Education standards must be the 'first order of business' for new minister, FPA says

With the profession “left in limbo” for the duration of the election campaign, the Financial Planning Association of Australia (FPA) expects action on education standards to be the “first order of business” for the incoming financial services minister.

Welcoming the appointment of the new Labor government, led by Prime Minister Anthony Albanese, the FPA issued a statement on Monday expressing its readiness to “effective collaboration” on the pressing issues affecting the financial planning profession.

“Congratulations to Prime Minister Anthony Albanese and his government on their appointment and we look forward to working with the new Minister for Financial Services on matters of vital importance to the financial planning profession,” FPA chief executive Sarah Abood said.

“We are expecting the new government to quickly deliver on its election commitment to provide much needed certainty to the profession on education standards, including providing for a framework to better recognise relevant experience.

“We have already had good engagement with Stephen Jones on this and other issues in the past, and we look forward to working further with the Albanese Labor government,” said Ms Abood.

Ms Abood also stressed the FPA’s willingness to continue to work with all stakeholders on policies and initiatives that contribute to affordable financial advice for all Australians.

The FPA earlier prioritised a number of issues for the 47th Australian Parliament to address, including the Australian Securities and Investments Commission’s (ASIC) industry funding model and education standards, the creation of a Compensation Scheme of Last Resort (CSLR), better regulation of ‘finfluencers’, and tax deductions for the provision of financial advice.

The creation of a CSLR has been cited as “a high priority” by the association, which has also demanded that its design and implementation ensure that consumers are covered for the full range of matters considered by AFCA including managed investment schemes. The FPA is also expecting the government to bear the costs of the establishment and any legacy claims relating to the scheme.

Moreover, the FPA is calling for “sensible measures” to improve the affordability and accessibility of financial advice, such as reducing regulatory complexity and duplication as well as providing Australians the ability to claim a tax deduction for the provision of financial advice, regardless of the stage in the advice process.

Finally, the FPA has called on regulators to take more action on ‘finfluencers’ to ensure the same rules applies to all those offering personal financial advice, no matter what the platform.