While the now-defunct Financial Adviser Standards and Ethics Authority (FASEA) was aware of mental health issues in the financial advice industry, it did not monitor the number of affected advisers or have the “power” to exempt an adviser from sitting the exam.
In an answer to the Senate Economics Legislation Committee questions on notice, FASEA said it was aware of mental health issues in the industry and the research into adviser wellbeing.
However, when asked what actions it had taken when it was aware an adviser was experiencing mental health issues and might be at risk of self-harm, FASEA said its role was to administer the exam.
“FASEA’s role under the act is to administer the exam, as required by legislation. FASEA has no power to exempt an adviser from sitting the exam, nor to provide counselling services,” it said.
“Where FASEA becomes aware of an adviser experiencing mental health issues FASEA refers them to their licensee or industry association to provide appropriate support.
“FASEA is not funded nor staffed to provide counselling to advisers. Where FASEA becomes aware of an adviser experiencing mental health issues FASEA refers them to their licensee or industry association to provide appropriate support.”
When asked if it tracked the number of advisers who might be deemed to be experiencing mental health complications, the entity said “no”.
Comments
No funding to help advisers in need. As much funding as required to organise the exam. What is this country coming to? Any citizen who is put in harms way by a compulsory Government mandate should be offered assistance if they are in some way injured by that action.
this country is in chaos. virtually no sector functions properly.
financial services, aged care, energy retailing, health care, education, the university sector.
what a mess
true, the whole country is one big farce and catastrophy
ha ha, dixon advisory is calling in administrators. another financial advisory firm bites the dust. the whole industry is collapsing on itself.
ha ha
Why is that funny? What type of person are yiu to get a laugh out of this?
bunch of overcharging, conflicted bad actors getting what they deserve, being put out of business. that is karmic, don't you think. good riddance.
Let's not forget, the FASEA board wanted to boot advisers if they failed the exam more than twice by the end of 2020 and force all advisers back to university if their degree was more than 10 years old. It was a rogue board with zero compassion for their fellow human beings. The only time FASEA should ever be mentioned henceforth, is in mba courses as an prime example of how to completely stuff up consultation, put stake holders offside and ultimately destroy an organisation. The individuals involved should never again be trusted with a position of power in a government appointed role
Spot on.
Gee - you would have thought with an alleged "Ethicist" on the FARSEA Board that a more proactive approach to this issue would have been taken by FARSEA. Isn't ethics all about "what is the right/moral thing to do?" when faced with an ethical dilemma. In particular the alleged "Ethicist" on the FARSEA Board should be particularly ashamed of himself.
You mean the 'ethicist' who's own ethics bridging course was set to be approved before all others, only to be pulled at the last moment due to a rival academic calling him out? What a farce. You couldn't make this shit up.
The ex-FASEA directors should hang their collective heads in shame. They knew they were damaging the mental health of thousands of hardworking financial planners. They just didn't care. They were more interested in their own selfish virtue signaling and were conned by the portrayal of financial advisers in the media because they were too lazy to get out of their ivory towers and do some research of their own. With AFCA finally coming clean about the extraordinary low rate of complaints against financial planners, the stupidity of the ex-FASEA board is laid bare.
Let's not forget that all advisers have to do an ethics bridging course, even if they have done prior ethics training and have passed the FASEA exam which is primarily focused on the FASEA Code. The "ethicist" from the FASEA Board is likely to benefit significantly from this.
Then there is the ongoing FASEA CPD requirement which requires more annual training in ethics than it does in areas like tax or investments or superannuation, even though it is a subject area that does not change nearly as much. The "ethicist" seems to have been set up with a great ongoing revenue stream that will continue long after the shameful FASEA Board of which he was part.
Ohh let me see..... that would be referred to as a "conflict of interest". Funny how the organisation for whom the "Ethicist" was the CEO would have gained $$$ from this whole farce. Gee, I wonder if the "Ethicist" would have potentially received a bonus based on the volume of "sales" made? Oh, that's called "conflicted remuneration".
Imagine if a Corporation said something like this in todays woke world - but all OK for this lot it seems.
"FASEA’s (insert Big Fat Corporation on worried about profits) role under the act is to administer the exam, as required by legislation. FASEA (insert Big Fat Corporation on worried about profits) has no power to exempt an adviser from sitting the exam, nor to provide counselling services,”
WOW FASEA is not setup or approved to provide support for mental health issues. Why do FASEA believe an AFSL is qualified to provide support? WHAT A STUPID RESPONSE!
I wonder if anyone has an exact number who regrettably took their own lives as a consequence to the governments knee jerk reaction to the Hayne Royal Commission in Banking and Financial Services.
I wonder if the Government and their hand maiden (ASIC) took stock of the exodus of advisers, some 12,000 plus over the past 2 years that would leave the profession as a result of their draconian future education requirements on existing financial advisers whilst ignoring in some cases the good professional advice provided by many over a very long period.
Or simply, they didn't care so long as perception was more important than the reality.
For those of you who have recently acquired tertiary education , good on you but that doesn't make you a good financial adviser nor does it qualify you to have better soft skills that a CFP with 40 years experience that has developed client engagement and referral capacity from centres of influence.
Time will tell if you ever do, because there are plenty of financial planners with an education that will never have those soft skills because its just not part of their personality.
ASIC & Treasury consider financial planners to be like chewing gum on the soles of their shoes.
at least it's better then the new kids in charge ASIC. Probably the next case they'll hi five each other and say "we've killed another adviser Yes...fist pump"
they best get on the job of killing us quick, because the number of financial planners is being decimated.
The mental health issues for Advisers are caused not just by FASEA. Licensee look backs, ASIC indifference & lack of understanding, Politicians more concerned with appearances than the truth and public apathy. I'm glad I got out when I did, even though I never dreamed I would ever want to. I wouldn't have survived breathing if I had stayed in.
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