Tougher monitoring for training providers
Financial planning training organisations will have to get on a register and receive approval from the independent industry-established educational standard setting body for financial advisers if they wish to amend, change or vary educational courses in any way, the Financial Planning Association said.
Chief executive, Dante de Gori, said the Australian Securities and Investments Commission (ASIC) or anyone else did not hitherto have the power to prevent training organisations from altering the curriculum.
He added that the independent body would set the curriculum, decide on the future framework of RG146, and establish courses that would meet the criteria of that curriculum. It would also look at who the course providers would be, as well as who the auditors for those providers would be.
"Those of you and future planners who are looking to do degrees or courses that map back to the requirements can look at the register and be comfortable and confident to know that those courses will recognised and there won't be questions asked," de Gori said.
"Secondly, if you're an employer, you will then be able to verify courses that potential employees are putting forward to you knowing that they are approved by the independent body."
de Gori said he had talked to a member who had applied for an Australian financial services licence (AFSL) by submitting their qualifications: they had a Masters in Financial Planning, a Certified Financial Planner qualification, a degree in economics and had been practising as an authorised representative for 12 years.
"[But] ASIC asked them if they were RG146 compliant. The reason is ASIC do not, from an education perspective, hold a register of training courses that tells them that those courses map that to RG146," he said.
"You think it's ludicrous right? This person has done so much training and qualifications, yet ASIC just want to know are you RG146 compliant?"
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