FPA warns of pause in adviser authorisations

There could be a period of up to 12 months during which new financial planners will not be authorised to give advice as a result of the regime likely to be put in place around the professional year inherent in the proposed Financial Adviser Standards and Ethics Authority (FASEA) regime.

Financial Planning Association chief executive, Dante De Gori told Money Management’s Future of Wealth Management Conference on the Gold Coast that while he expected a significant exodus of planners to be one result of the new FASEA regime, a pause in new planner authorisations was also a likely outcome.

De Gori said the regime would likely see no new planners authorised before 2020 due to a combination of the implementation of the regime around the minimum degree-level entry qualification, the adviser examination and the need to complete a professional year.

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De Gori told the conference that he believed this would give rise to a pause in authorisations which would add to the disruption caused by the likely exits which would occur.

Association of Financial Advisers (AFA) general manager, Policy, Phil Anderson said he believed the imposition of the FASEA regime would lead to an exit on the part of financial planners, with as many as up to 20 per cent choosing to leave the industry.

He said that while, like the FPA, the AFA supported lifting the level of education and professionalism in the financial planning industry it was also important not to make the regime so unreasonable that it forced experienced planners to leave.

De Gori said much work needed to be done to ensure that degrees were appropriately recognised, rather than adopting a too-narrow, prescriptive approach.

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Might need to consider pushing back the whole implementation timeframe to allow for an 'orderly' transition which would benefit not only the general public but also long term experienced planners.

This is more like Disco Inferno than Dante's Inferno.

I think the AFA and FPA are dreaming at 20% exiting I think it will more likely be 50% plus

Why would anyone want to become an adviser these days? 4 yrears of uni to learn how to tick boxes when call centre staff can recommend the same products and get paid the same with 2 days training under the General Advice model.

Once they remove commissions entirely and ban payments from product providers you would be better off being being un registered and without the formal qualifications and hold no AFSL. Then you can give advice and charge by the hour but wouldnt be constrained by all the compliance nonsence we have to put up with. The client would actually be left better off in most cases as they wont have to pay for all the rubbish box ticking we are forced to go through.

It always amazes me that Union offiials and pay roll managers can recommend superannuation policies and call centre reps and bank tellers can recommend insurances without any training or compliance or education and ASIC thinks its ok.

That's because they are on the same team.

I've been a CFP for many years and will be exiting FPA altogether very shortly. My 3 prior qual's and degrees mean naught supposedly, so why would i hold onto the CFP (Captured Financial Payment to FPA) now that it has proven itself useless as well? Money down the drain that will now go towards the next degree costs...

100.0% correct on all counts and like you I am in the same boat a are probably many others.
We get charged a $200 advertising levy as part of our FPA /CFP membership and I have never received 1 peso of benefit from that levy.
How do I know, well, not one existing or new client has ever asked me what my CFP designation means.
Not one of the 5 accountants that refer clients have ever recognised that I hold a CFP.
What a joke this whole industry/profession this has become.
This all started with the Financial Services Reform Bill in 2000, and as we have seen by legislative changes over the past 18 years to the present Royal Commission, it has shown that no matter how hard or often you legislate anything, when dealing with humans, nothing will be completely solved, until "God" gets around to making the perfect human being,

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