Super body support standardised adviser exams

Financial planners should be subject to a standardised examination and education process as part of an objective measure of their competence, according to the Association of Superannuation Funds of Australia (ASFA).

In a submission to responding to an Australian Securities and Investments Commission (ASIC) consultation paper on an assessment and development framework for financial advisers, the superannuation industry peak body said it believed a rigorous, uniform exam could provide an objective measure of adviser competence.

However it urged that such an exam be just one component of “a robust system of adviser training, accreditation and supervision, [continuing professional development] and ongoing knowledge review”.

The ASFA submission also said it supported exam results reported as a ‘pass’ or ‘fail’ grade on the basis that fine distinctions between grade thresholds “reveal little about candidates’ innate ability and are not a meaningful comparator of adviser competence”.

It said it also recommended a high pass mark of 80 per cent and an open book exam that provided a more realistic simulation of workplace environment.

The ASFA submission also called for a greater focus on ethics with respect to adviser education.

It recommending broadening the adviser ethics component of the accreditation process, arguing “ethical adviser conduct underpins the consumer protection objective of the financial advice regulatory regime, and will support the introduction of a statutory fiduciary duty under the Future of Financial Advice reforms”.