The Financial Planning Standards Board (FPSB) has released a guidance document in support of supervised work experience for financial planning entrants.
The document is in line with the board’s recommendation that entrants to the industry globally complete a year of supervised work experience.
“FPSB recognises the importance of work experience for entrants to the financial planning profession and believes that supervised practice is the preferred way of gaining professional experience,” FPSB chief executive Noel Maye said. “Supervised experience programs can help bridge the gap between financial planning theory and practice to enable new entrants to the profession to develop a thorough and competent understanding of the practice of financial planning.”
The document was created following input from a six-member working group, consisting of representatives from China, Germany, Japan, New Zealand and South Africa.
Working group chairperson Wessel Oosthuizen, who is also a director of the Centre for Financial Planning Law at the University of the Free State, South Africa, stated that the guidance document was developed to support new entrants as well as their supervisors in establishing a model for ensuring appropriate depth and breadth of experience in financial planning.
The guidance document includes a declaration of adherence to the FPSB’s code of ethics and professional responsibility, and details what ‘supervised experience’ entails, covering the abilities, skills and knowledge described in the FPSB’s Financial Planner Competency Profile. The document gives guidance to supervisors on how to assess candidates as they work through the financial planning process, including the collection of client information and client engagement, asset and risk management, as well as tax, retirement and estate planning.
The FPSB, which owns the Certified Financial Planner accreditation mark, has also released a guidance document around its Financial Plan Framework, which it stated helps new entrants to the industry write viable financial plans, while supporting certifying bodies to assess their competency.
