Planners’ qualifications under scrutiny

Financial planners who gained planning qualifications prior to 1994 will be asked to prove their current industry knowledge or be forced to undertake further qualifications, according to the recent Financial Services Reform Bill.

Financial Planning Association (FPA) chief executive Ken Breakspear says while the FSRB gives planners two years to comply with the new regime, the educational measures seem extreme.

"We have an issue with the Australian Securities and Investment Commission (ASIC). They believe if you have an older qualification, say pre-1994, then planners need to demonstrate that they have current knowledge," Breakspear says.

"Our belief is that a planner who has a diploma ought to be able to substantially show the currency of knowledge. That in combination with their previous qualifications."

Breakspear says the idea put forward by ASIC and in turn written in the FSRB will mean unnecessary costs for small businesses if they have to do a two-day course.

"We are working together with ASIC to be part of an education process. There is going to be a series: 'ASIC speaks on the FSRB'. We are expecting to see more than 13 policy statements from the regulator in the next few months," he says.

Breakspear says other parts of the licensing requirements are simple. He says everyone must have a new licence, with current licensees needing to reapply for a new licence.

"There are still quite a number of changes, while most of the things the industry wanted have been listened to," Breakspear says.