Advisers question FASEA’s two-thirds discount

3 July 2020

A number of financial advisers have questioned an assertion by Financial Adviser Standards and Ethics Authority (FASEA) chief executive, Stephen Glenfield that FASEA is “offering a two-thirds discount for experience” when it comes to advisers reaching Bachelor degree recognised status. 

Glenfield made the claim in an opening address to the House of Representatives Standing Committee on economics, a transcript of which was released on Thursday, but advisers are claiming that such an assertion is disingenuous. 

One adviser told Money Management that the two-thirds discount claim did not reflect the reality that he had passed the FASEA exam and his ethics unit and now had seven more units to complete inside the prescribed five-year time-frame. 

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Other advisers pointed to the fact that the New Entrant (Career Changer) – Postgraduate pathway was described by FASEA itself as “ typically consisting of eight courses or more offered by a TEQSA Registered Provider and contains the FASEA Financial Adviser Curriculum as a core part of the program”. 

“On that basis, where is the reality of the two-third discount?” one asked. 

In his opening statement to the Parliamentary Committee, Glenfield said: “FASEA recognises the past experience and learning from existing advisers who do not hold an approved degree. In recognition of their practical experience current advisors who do not hold an approved degree are required, at a maximum, to complete an 8 course Graduate Diploma rather than a 24 course Bachelor degree”. 

“In effect this is a 2/3rds discount for experience. With a transition period to 1 January 2026 this means an existing adviser with no bachelor or higher or equivalent level of study will, at most, be required to complete approximately one subject per year to meet their education requirement.” 

“Advisers who have completed relevant degrees or other forms of equivalent study are required to do less than this through FASEA’s recognition of relevant degrees and prior learning,” Glenfield said.  

“For example, a stockbroker who has not completed an approved degree at bachelor level but has completed the historical Securities Institute Graduate Diploma of Applied Finance and Investments will only be required to complete an ethics bridging course to meet the education requirement.” 

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I'm growing tired of the lies coming out of this organisation. They have zero support from the adviser community.

FASEA and their process has been a failure.

What a crock statement.
The only people who may get a 2/3 discount are those who obtained a Bachelors degree after 2013.
There are plenty of advisers with degrees prior to this date, some with MBA's ,Law degrees and B Com that are no longer recognised by Mr Glenfield as his band of merry men at FASEA.

There are plenty of old CFP's who did the full Diploma of Financial Planning via Deakin University prior to 2003 that are not recognised by FASEA who have had to do 40 hours of CPD education every year since.
Mr Glenfield, you're just not fair dinkum or honest with your statements to the Parliamentary Committee.

The FASEA fiasco continues along with the exodus of experienced advisers from the industry.

Is it not an offence to perjure yourself before a Parliamentary Committee?

So existing Advisers with years of experience, ongoing CPD and a range of other courses, which are not recognised by FASEA, get a 2/3 discount, but if you are a career changer with no previous experience or education that is relevant to financial planning, you get exactly the same discount....seems entirely fair. I'm a bit surprised this hasn't been picked up by our associations and pushed really hard because it's the clearest argument you can make for FASEA giving no credit for experience or ongoing CPD.

What a load of crap! FASEA is constantly making stuff up in an attempt to justify their incompetence. Not to mention a new entrant does not need a 24 unit degree, but can in fact do the same as existing advisers and go straight into a Grad Diploma through Kaplan from an ADFP.
FASEA is a farce

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