AFA supports raising of education bar

The Association of Financial Advisers (AFA) has endorsed the drive to raise the financial planning education bar, however, chief executive Richard Klipin said theoretical knowledge must include practical experience.

Responding to the speech by the Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen, who stated at the Financial Planning Association's (FPA's) national conference last week that financial advice should be of a high quality, Klipin said while education is an important ingredient, so too is experience and learning from peers.

Klipin said the AFA's GenXt program achieves the aim of translating theory into practice through mentorship.

He said while new GenXt members are typically degree qualified, new entrants needed a pathway to translate their theoretical learning with practical solutions.

"This practical peer-to-peer learning is one of the keys to success of the program."

Klipin said the AFA's standpoint is "successful businesses that deliver quality outcomes for clients are those that successfully blend theoretical knowledge with practical experience via business models which support their clients' objectives".

In response to the FPA's recently released education consultation paper, Klipin said it raises many key points that the AFA will consider.