Education and professional standards requirements

On 20 March 2018, the Financial Adviser Standards and Ethics Authority (FASEA) provided new draft guidance on their proposed education standards for financial advisers and a proposed Code of Ethics. Consultation on the Code of Ethics closes on 1 June and consultation on the proposed education standards closes on 29 June.

FPA documents to help you understand the proposed standards:

• Decision tree: to help you work out which adviser category you fall into under the new FASEA proposed standard.
• Infographic: Proposed requirements for existing financial planners
• Infographic: Proposed requirements for new entrants

FASEA documents for your review:

• Fact sheet: FASEA education pathways for existing advisers
• Fact sheet: FASEA code of ethics
• Consultation paper: proposed guidance on education pathways
• Consultation paper: proposed standard on code of ethics

If you have any questions, please email [email protected].

The changes in the law

The Corporations Amendment (Professional Standards of Financial Advisers) Bill 2016 established a new education and professional standards framework for the financial planning profession which includes many measures of which the FPA has long advocated:

• The term financial planner/adviser will be enshrined in law.
• An independent standards setting body will be established from 1 July 2017, to set the education standards, professional year framework and continuing professional development requirements, as well as developing a comprehensive code of ethics for financial planners.
• New financial planners from 1 January 2019 will require a degree, to undertake a professional year and pass an exam.
• All financial planners, both new and existing, will be required to undertake Continuing Professional Development (by 1 January 2019), be subject to a code of ethics (from 1 January 2020) and pass an exam (by 1 January 2021).
• Existing financial planners who need to undertake additional study to meet the new education requirements will have until 1 January 2024 to meet the new standard.

Read the Minister’s media release

IMPORTANT LINKS

Corporations Amendment (Professional Standards of Financial Advisers) Bill 2016

Download the Regulations