The Financial Adviser Standards and Ethics Authority (FASEA) has released its revised standards framework for financial advisers, as well as two legislative instruments for work and training, or the professional year, and the provisional relevant provider expression.
Released last Friday evening, FASEA has made changes to the standards blueprint following stakeholder consultation, receiving 800 submissions during the process.
FASEA will add a postgraduate career changer pathway requiring an approved graduate diploma.
New entrants will be able to seek recognition of prior learning (RPL) from the education provider as per their credit and RPL guidelines.
FASEA will further define RPL for existing advisers and provide guidance on credits for previous course work undertaken.
The Advanced Diploma of Financial Planning will be eligible for two course credits.
Advisers will be able to seek RPL for the Corporations Act and behavioural finance client and consumer behaviour bridging courses.
There will be no RPL available for the newly-created code of ethics bridging course.
The standards framework also included details on the adviser exam, continuing professional development, foreign qualifications and provisional relevant provider expression.
FASEA chief executive Stephen Glenfield said incorporating stakeholder feedback was important in finalising the standards.
More details on the standards blueprint can be found here.
Under the professional year standard, FASEA has proposed a provisional relevant provider will be required to undertake a professional year comprising 1600 hours, of which 100 hours is to be structured training.
The legislative instrument for the provisional relevant provider term proposes the final expressions to be used are provisional financial adviser or provisional financial planner, which may be used interchangeably.
“We welcome stakeholder feedback as we move to the final stage of development for the provisional relevant provider expression standard and it will be reviewed prior to release of the final standard,” Glenfield said.
Feedback and submissions on the two legislative instruments are due by 30 November.
Deakin University associate professor and certified financial planner Adrian Raftery said there have been some good concessions from the voluntary round of consultations, most notably a 100-hour reduction in the hours required for the professional year.
“But they are still inadequate and will cause a mass exodus of good advisers in the next few years, which will have a flow[-on] effect to support staff who will lose their jobs,” Raftery said in a LinkedIn post.
“One thing is clear, all seven legislative instruments will not be endorsed by both houses of Parliament by the last sitting day for this year, 6 December.”
Legislative instruments are being released progressively for each of the standards, which will be available for consultation for varying periods up to four weeks.
FASEA will then review feedback received and finalise the standards.