The Financial Planning Association of Australia The Financial Planning Association of Australia

FPA calls on ASIC for further clarity on national standards

The Financial Planning Association (FPA) has responded to the ASIC announcement yesterday on the next phase in its proposal to implement a national exam for financial planners. The FPA is calling for more clarity on the information provided through today’s media release.

“We are eager to receive more information from ASIC on their proposal for a national exam for financial planners. There are a number of areas that need some clarification in the release issued today, including the standards the proposed exam will meet and the proposal of a Self-Regulatory Organisation,” said Mark Rantall, CEO of the FPA.

Whilst the current terms were deemed unclear, the FPA supports improving the quality of financial advice for Australians.” Increasing the quality of financial advice continues to be a priority for the FPA and we have continually raised standards for financial planning over many years.”

“The FPA acknowledges that the current RG146 standard is below par and agrees that a higher national standard needs to be set to build the trust of consumers.”

“The FPA has been playing an important part in raising standards for the profession with all members meeting high entrance standards and CFP® practitioners have the highest certification available to financial planners worldwide. We feel CFP® professionals have already met higher standards , sign up to 40 Continuing Professional Development hours per year and therefore should be given relief from initial examinations ” Mr Rantall said.

The FPA believes this announcement highlights the importance of legislating the term ‘financial planner’. “This is another example where the legislation of the term ‘financial planner’ will benefit consumers. Even with a national examination introduced, Australians will still need to be protected by ensuring the person they seek advice from is a qualified financial planner who has signed up to the highest educational and ethical standards.”