TheFinancial Planning Association(FPA) has confirmed long running speculation regarding its education progam by ceasing to offer education to members directly, and will seek to use external third parties under an outsourced arrangement.
The FPA board met on Friday to discuss the future of education in the industry body, after it stated last month that it would post a $2 million deficit for 2004 due in part due to a fall in education revenue, prompting the board to make the decision.
According to a note sent to FPA members by board chair Steve Helmich the FPA will outsource the provision of education but will direct the educational standards of FPA members through the Certified Financial Planner (CFP) program.
In the note Helmich says the FPA will set up a body within the association to establish standards and review and accredit external education providers for formal education and continuing professional development (CPD) programs.
The FPA would also continue to reatin control over and direct the CFP education program and the CFP Certification Assessment program.
The FPA flagged the decision regarding a change in education policy last month when it told members about the deficit with Helmich stating at the time that lower than expected enrolments in the association’s education programs contributed to much of the deficit, with net income in education falling $3.2 million below full year forecasts.
The FPA says the lower enrolments were due to competition in the education market with chief executive Kerrie Kelly stating it would maintain control over providers in the market place through its role as the standard setting body.
According to Kelly, the number of other education providers in the market means “it’s not feasible for the FPA to be a sole provider of education”.
Helmich and Kelly also say rather than provide entry level education for members, the FPA wants to focus on higher levels of education, for example promoting and developing the CFP designation.
