FASEA CEO declares 10-year rule rumour a lie

Chief executive of the Financial Adviser Standards and Ethics Authority (FASEA), Deen Sanders, told a full house at the SMSF Association Conference that rumours about a ‘10-year rule’ regarding the value or time limit of qualifications were categorically untrue.

Despite much industry discussion and media coverage implying that FASEA was introducing a 10-year rule, Sanders was adamant that no such proposal had ever been the Authority’s policy. He said they had not decided about values or time limits.

Rather, he said the proposal had merely been referenced as a note regarding academic policy for institutions.

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Sanders encouraged advisers to read communications from FASEA themselves, rather than rely on the media or other people to interpret them. He said that there had been a lot of both accurate and inaccurate readings of information provided by the Authority to date.

The 10-year rule rumours could be seen as a key example of such myths and misrepresentations running amok.

Sanders sought to bust many other myths that FASEA felt had been circulating about the proposed adviser education reforms.

He said that the idea that FASEA had settled on the policies it was going to enact was not accurate. He emphasised that the proposals are open for consultation, a process which would formally begin in the next week.

The reason the guidance had been released early was not because it had been decided, but because the Authority wanted to encourage educators to plan and build programs. It also wanted to prompt those that most needed new qualifications to start planning for the next six years.

“We are working hard and carefully to progress as many of the Standards as we can to help the marketplace prepare and get the right communication to the industry,” Sanders said.

He also clarified that further detail would be coming about degree equivalence options.

Throughout the talk, Sanders reiterated to an at times frustrated audience that the ultimate goal of FASEA’s reforms was to ensure that all Australians could have confidence in financial advice, and that the Authority and industry needed to work together to achieve that goal.

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why not do the consultation before releasing anything. That is communication 101 and gross failure in management style. He released early 'thoughts' to encourage educators....says it all...wasn't thinking about advisers in the slightest sense. Says he wanted to prompt those that needed education to start planning....without final policy detail no one can plan. It's out of control and they are in damage control, trying to rewrite history. Just apologise and start again.

Oh my god!! Is this guy for real? I have the document in front of me and I am looking at Page 5, B.1. The proposed ten year rule is right there in black and white for all to see. If this article correctly describes his comments, the board needs to step in immediately and sack him. This has now descended into a complete and utter farce.

correct, it's in writing. They don't even understand their own documents.

So Dean Sanders can flat out LIE to financial advisers. Here is a link to the document Ben was referring to

What can an adviser who has been advising clients for 10+ years possible gain from going back to uni. Maybe some things about derivatives and negative gearing and other things we don't ever deal with, but we all know everything we need to know to service our clients already.

He is obviously not qualified to represent a professional body, especially the FP industry where we cannot lie. Sadly he mad the mistake of documenting his policy then lying about it. Hasn't heard of file notes obviously. Maybe he needs to go back to Uni to do an ethics course (but then he couldn't get a job at a bank). He would make a great politician with these traits though.

that's embarrassing, not just for him, FASEA, the Govt, but for our profession - sad for the public.

'Established higher education protocols will be applied and therefore course older than 10 years
will not be recognised for credit and a maximum credit of 50% will be applied.'
THis is from the FPEC document in Dec 2017, as I understand it this was accepted by FASEA. So how is the 10 year rule a rumour?

The FASEA 10 year rule was not “merely referenced as a note regarding academic policy for institutions”. On page 5 of the proposal paper, under paragraph B, their guidance to “Advisers” says that if their FP degree is not on the FPEC list and it is older than 10 years, then more study must be done. This wording was under a heading “Proposed existing Financial Advisers”. This wording created the proposed FASEA 10 year rule.

If this wording was not reflective of FASEA thinking, then FASEA should have the courage to admit the proposal paper was poorly drafted. The attempted recontextualisation to save face is borderline dishonest.

It was a flat out lie. You would think that with all those years of study you would be better at your job Dean. This goes to show that study does not necessarily make you any better at your job and it certainly shows that study does not make you better at acting in the best interests of anyone other than yourself.

Mr Sauders needs to immediately step down from the role. The advice community simply cannot have any confidence or trust that he will do the right thing. Suggest he move into politics, a career where honesty and integrity is only an optional requirement.

Fake news...its all fake news...nothing to see here....

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