ASIC misguided on national examination
The Australian Securities and Investments Commission (ASIC) is headed down the wrong path in pursuing a national "series 7" examination for financial planners, including mistaking advice on securities instruments for financial planning, according to former Financial Planning Association (FPA) chairman, Matthew Rowe.
In a column to be published in the next print edition of Money Management, Rowe argues that far from assisting financial planning to become a profession, the type of national exam which has been spruiked by ASIC chairman, Greg Medcraft, would further entrench product sales.
"It really boils down to this question; is financial planning about the selling of products only? If the answer is yes, then it is appropriate for ASIC to seek out product licensing exams," Rowe said.
However he said that if financial planning was about more than merely product sales and was, indeed a profession, it should be left to professional bodies to test of competency of professionals and see to their professional standing.
"It would appear Greg Medcraft's view is financial planning is product focused, my view on the other hand is that financial planning is profession focused," Rowe said. "Our views can co-exist, but a product focused exam is not an appropriate platform [on which] to build a profession."
He said, however, that professional bodies could build their exams to complement and "sit over" the product-based exams to avoid duplication and encourage regulator recognition and exemptions.
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