The Financial Adviser Standards and Ethics Authority (FASEA) today released its policy on foreign qualifications for financial advisers, outlining how new and existing advisers can qualify under the new education standards.
The policy, published for consultation, proposes taking a two-step approach. The first is an assessment by a Department of Education and Training (DET)-approved body, including Chartered Accountants Australia and New Zealand and CPA Australia.
This will be followed by an assessment by FASEA on the equivalence of the foreign qualifications to a degree or qualification approved under FASEA’s education pathways policy.
Once FASEA receives a certified copy of the individual’s qualification and a copy of the DET assessment from the DET-approved body, it will determine the requirements for the new entrant or existing adviser.
New entrants who have a DET-approved foreign qualification will be required to complete a FASEA-approved graduate diploma. The new entrant will be eligible for recognition of prior learning if they undertake the graduate diploma.
If an individual’s foreign qualification is not endorsed by a DET-approved body, they will need to complete a FASEA-approved bachelor degree or graduate diploma.
Existing advisers with a DET-approved foreign qualification will need to submit a request to FASEA for an assessment of whether the foreign qualification is considered relevant.
If FASEA deems the qualification relevant, the existing adviser will need to undertake the requirements according to the related-degree pathway. If it determines the qualification is not relevant, the adviser will need to fulfil the non-related-degree pathway requirement.
If the existing adviser’s foreign qualifications are not approved by the DET, they will need to complete a FASEA-approved degree undertaking requirements as per the no-degree pathway.
“We are pleased to release the foreign qualifications policy as it provides guidance for financial advisers holding foreign qualifications and defines the role of FASEA in approving foreign qualifications,” FASEA chief executive Stephen Glenfield said.
FASEA-approved foreign qualifications will be added to FASEA’s foreign qualification precedent database and will be available on its website.
The standards body formed the policy based on 12 submissions it received, as well as various stakeholder forums for this standard in July and August.
It is inviting submissions by 14 December for the consultation paper.