Education and Professional Standards
Improved outcomes reflected in the second draft of the Professional Standards Framework
The AFA strongly represented the concerns we received from Members to the Government. The concerns received, mostly from senior advisers and principals running busy small advice businesses on the first draft of the legislation on Professional Standards, was reflected in the AFA’s January submission and in ongoing discussions with Minister O’Dwyer and Treasury.
The Government have listened to the AFA and our profession, and the result is improved outcomes. That is, more reasonable timeframes and transition pathways. Importantly for existing advisers, rather than a requirement to have a degree, this will now be degree-equivalency. The second draft of Treasury documents are now available for targeted consultation with members.
Click here to view the key reference documents outlining the current version of the Government's Professional Standards Framework.
While many of the practical details that many Members will be interested to know are not housed in the draft legislation or regulations, they will be developed as part of the work of the Standard Setting Body to be established in the future. We are keeping a close interest in who might be considered for the Board of the Standard Setting Body, as it will influence the development of the:
- approved transition pathways and recognition of prior courses/experience
- Code of Ethics
- interaction with the TPB’s education requirements
- future CPD requirements
- exam content
- approved courses and any core and/or specialist subjects
If you already have a relevant degree or are on the pathway from Diploma to Advanced Diploma of Financial Planning, or have the Fellow Chartered Financial Practitioner (FChFP) designation, you are positioning yourself well for the future.
Click here to view the AFA's June submission where we submitted to Treasury that:
- It is important for the Standards Body to have Directors with practical financial advice experience
- Advisers need to have their skills and knowledge appropriately assessed
- Provisional advisers need to be supported to learn the craft
- Professional association membership should be mandated
- Regulators should provide enforcement support to efficiently investigate alleged Code breaches
- Code compliance monitoring schemes require transparent communication from other stakeholders
- The Standards Body needs to be adequately informed when reviewing and setting standards
- Financial advisers’ registered place of business, not their principal place of business, should be disclosed on the register
The AFA will formally re-engage with Treasury once they are out of caretaker mode following next week's Federal election and we will update you again as developments come to hand.