FASEA consults on foreign qualifications 

24 July 2018

FASEA has released Consultation paper 7: Foreign qualifications.

The paper is seeking views on the process for approving qualifications for both new entrants and existing financial advisers. FASEA is proposing that prior to approving of their foreign qualification, the individual is required to have their foreign qualification assessed by the Australian Education International – National Office of Overseas Skills Recognition (AEI-NOOSR).

  • If the individual is a new entrant, following the NOOSR assessment the individual will be required to complete additional education as defined by the Standards Body.
  • If the individual is an existing adviser, following the NOOSR assessment, the existing adviser will apply for assessment by the Standards Body.

FASEA consults on continuing professional development (CPD) 

24 July 2018

FASEA has released Consultation paper 6: Continuing professional development.

FASEA are seeking views on its proposed CPD framework, including:

  • the proposed requirement for 50 hours of CPD per year, 70 per cent of which should be approved by the AFS licensee
  • the types of CPD activities proposed including formal relevant education, non-formal education and others such as conferences.

FASEA consults on professional work and training requirement (professional year) 

23 July 2018

FASEA has released Consultation paper 5: Professional work and training requirement.

The paper proposed the:

  • responsibilities for approving work and training in the professional year for new financial advisers
  • the work and training requirements for the professional year of experience
  • competencies required to meet the professional year requirement, including evidence collection
  • exit criteria.

FASEA consults on provisional relevant provider term 

23 July 2018

FASEA has released Consultation paper 4: Provisional relevant provider term.

FASEA are seeking views on the term “Provisional Financial Adviser” to be the required term for Provisional Relevant Providers completing their work and training requirements.

FASEA consults on the financial adviser examination 

11 July 2018

FASEA has released Consultation paper 3: Financial adviser examination.

The paper proposes a three to four hour closed book examination, consisting of 75 questions where 70 questions will be selected response multiple-choice and the remaining five would be written response.

It is proposed the examination assess:

  • the Corporations Act 2001 (Cth), emphasis on Chapter 7 – Financial services and markets
  • the FASEA Code of Ethics
  • behavioural finance – client and consumer behaviour, engagement and decision making
  • financial advice construction – suitability of advice aligned to different consumer groups
  • applied ethical and professional reasoning and communication.

FASEA consults on Education Pathways for financial advisers

29 June 2018

FASEA has consulted on the Proposed Guidance on Qualification Pathways for all Advisers.

It is proposed that financial advisers with a bachelor’s degree in a related field (accounting, financial planning or advice, business, commerce, law or economics) would need to complete three bridging units to meet the new standards.

FASEA has also proposed that financial advisers who hold a bachelor degree and a postgraduate qualification in a related field would only need to complete a one-unit bridging course covering the FASEA Code of Ethics.
CPA Australia strongly recommended that FASEA amend the proposed pathways for existing advisers to ensure a framework that is equitable, sustainable, delivers value for all stakeholders and importantly, reflects the expectations of the community.

ASIC consultation on the approval and oversight of compliance schemes for financial advisers

28 June 2018

From 1 January 2020, financial advisers must comply with a code of ethics and be covered by a scheme under which their compliance with the code of ethics will be monitored and enforced (compliance scheme). Compliance schemes must be approved by ASIC.

ASIC Consultation Paper 300 Approval and oversight of compliance schemes for financial advisers (PDF) sought feedback on its proposed process and criteria for determining whether to grant approval to a compliance scheme and our proposed oversight of compliance schemes on an ongoing basis.

FASEA consults on Code of Ethics

1 June 2018

The Draft Code of Ethics is a principles-based code that establishes core values to guide ethical behaviour, client care, quality of process and professional commitment amongst Financial Advisers.

While CPA Australia supports a principles-based approach, we are concerned the Code of Ethics as drafted with undefined terms and broad standards will not provide this important framework. In the absence of a clearer framework or supporting guidance it may also prove ineffective in driving consistency of expected behaviour and conduct.