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Proposed Guidance on Education Pathways for All Advisers

This consultation process has now been completed

20/03/2018 - 29/06/2018
Proposed Guidance - Please note this guidance replaces that given by FASEA in December around qualification pathways

CONSULTATION CLOSED

FASEA is seeking feedback from all stakeholders (including the advice sector, consumers, educators and regulators) concerning this guidance document, which sets out proposed education and qualifications pathways, as well as degree equivalence for existing advisers.

  • • The Standards Authority invites you to provide written submissions and/or comments via a dedicated consultations address (consultation@fasea.gov.au).
  • • The Standards Authority intends hosting a series of events, potentially including webcasts, roadshows and presentations at industry and consumer forums.

Existing Adviser Pathways

The proposed guidance on education pathways for existing advisers has been released as a consultation which is open until 29 June 2018.

The Standards Authority recognises that the legislation requires all relevant providers to consider whether they have the right qualifications to ensure compliance or whether they need to undertake further study.

This requirement for education is in accordance with section 921B(2) of the Corporations Amendment (Professional Standards of Financial Advisers) Act 2017, which identifies the standards for a relevant provider as:

The person has completed a bachelor or higher degree, or equivalent qualification, approved by the standards body under section 921U;

s 1546B (1) of the Act states that by 1 January 2024, existing advisers need to have either:

  • (a) met the education and training standard in subsection 921B(2);
  • (b) completed one or more courses determined by the standards body to give the provider qualifications equivalent to that standard.

As such, the Standards Authority will not be seeking submissions on whether education should be undertaken or whether a bachelor or higher degree, or equivalent qualification, is the correct level of qualification.
The Standards Authority acknowledges that there are many Advisers from a wide variety of professional backgrounds who may already hold qualifications. This proposed guidance is intended to provide a clear pathway of education for every Adviser.
The infographic on the next page may assist with your considerations.
The consultation will seek feedback on the relevance and application of the proposed guidance and how the Adviser community might be supported in adopting the requirements.
We are interested to receive input on the proposed pathways from educators, the community and community representatives, as well as the Adviser community.

Do I have to do a new qualification?

I am... The study pathway I need to follow… Rules and topics
An Existing Adviser
– I do not have a degree (AQF7) or above qualification
Graduate Diploma
AQF 8
OR
Other Approved Qualifications (Degree or Masters - AQF7 and above)
made up of 8 courses,
including courses in:
• Corporations Act (emphasis on Chapter 7 - Financial services and markets)
• The FASEA Code of Ethics
• Behavioural Finance: Client and consumer behaviour, engagement and decision making
• Full content to be confirmed by end 2018
• RPL may be available for advisers who have completed educational programs and/or professional designations
An Existing Adviser
– I have a degree (AQF 7 or above) but it is not in a RELATED field of study
Graduate Diploma
AQF8
made up of 8 courses,
including courses in:
• Corporations Act (emphasis on Chapter 7 - Financial services and markets)
• The FASEA Code of Ethics
• Behavioural Finance: Client and consumer behaviour, engagement and decision making
• RPL may be available for advisers who have completed educational programs and/or professional designations.
• FASEA would expect greater RPL credits to be available for Advisers with formal qualifications
An Existing Adviser
– I have a degree (AQF 7 or above) and it is in a RELATED field of study
Bridging Course
AQF 8
made up of 3 courses,
including courses in:
• Corporations Act (emphasis on Chapter 7 - Financial services and markets)
• The FASEA Code of Ethics
• Behavioural Finance: Client and consumer behaviour, engagement and decision making
An Existing Adviser
– I have a degree and a post graduate qualification in a RELATED field of study
Bridging Course (single subject)
AQF 8
made up of 1 course, covering:
• The FASEA Code of Ethics
An Existing Adviser with an approved FPEC* qualification Bridging Course (single subject)
AQF 8
made up of 1 course, covering:
• The FASEA Code of Ethics
The requirement to undertake this single unit of study is an addition to the 14 December 2017 proposal, and reflects the importance of education in the FASEA Code of Ethics for all relevant providers.

* currently the only ‘approved qualifications’ are those approved by the Financial Planning Education Council at AQF 7 and AQF 9.

Consultation interests of FASEA

Feedback on the proposed guidance

We encourage you to provide feedback on any aspect of the proposed standard and its practical application.

Feedback on pathways

Different pathways exist for advisers with different qualifications.

Are the proposed education pathways appropriate for each type of Adviser?

  • A)  New Entrant?
  • B)  Existing Adviser with no qualifications at AQF 7 (or above)?
  • C)  Existing Adviser with qualifications in unrelated disciplines?
  • D)  Existing Adviser with qualifications in related disciplines at AQF 7 (or above)?
  • E)  Existing Adviser with qualifications and post graduate qualifications in related disciplines?
  • F)  Existing Adviser with approved FPEC qualification?

Feedback on public outcome

Do you think increased education standards will assist in providing higher quality advice?

Do you think these education pathways meet the expectations of consumers?

  • If so, why?
  • If not, why not?

Information about you

It will assist FASEA to understand the background and breadth of respondents to this consultation.

If possible please indicate your engagement with the sector. For instance, I am a financial adviser, or I am a consumer/client (or licensee, industry association, consumer group etc..) and your name, job title (if relevant) and role in making the submission.

You may also advise if you want your submission (or parts of it) to be treated as confidential.

MAKE YOUR SUBMISSION

Your feedback on this consultation paper will assist FASEA to finalise the development of a Standard for education and relevant guidance.
Submissions must be provided in writing. To ensure your submission is valid, please email it to our dedicated consultations email address (consultation@fasea.gov.au).

Due date for submission: 5pm 29th June 2018