Speaking before the Senate Economics Legislation Committee recently, FASEA CEO Stephen Glenfield was confronted about the impacts the new education standards may be having on the financial advice industry.
When asked by Labor Senator Alex Gallacher about the “extreme angst amongst financial planners about their future viability” and mental health issues, Glenfield he was aware of these concerns but that “our role is setting those standards.”
“We aren’t the supervisor,” he added.
Liberal Senator Amanda Stoker then asked whether FASEA acknowledged “the risk of losing an awful lot of experienced financial advisers for whom doing a full eight-subject graduate diploma late in their careers is just too much, too expensive and, quite frankly, too disrespectful to the role they play in the culture of the profession.”
Once again, Glenfield responded that FASEA’s role was “implementing legislation that came from parliament,” but Stoker pushed further, asking whether he recognised the impact was to “push experienced financial advisers out of the profession.”
“I don’t have evidence that that is or isn’t the case,” Glenfield responded.
Glenfield’s comments follow FASEA making further clarifications about the Code of Ethics to which all advisers must adhere from 1 January 2020.
As outlined in February, the Code of Ethics comprises five values: trustworthiness, competence, honesty, fairness and diligence. There are also 12 standards, which are outlined in the legislative instrument available here.
Explaining that the Code has been designed to “encourage and embed higher standards of behaviour and professionalism in the financial advice industry,” FASEA said the “reward” for its implementation will be an “increase in public trust and confidence in this evolving profession.”
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