The Financial Adviser Standards and Ethics Authority (FASEA) has defended its approach to the treatment of historical continuing professional development (CPD) learning, claiming much of it is below current standards.
Appearing before the Senate Estimates Economics Legislation Committee, FASEA chief executive Stephen Glenfield presented an opening statement covering the authority’s work, including its approach to assessing CPD.
Glenfield said FASEA continued to recognise prior CPD learning of existing advisers where it met the education requirements of Section 921B of the Corporations Act and was aware of industry concerns it had not approved other forms of CPD, adding many historical offerings failed to measure up to the standards.
“In assessing whether to recognise CPD, FASEA has been guided by the Corporations Act requirement that to lift education standards, advisers must complete a bachelor’s degree or higher or equivalent qualification,” he said in the statement.
“To meet the education requirement of the Corporations Act, CPD must result in an equivalent qualification to a bachelor or higher degree.
“The majority of CPD undertaken by advisers (including technical seminars, conferences, online reading, attending professional updates, et cetera) does not meet this minimum Corporations Act requirement of resulting in the issuing of a bachelor level or above equivalent qualification and does not meet the base education requirements set by the law.”
He noted this was a difficult outcome to accept for experienced advisers who had maintained their CPD requirements, but added the explanatory memorandum to the Corporations Act amendment also recognised past CPD was inconsistent in quality and not at university standard.
FASEA has recognised prior learning leading to a qualification from eight professional associations, including the Financial Planning Association, Association of Financial Advisers and SMSF Association, as well as advanced diplomas in financial planning or advice from 24 registered training organisations, he told the committee.
