With the Financial Adviser Standards and Ethics Authority’s (FASEA’s) education reforms looking inevitable now, advisers need to turn their mind to where and how they will study once the changes kick in.
Technical manager at wealthdigital, Rob Lavery, said that once planners worked out what further study they needed to do they would then need to choose a provider from the “explosion” of postgraduate financial planning qualification courses that had cropped up in the last two years.
Planners should compare factors such as entry requirements, whether it is offered face-to-face, by distance or both, the length and frequency of study periods, cost, the types of assessments, the course content and the reputation of the educational institution.
Lavery warned that, importantly, planners should consider providers’ policies on recognition of prior learning, as these could stall their progress through their qualifications if not properly managed.
He said that advisers then needed to determine when they will study to ensure they had completed the necessary subjects by FASEA’s deadline of 1 January 2024.
“The key is to not leave it until the last minute. Planners who start their study sooner will have more time to complete their course and will find it easier to fit their study around their life,” Lavery said.
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And it is interesting that there isnt one University in WA that offers any "approved" units, if we could ever work out what that are.
From everyone I've spoken with I would say well over 50% of advisers are already planning for it. Early retirement that is! Me included as I would only see 3 extra years in the industry before my planned retirement and I am a pretty average age for the industry so why would I bother with the expense or time?
Wanna get some free publicity for your product or service? Put out a press release about how to comply with FASEA!
All advisers are desperate for useful guidance on FASEA but until FASEA actually confirms its requirements everyone is flying blind. So put out a press release that purports to help, and it's guaranteed to get a run in the industry press. But get in quick, because FASEA might actually tell us the facts soon.
The education requirements by 2024 are not the most ominous problem at present. Before 2024 everyone has to pass the national exam by the end of 2020. I expect that 70% of advisers will be eliminated by the exam. They will either fail the exam or quit the industry before having to complete the exam. The exam covers three subjects including an assessment on section 7 of the Corporations Act. We are told that a mark less than 75% on the Corporations Law assessment will be a fail. I have studied Corporations Law and I can say that it will be very challenging for most advisers to obtain a mark in excess of 75%. My comment is based on the fact that no education specific to the exam will be provided.
i wonder if the exam will apply to everyone? or will call centre staff be exempt? or roboadvice be exempt?
That is a good question Robin. However, I suspect that call centre staff will be exempt especially if they work for Industry Super Funds. I am also quite certain that the developers of roboadvice, such as Bernie Ripoll!!!, will also be exempt.
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