Newly-minted Assistant Treasurer Stuart Roberts spoke to the advice industry for the first time at the AFA National Advisers Conference, explaining how he’s come to an agreement with FASEA about how prior learning will be recognised under the new professional standards regime.
Roberts initially clarified that the legislation retains seven “non-negotiables,” the first being that new advisers will require a degree. All advisers will also be required to complete an exam by 2021, professional development will be compulsory, there will be a professional year, an ethics component will be included, a recognition process for foreign degrees will be completed and all advisers will need to meet FASEA requirements by 2024.
Roberts described his discussions with FASEA as being “open and very positive, respecting the fact that they are a statutorily independent agency.”
“I have found the organisation to be both professional and eager to engage and I am particularly impressed with the Chair, Catherine Walter AM,” he added.
As part of these discussions, Roberts flagged three key clarifications in the FASEA regime, the first of which targets existing advisers specifically.
Recognition of prior learning for existing advisers
Roberts said existing advisers with no degree “will not be required to undertake a bachelor degree, but will be required to undertake eight subjects, equivalent to a graduate diploma.”
Should these advisers hold an existing advanced diploma of financial planning, they’ll receive two subjects credit. On top of this, if they have completed the education coursework to attain either the FPA’s Certified Financial Planner or the AFA’s Fellow Chartered Financial Practitioner designation, they’ll receive a further two credits.
In other words, half of the eight subjects required in the absence of a degree will be completed if advisers meet these criteria.
For advisers with a related degree …
Those advisers with “a related degree” will need to complete three bridging courses on chapter 7 of the Corporations Act, the new Code of Ethics and behavioural finance.
… and those with a postgraduate degree
Finally, Roberts said existing advisers with a “postgraduate degree related to financial advice, or a bachelor or postgraduate degree approved by FASEA, would have to complete one bridging course on the new Code of Ethics.”
The Assistant Treasurer capped off his comments by saying “it’s now up to all of us, the Government and the financial advice sector to work hard to continue to build trust and confidence in this critical sector of the Australian economy.”
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