The Financial Planning Association (FPA) has filed for formal recognition of its Certified Financial Planner (CFP) designation from the Financial Adviser Standards and Ethics Authority (FASEA) to ensure its CFP members receive appropriate accreditation.
FPA chief executive, Dante De Gori has told Money Management the FPA has formally filed its application with FASEA seeking recognition for the CFP designation, and he expects that other industry organisations will have undertaken similar moves.
The FPA’s move comes as De Gori confirmed that the FASEA developments had impacted the number of enrolments received for the CFP designation, with planners opting to take a conservative approach to await the final shape of the FASEA education requirements.
However, he said there had been a steady inflow of students who had completed degrees sanctioned under the Financial Planning Education Council (FPEC) arrangements which were subsequently adopted by the FASEA.
De Gori pointed to the level of continuing uncertainty which had been generated by the roll-out of the FASEA agenda, stating that many members were signalling they still felt ill-equipped to deal with the new environment.
“It is not that they do not want to adapt the new regime, it is that they do not know with certainty what is required at this stage,” he said.
De Gori said that, for this reason, the FPA was looking to upgrade its resources to assist members in understanding their options and the pathways they would need to follow.
“But like everyone else we’re still looking for definitive information we can impart to advisers,” he said.
Comments
So the guy who was the accreditation manager at the FPA will now accredit the CFP for FASEA. If FASEA was a country it'd be Somalia.
With all the current issues affecting their members the only thing the FPA seems to be working on is protecting the useless CFP program. Don't worry about representing members with degrees and relevant experience who have to do unnecessary additional studies, just protect your income stream. Talk about self interest. Anyone who is wasting their money and time on the CFP program must have rocks in their head.
Lol spot on.
Shut these 'professional' associations down, seriously. They achieve nothing. Just another commercial enterprise focused on their bottom line only.
Once FASEA is 100% online, is there any purpose for these 'professional' associations anymore? Other than taking my money for membership and signing up to their code of ethics.
Obviously FPA's main concern is protecting their main source of revenue via the CFP program. Can you honestly see FASEA approving grandfathered CFP designation which were handed out so willy-nilly?
Im either buying a foreign degree or changing my title from Adviser to Money Coach. Everyone other than advisers can give financial advice without any oversight or regulation. Why would i want to waste my time studying just so that i have to provide a SOA each time i recommend strategy. The RC will ban fees from super anyway and we will have to charge clients directly so you dont even need to be a mamber of a professional body or registered with the superannuation provider anymore.
End result of FASEA. Clients lose the protection provided by seeing a financial adviser and unregulated advice becomes the norm. When things go wrong we can just say we gave the client general information. Too bad client you should have gone to see the 100 or so financial advisers left and paid them the $20,000 upfront as they only deal with HNW clients now.
Its also great that real estate agents can recommend purchasing a multi million dollar off the plan apartment as an investment option without any training or compliance and charge whatever commission they like without a SOA, BID or ongoing CPD training.
I've been a CFP for 20 years. I have a Degree, and Post Graduate Degree, the 8 unit DFP, and a long list of specialized qualifications that are not offered by a University given they cater for 18 year olds leaving school.
I've joined because I wanted to belong to a profession. But all I've seen is the FPA acting only to feather their own nest and salaries. In that 20 year period I have never ever had any client or obtained any clients based on myself being a member of the FPA. Therefore, given the lack of leadership in this matter, the FPA conduct, and their association with product providers, their self interest, their behaviour exposed at the RC- I'm over paying $1,000 a year and joining the countless other associations and paying $300 -$500. At the end of this fin year I'm out. The only advisers left in the FPA are those forced to belong because of their employer (the CBA) is dodging a bullet with ASIC.
Or you could be Laura Higgins from ASIC. She has an education degree and allows herself to be called a financial guru and provides news articles on the ABC titled "Financial Advice on how to set Goals". I wonder if FASEA will consider her degree relevant and allow her to continue to provide financial advice to Australians???
I can see the writing on the wall - it seems grandfathered commission will go and if fees from product are also banned, I see little reason to remain licensed. Imagine, just for one minute, providing "having money conversations" with a client, discussing strategy. Charge a fee (and a much smaller one with no SOA and compliance, licence fees, ASIC fee, TPB fees, PI, etc) direct to the client for the service of
"- managing money day-to-day"
"- planning and saving for the future"
" - making informed financial decisions."
Before anyone thinks this is crazy and illegal, check out Laura Higgins on https://www.moneysmart.gov.au/life-events-and-you/women/women-talk-money... .
I reckon I could do most strategies in those three point.
Thanks RobinBris I was not aware of Lara Higgins but she made me think - I am more educated than she is and see can do it so perhaps I should follow in the footsteps of ASIC - not much they could say about it. No liability and no compliance and help clients - nice.
Why would FPA have applied for the CFP "Designation" to be recognised by FASEA? Shouldn't they be applying for the CFP "Certification"?? The CFP Designation includes grandfathered CFPs who have completed minimal formal education. CFP Certification requires completion of a 5 unit postgrad level course conducted by Deakin.
The FPA's ongoing pandering to grandfathered CFPs has been one of the main elements eroding its credibility and devaluing the CFP brand. If the FPA is trying to include grandfathered CFPs in its push for FASEA exemptions they are doomed to fail. The majority of CFPs who have completed CFP Certification have a right to be outraged by this. And probably a good case for a class action to recover all their fees.
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