FPA welcomes critical legislative milestone for financial planners
Financial planners have officially been granted more time to complete new education requirements following a successful advocacy effort by the Financial Planning Association of Australia (FPA).
The FPA has long supported the extension on behalf of its members and welcomes the passing of the Treasury Laws Amendment (2019 Measures No.3) Bill 2019.
The Bill amends the Corporations Act to defer the transitional timeframes for the FASEA exam and tertiary education requirements. The transitional timeframe for the approved degree or equivalent qualification will be deferred by two years to 1 January 2026. The transitional timeframe for the approved exam will be deferred by one year to 1 January 2022.
Dante De Gori CFP®, CEO of the FPA, said advocating for an extension of the FASEA deadlines has been a key priority for the FPA in recent months.
“The extensions to the deadlines for the FASEA exam and education standard have passed the Senate and will become law, which will be very welcome news for many,” Mr De Gori said.
“Today is a victory for our members and we are very pleased that financial planners now have more flexibility to complete their study,” 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 during COVID-19.”
The FPA has strongly advocated for bipartisan support of this extension on behalf of all financial planners across Australia to makes these important changes a reality. Mr De Gori stressed that lack of time remains a critical issue for financial planners across Australia as they cope with higher costs, increasing regulation and new education requirements.
“Today’s announcement will provide some relief to planners who are struggling to support not only existing clients but also providing the broader community with advice as many Australians find themselves in a financial situation they have never experienced before.
The government’s decision comes at a critical time for the financial planning profession. Financial planners must pass the FASEA exam by the end of this year or they will not be able to practice. Almost 7,500 financial planners have already sat the FASEA exam. This leaves nearly 16,000 planners to fill just three more exam sittings before the deadline.
Senator the Hon Jane Hume, Assistant Minister for Superannuation, Financial Services and Financial Technology, announced on 30 August 2019 that the Government will restore the full two-year period to pass the exam by extending the deadline for 12 months to 1 January 2022. The Government announced that it would also extend the deadline for meeting the FASEA education standard by 24 months to 1 January 2026.
“The FPA would like to thank Senator Hume for responding to our members’ request for assistance,” Mr De Gori said.