FPA breaks silence on FASEA guidance

The guidance update, issued just over a fortnight ago on Tuesday, 20 March, clarified that all advisers will be required to undergo at least one unit of additional study, while also providing more information on bridging courses.

The guidance update did not include specific references to the FPA-run CFP program or other professional designations, and the FPA did not issue any subsequent response.

However, in a statement today, FPA chair Neil Kendall said the organisation “strongly supports” the raising of education standards but that the current proposal does not give adequate consideration to some forms of prior learning.

“We believe FASEA’s latest proposal does not give sufficient recognition to financial advisers who have completed a degree and undertaken additional studies in financial planning,” he said.

“Failure to recognise study completed by existing financial planners is likely to reduce the availability of financial planners and drive up costs for consumers.”

Mr Kendall added that the FASEA changes were “part of a comprehensive package of changes” and all components needed to be assessed simultaneously.

The FPA is also seeking feedback from its members regarding the draft code of ethics also put forward by FASEA last month, the statement said.

“The active participation of our members in the consultation period is important so that they can be heard. We would expect all members have now had the opportunity to review the latest FASEA announcement, and we strongly encourage them to take the time to complete the questionnaire,” Mr Kendall said.

Prior to the release of the guidance update, Mr Kendall spoke to ifa about the expected value of the CFP designation within FASEA's education standards and other topics.