TheFinancial Planning Association(FPA) has lifted the bar for education with a mandated degree entry to its Certified Financial Planner (CFP) program from January 1, 2007.
FPA chief executive Ken Breakspear says the availability of courses offering degree majors in financial planning has reached a point where degree entry can be accepted as the preferred access point for the CFP program.
The FPA recognises around 15 degrees provided by education institutions across Australia.
A degree will be defined as a bachelor degree accredited by the FPA with a major in financial planning, which Breakspear says when combined with the CFP program, will give planners sufficient knowledge to deliver on consumer expectations of advice.
However, those with degrees in related disciplines, such as accounting, will still be eligible to apply for individual assessment under the challenge path entry to CFP.
Breakspear says while degree entry will not be compulsory in 2007, the mandate is more about “sending a very strong signal to the industry that this is the standard”.
The Diploma and Advanced Diploma in Financial Services (Financial Planning) (ADFP) will also continue to be offered beyond 2007, allowing a non-degree entry point for “experienced candidates”.
“Where a candidate doesn’t have a recognised bachelor’s degree, six years approved practitioner experience plus the ADFP or equivalent will be accepted for entry into the program.”
Another entry point will be to hold a degree in any discipline coupled with the ADFP or equivalent, a situation Breakspear says is consistent with the US and UK.
“There will still be other pathways, but degree entry will be the preferred and accelerated way to get into the CFP program.”
However Breakspear would not rule out compulsory degree entry to the program some time in the future.
“The expectation is that standards get lifted over time, but we can’t be exclusive at this time, as there are still people who have travelled different pathways to enter the financial planning arena. This is an important signal that this is the standard for people thinking of a career in financial planning.”
Breakspear says the FPA is also updating all CFP units in order to position it at a post graduate level, with candidates to find a “more academically challenging” program from semester one next year.
The FPA will also be announcing a Graduate Certificate next year which will help members transitioning to the new CFP requirements, who may not have completed a financial planning specific undergraduate degree.
