullet to meet the new standards.
She said: “From our reading of the draft legislative instrument we expect the Graduate Diploma in Financial Planning previously offered by the SIA satisfies you for degree equivalency if completed by 31 December 2008.
“It’s good news for all of those financial planners who took the courses and have gone on to develop their skills in the workplace, building up their businesses in the process.
“We know there has been a great deal of confusion and worry about what previous training would be taken into account by FASEA. At least we now know where we stand.
“It should be noted this legislative instrument is still draft and is yet to be confirmed. But we expect it should go through.
“For those, who haven’t got the educational requirements they are ultimately going to have to meet the new requirements.”
Research carried out by UBS, which also predicted an industry exodus, suggested that the average existing adviser would need to undertake 642 hours of study by 2024 - with half the 25,000 registered advisers needing to do 960 hours.
FASEA chief executive Stephen Glenfield defended the stance of the new ethics regulator when he appeared at the Financial Planning Association of Australia (FPA) congress.
He said: "We're trying to put in place a workable solution that meets the interest of lifting standards for consumers and produce a pathway for financial advisers.
“We want to recognise the past qualifications of people in our new education pathways.
"We've worked hard to address and simplify this complex challenge, operating in an environment of divergent, sometimes passionate, and occasionally misinformed poets of market discussion regarding our task.
“FASEA believes the standards blueprint represents a practical and workable response.”
FPA chief executive Dante De Gori agreed the uncertainty had been a worry for the industry but said that having a degree to stay in practice would be of benefit to everyone.
"We support the need to raise the standard. It's also about continuing professional development, code of ethics and minimum standards for a professional year."
