The Financial Planning Association (FPA) has lifted the bar on membership, requiring that from July 2013 membership only be open to new members with an approved degree.
Frankly, this has been coming for a while now, and certainly represents the correct approach in moving the industry away from the shonky salesman image to something more professionally aligned with accountants or lawyers.
Unfortunately, it is not a mandatory requirement that those providing financial advice be part of the FPA, but hopefully the value add for client’s will convince more advisers to attain the necessary qualifications and join up.
Interesting times ahead.
In related news, ASIC is also considering whether the current level of skills competency, know as RG146, is adequate for new planners coming into the industry.
Association of Financial Planners (AFA) chief Richard Klipin agreed the current entry standards for the industry were “too low”.
“Collectively, the industry needs to, with the regulator, set the framework and lift standards and therefore lift the professionalism and experience within the industry.”