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

FPA gathers member feedback on FASEA’s new guidance on proposed education standards and Code of Ethics

The Financial Adviser Standards and Ethics Authority (FASEA) provided new guidance on its proposed education standard and Code of Ethics for financial planners on Tuesday 20 March.

FASEA has now started the consultation period, and the Financial Planning Association of Australia (FPA) today sent its 13,700 members and affiliates an online questionnaire to gather feedback on the potential impact of the proposal.

The FPA is simultaneously reviewing the guidance on FASEA’s new position and the implications for the financial planning profession.

Commenting on the new education and professional standards guidance, Neil Kendall CFP®, Chair of the FPA, said, “The FPA strongly supports the raising of minimum education standards and recognises those financial advisers who have voluntarily completed, or are undertaking further education.

“We believe FASEA’s latest proposal does not give sufficient recognition to financial advisers who have completed a degree and undertaken additional studies in financial planning. Failure to recognise study completed by existing financial planners is likely to reduce the availability of financial planners and drive up costs for consumers.

“It is important for everyone to recognise the FASEA education standards are part of a comprehensive package of changes, and these components need to be considered and assessed as a whole.”

In addition to the proposed education standards and Code of Ethics, FASEA will put in place an exam to ensure that regardless of the education pathway, financial advisers will have the required level of knowledge to provide sound advice.

Feedback from FPA members on the draft Code of Ethics will be very important as this is the first FASEA requirement that financial planners will need to meet. Consultation on the Code of Ethics closes on 1 June 2018, and consultation on the proposed education standards closes on 29 June 2018 as previously announced.

“The active participation of our members in the consultation period is important so that they can be heard. We would expect all members have now had the opportunity to review the latest FASEA announcement, and we strongly encourage them to take the time to complete the questionnaire,” said Mr Kendall.