Education and professional standards requirements
In its response to the FSI, the government agreed to support recommendations that improve trust and confidence in the financial planning profession, including:
- The establishment of an independent standard setting body, operational from 1 July 2016 that will set education standards, professional year and continuing professional development (CPD) requirements.
- New financial advisers will require a degree, undertake a professional year, pass an exam, and subscribe to a code of ethics.
- Implementation of appropriate transition arrangements for existing advisers including the development of a Recognised Prior Learning (RPL) framework that incorporates the value of previous education, on the job training, CPD, and experience.
- All advisers both new and existing will be required to undertake continuing professional development (CPD) and be party to a code of ethics.
- The new education and training requirements will be effective from 1 July 2017, with the code of ethics requirements coming into force from 1 July 2019.
- ASIC’s Financial Adviser Register will be enhanced to include relevant bans and disqualifications or code breaches.
The government has also agreed to support the recommendation to rename ‘general advice’, a recommendation put forward last year in the FPA 10 Point Plan.
Draft legislation to bring the above into effect has been released for consultation with submissions due by Monday 4 January 2016.
The FPA will work with the Government to ensure consideration is given to the practical issues of any changes for both consumers and financial planners.
Read the Minister’s media release
Download our Q&A on how the government’s proposed changes may affect you
FPA’s full opening statement to the PJC Inquiry
FPA’s proposed Professional and Education Standards Framework
FPA submission to the PJC
FPA supplementary submission to the PJC
We are always keen to hear your valuable feedback and suggestions. Please let us know if there are any policy issues or concerns that affect you.