AFA, FPA and FASEA welcome passing of FASEA extension

18 June 2020

The Association of Financial Advisers (AFA), Financial Planners Association of Australia (FPA) and the Financial Adviser Standards and Ethics Authority (FASEA) have all welcomed the extension of the FASEA exam and education deadlines, which passed the Senate on Wednesday.

The bill had passed both houses and changed the Corporations Act to provide a 12-month extension of the exam deadline to 1 January, 2022, and a 24-month extension to the education standard to 1 January, 2026.

It was passed in the Senate without amendment, which Rex Patrick of the Centre Alliance Party had asked for.

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Philip Kewin, AFA chief executive, said the passing of the bill allowed advisers to continue to focus on the immediate needs of their clients, who still faced the economic impact of the COVID-19 crisis.

“Financial advisers will now be able to operate with certainty in planning for successfully passing the exam before the end of 2021 and the completion of their education requirements by the end of 2025,” Kewin said.

“We thank the minister, Senator Jane Hume, for putting up the bill to enable the extensions to the deadlines, and the ALP and the minor parties for their support of the bill.”

Dante De Gori, FPA chief executive, said they were pleased that financial planners now had more flexibility to complete their study.

“This bill is a lifeline for financial planners across Australia and will grant them the necessary extension to complete new education requirements at a time when they are out in our communities providing advice to Australians during COVID-19,” De Gori said.

“[The] announcement will provide some relief to planners who are struggling to support not only existing clients but also providing the broader community with advice as many Australians find themselves in a financial situation they have never experienced before.”

Stephen Glenfield, FASEA chief executive, said the organisation welcomed the result and noted the strong performance of advisers who had already passed the exam and commenced studies.

“It is encouraging that there are many advisers who have commenced their education requirements with nearly 3,000 advisers enrolled in bridging courses and over 6,500 individual bachelor or higher degree subjects being undertaken by existing advisers,” Glenfield said.

The bill was previously held up as the Australian Labor Party sought to extend the ban on conflicted remuneration as part of the omnibus bill the extension was included in.

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Good news which should assist with orderly transition from the 'old' to 'new' world. I still expect that many experienced (older) planners will leave the industry on 31 Dec 2015 (and some on 31 Dec 2001) rather than having to put themselves through the stress and expense of further education to prove that they know what they know.

Agree I am aged 62 and after being a planner since late 89 and will bow out in the latter half of 2021. It is not worth the time and effort doing exams etc. Let a younger generation fight the battles assuming there is a profession left. I have a practice ( sold 5 years ago but still look after my clients) in a rural area and while my old practice will continue to growth and servive it would not even had a chance to open if the new rules/system were place back in 89. Most of my clients have been with me between 15-30 years. When I explain I will need to hand in my licence they are quite frankly dumbfounded that some someone with 30 plus years experience can be shown the door. I have a few old solicitors and accountants as clients and they never had degrees but where grandfathered when their changes happened. Anyway thats life. This profession should be solely focussed on client outcomes, sadly the last 2 or 3 years as a planner it has become compliance focused with clients, planners and staff paying the consquences for decisions made which we have no control over or to a large degree no imput.I have enjoyed coming to work from day one until about 2 years ago where the amount a paperwork has just become overbearing and non productive. Financial planning is about long term relationships but unfortunately the powers that be including dealer groups have forgotten this. I hope after 2021 that there will be affordable planning available to rural people who are in some ways the back bone of this country.

I couldn't agree more. All this extension has done is move the cliff out two more years. I expect by 2026 the number of advisers left in this profession will be half what they were 2 years ago.
Those currently over 55, and with more than 30 years experience have been given another 2 years grace, hooray, but that doesn't change anything. I as one have no interest in undertaking an enormous amount of study now just to extend my professional life for a few more years. If my 34 years of experience in advising are not good enough, then so be it. Its not the advisers that will lose, it will be the clients.
The government's response to the Hayne Royal Commission, will be remembered not for what it did to improve the industry, it will be remembered for what it did to destroy it.
And as for the future of the industry, the recruiters will tell you that for every university graduate interested in joining the profession as an adviser, there are 10 who want to be in compliance rather than advice. And given the costs and responsibilities involved, who is going to train the next generation of advisers? FASEA?
I think Assistant Minister Jane Hume has a lot more work to do.

Are you 1005296 and 'ceased' on the ASIC FAR 20/6/2017?

Interesting feedback re new graduates joining compliance. In the current climate that is where the money and the opportunities are. But it is mostly funded from big bank PR budgets, and will rapidly dry up once the banks have cleared their decks and shored up their brands. Where will financial planning graduates whose only work experience is in compliance find work then? The one in 10 of their cohort with real financial planning experience will have a distinct employability advantage in the medium to long term.

One also wonders if these new graduates have been brainwashed by the media and their lecturers that "all financial planners are evil and the industry needs people like you to crack down on them to make the world a better place". Unfortunately the crucial fact they are yet to learn is that bias and distortion is far more prevalent in media and academia than in real life.

The Stockbrokers and Financial Advisers Association. FINSIA, AIOFP, the SMSF Association, and UFP lobbied the Minister as a group and the FPA did not want to participate. Well done to those bodies that presented a united front to the Minister. Perhaps MM should be printing or seeking out bodies that represent planners and not institutions.

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