FPA adds ethics to fast-tracked CFP
Postgraduate degree qualified people will no longer be able to gain an exemption from four out of the five units that must be obtained to receive the Certified Financial Planner (CFP) certification.
From July 1 this year, ‘challenge pathway’ students will also have to complete unit one of the CFP program titled ‘Ethics and Professional Compliance’.
In late 2003, the Financial Planning Association (FPA) opened up the challenge pathway to give people with recognised postgraduate degrees the opportunity to fast-track through the CFP process.
Up until the July 1 deadline, those taking the challenge pathway will only have to undertake the fifth and final CFP unit, which is the certification assessment.
FPA general manager business services Chris McMillan said the extra ethics subject has been added to the challenge pathway as part of the association’s recent assault on improving professional standards.
“[CFP1] is the one that in particular is the key to maintaining professionalism in the industry,” McMillan said.
“What we’re saying is, yes you can go and learn the technical stuff — you can go and do a masters in financial planning — but it may not necessarily talk about the ethics of professional practice in the running of a financial planning practice.”
As part of the revised challenge pathway, people will be entitled to exemptions from CFP units two to four only if they have completed or have commenced an FPA- approved postgraduate qualification in financial planning before December 31, 2005.
As was earlier reported, as of January 1, 2007, those without any postgraduate qualifications won’t be able to apply for CFP qualification, unless they have an undergraduate degree.
McMillan says the FPA hasn’t been witnessing a rush in CFP enrolments, as people try to get their CFP before the new undergraduate requirement kicks in.
“We haven’t counted on that happening, we really haven’t because people will choose whether or not they want a professional qualification or an academic one based on what stage they are at in their careers and a lot of other personal factors.”
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