As the FASEA regime kicks into gear this year, it’s worth going over some of the clarifications that were made around Christmas and in the new year.
When last we checked up on FASEA, we noted that it likely wouldn’t be too long before we’d see what the definitions for relevant providers’ degrees, qualifications and courses would look like when signed into law.
Furthermore, notices were sent to advice industry associations instructing them how to have the course content for their professional designations approved by FASEA. The standards authority said it was important that all associations with professional designations submit their course content “as soon as practicable” to make sure advisers with a relevant designation are eligible for up to two units credit in their study.
Here’s what we know now:
Clarifying CPD requirements
As discussed before, advisers will need to undertake 40 hours of CPD per year, 70% of which must be approved by their licensee. The minimum hours per CPD category are:
- Technical (five hours)
- Client care and practice (five hours)
- Regulatory compliance and consumer protection (five hours)
- Professionalism and ethics (nine hours)
It’s also worth noting that there’s a maximum of four hours of professional reading that will count towards your total. The remaining 16 hours will be dedicated to qualifying CPD content that’s allocated to areas of “greatest need,” which refers mostly to the particular services you provide, or areas in which you specialise.
If you’re working part-time, you can petition your licensee to have your total minimum CPD hours reduced to 36 per year, as well.
More details about the FASEA exam
FASEA said the exam will consist of “at least” 70 questions, that it will be open book, and that it will cover three key areas. These are regulatory and legal obligations, applied ethical and professional reasoning and financial advice construction.
The exam will be developed and delivered by the Australian Council for Educational Research and will cost $540 per student. After conducting the exam, you will only be notified if you’ve passed or failed. If you fail, you can apply once to the administrator of your exam for an as-yet undefined fee to have your submission reviewed.
The exam will be made available in “metropolitan and regional centres.” If for some reason you’re unable to travel to an exam location, you can apply for alternative arrangements if you live in a remote location or are unable to travel due to special circumstances.
Relevant degrees and course credits
Recognition of prior learning (RPL) credits have also been clarified, with non-relevant degrees being afforded a single course credit against the required eight-course FASEA-approved graduate diploma. If that degree contains between four and seven units relevant to financial planning, advisers will be given a further two credits.
The Advanced Diploma of Financial Planning provides two more credits, as does a FASEA-approved designation such as the Financial Planning Association’s Certified Financial Planner (CFP).
Additionally, FASEA has also released its final definitions of relevant providers and degrees. It’s an extensive list which you can consult here.
We’ll keep you posted with any further updates.
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