Financial advice becoming ‘recognised’ as a profession: FASEA

The financial advice industry is finally becoming recognised as a profession as the standards and education requirements are helping it to be promoted in the same way as law or accounting, according to Financial Adviser Standards and Ethics Authority (FASEA).

Speaking on the Association of Financial Advisers (AFA) Genxt podcast, FASEA standards director, Amelia Constantinidis said the industry previously had quite low requirements in terms of people coming on.

“We’re seeing more – and it’s been really encouraging for us to see – new entrants and enquires we’re getting in terms of those wanting to become a financial adviser,” Constantinidis said.

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“We’re starting to see financial advice become recognised as a profession with higher education providers.

“Because of the approved degrees it is being promoted as another profession, like accounting, like law, which is fantastic and encouraging.”

Currently, 550 provisional advisers had enrolled in their professional year (PY) and 260 were expected to start this quarter.

Constantinidis said the hallmark of a profession was to have higher education and she was excited by the new entrants in the industry.

“We’ve seen great benefits for some practices that have really embraced [new entrants] and have brought on one or two,” Constantinidis said.

“And how they’ve shaped their business to have a better client outcome; that’s been encouraging and great to hear from my perspective in terms of how the PY standard is being implemented.”

An adviser doing their PY said their “mind was blown” when they found out, previously, that more training was required to be a hairdresser than a financial adviser.

“When we look at financial advice, one of the key things – and when I say this to people they say ‘oh, you’re right’ – most people used to become a specialist before becoming a generalist,” Constantinidis said.

“That’s not saying specialists aren’t valuable to their clients but in every other profession, you would become a generalist before you become a specialist.

“In terms of what the PY specifically brings to the industry, I’d cover that more broadly to say what do all the standards that we’ve just implemented bring to this industry and it is absolutely about professionalism.”

Looking at other professions, Constantinidis said they all had education requirements and ongoing continuous professional development.

“They do have a professional year, some call it an internship; they do have an entry exam, a code of ethics and some sort of enforcement,” Constantinidis said.

“Those are the key pillars of professionalism. All of those together give greater consumer trust and greater standing in the community as a professional.

“The Government’s original intention was to recognise financial advice as a profession by introducing all these standards.”

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The "hairdresser" line was never meaningful in practice. Financial advisers always had to do far more than the legislatively prescribed minimum training in order to get a job, and many were better qualified than accountants, let alone hairdressers. It was a media hatchet job.

How appalling that a FASEA employee chooses to rehash this in an effort to substantiate her failed employer and own failed career. (Which previously included a long stint at AMP). Thankfully FASEA will be terminated soon and its incompetent employees will be seeking other jobs. What's the bet Constantinidis ends up at ASIC or a union fund, given her penchant for trashing financial advisers?

spot-on, accountants are not very well qualified. there are over 20,000 accountants still practicing who are grandfathered and do not have a degree. even their professional programs are not that good. the CPA is a non-AQF rated internal course and you can complete it with a 50% pass. it doesn't have any assignments just a final exam which is a multi-choice exam. the CA also is only a 5 unit graduate diploma and at AQF 8 and only requires a 50% to pass whereas the CFP requires a 70% just to pass.

the media did a great job mocking and degrading financial planners, but on the whole, we are much more qualified than accountants. most accountants think it is a joke to do CPD, virtually none of them do it. if you asked one of them to produce a CPD record going back 5 years, they wouldn't be able to do it, most of us could do that in less than 5 minutes.

look at this person as an example very skinny qualifications

p.s. a lot of the accountants don't even have a postgraduate qualification, only a measly bachelor's degree that's it. they never study again

p.s.s did you all hear about the 1,100 people cheating on exams at KPMG? no comment from ASIC as it is an internal matter and no discipline from CA ANZ, at least the US Public Company Oversight board fined them $600k

P.SSS. and then earlier this week another accounting firm PWC was involved in racist illegal activity that is against the Racial discrimination act see

I have no problem with higher education, an exam and a reasonable code of ethics similar to other professions. But what FASEA rolled out was an utter disaster, beyond anything required by other professions and completely out of step with the parliamentary inquiries which led to its formation. They are despised by advisers for their lack of consultation, arrogance and belligerence. FASEA is so toxic the government sacked the lot of them. But they still have the cheek to taunt us with this self serving rubbish.

Accountants want to make me vomit. They are the most shady and unscrupulous.

Hardly surprising they cheat on an internal open book ethics test.

Bunch of smelly turds.

When are other "professionals" doing their equivalent of Fasea eg accts, lawyers, politicans etc? Oh wait nothing to see there.

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