AFA hits back at ‘inaccurate’ education claims
The Association of Financial Advisers (AFA) has sought to correct a daily newspaper article which claims advisers can obtain a Fellow Chartered Financial Practitioner (FChFP) designation without completing an ethics unit.
The article in question, published yesterday, said "the difference between a CFP (certified financial planner) and FChFP is massive, with the latter enabling planners without degrees to do four subjects of a non-technical nature and meet the "new" requirements set by the institutions. Not one of these four subjects requires an ethics component".
The AFA's Brad Fox labelled the claim incorrect, with one of the four units focused around ethics training.
"This is quite simply wrong — in fact, the FChFP does require extensive technical knowledge assessment and as to ethics, subject four, which represents one quarter of the designation, is focused on ethics and professional conduct and the entire course is set at the Masters level," he said.
"It is very disappointing to see inaccurate reporting around an issue as important as financial adviser education. This kind of reporting runs the risk of further undermining consumer confidence to seek the financial advice that they need."
The industry association has also defended the designation's non-degree status. Fox said he sees it as a pathway to higher educational standards.
"While we see a degree entry standard for a career as a financial adviser as being appropriate in the foreseeable future, it is essential that we transition sensibly towards that outcome."
AUTHOR
Staff Writer
Recommended for you
Australia’s largest licensee has seen the biggest number of adviser losses over the past week, while the expected wave of new entrants has boosted overall adviser numbers.
Iress has increased its forecast adjusted EBITDA by $5 million for the 2023/24 financial year in light of the sale of its platform business to Praemium and hinted at a return to dividend payments.
With just 30 per cent of Australians knowing their superannuation balance to the nearest $1,000, Findex has emphasised the role of financial advice in addressing the critical super knowledge gap.
New Insignia Financial CEO Scott Hartley has detailed the impact of the Godfrey Pembroke exit and the progress in resetting its financial advice model on its latest quarterly results.
