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Financial Planning

FASEA framework is changing

Chris Morcom
Partner/Private Client Adviser
27 Nov 2018

For many financial planners in Australia, the advice landscape is rapidly changing.

The Financial Advice Standards and Ethics Authority (FASEA) has recently released more detail about the framework within which advisers will be operating in the future. The legislative instruments released by FASEA are designed to implement the law in line with the Corporations Amendment (Professional Standards of Financial Advisers) Act 2017.

The professional standards framework covers several components:

  1. Code of Ethics – advisers will need to comply with this standard from 1 January 2020
  2. Education – new entrants will need to hold at a minimum an approved bachelor degree (or higher) by 1 January 2019.  Existing advisers will have until 1 January 2024 to comply with the education standards. The new legislative instruments strike a sensible balance to ensure experienced advisers have education to an appropriate level and considers their experience and previous qualifications.
  3. Exam – all existing advisers must pass the 3.5 hour exam set by FASEA by 1 January 2021.  New entrants to the profession would need to pass the exam before starting their Professional Year.
  4. Work & training (Professional Year) – from 1 January 2019 new entrants would need to complete a supervised Professional Year prior to being registered on the Financial Adviser Register. The Professional Year must occur prior to being permitted to advise clients.
  5. Continuing Professional Development (CPD) – existing advisers will need to complete a minimum of 40 hours of CPD each year from 1 January 2019.  FASEA has also specified specific areas in which CPD must be completed.
  6. Foreign Qualifications – those who hold foreign qualifications can have them assessed by FASEA to determine the relevant pathway for them to meet FASEA’s education standard.

It is great to see some more detail flowing from FASEA and they seem to have struck a balance between the lifting of professional financial planning standards, while at the same time not setting the hurdle so high as to see experienced and already qualified advisers exit the profession.

Since 1998, all Hewison Private Wealth financial advisers have been required to hold a minimum relevant degree qualification and hold the Certified Financial Planner (CFP) designation.  As a result, our advisers are required to comply with the Financial Planning Association of Australia’s (FPA) Code of Ethics and are required to undertake a minimum of 40 hours of CPD annually. 

We are proud of the quality of our advisers and the rigorous standards we expect from them.  The awards our firm and individual advisers receive from financial institutions is testament to their quality and professionalism.

Our clients can be reassured that their adviser is well qualified and experienced to meet their needs.

If you or someone you know would like to benefit from our experienced advice, please make an appointment with one of our financial advisers.

Hewison Private Wealth is a Melbourne based independent financial planning firm. Our financial advisers are highly qualified wealth managers and specialise in self managed super funds (SMSF), financial planning, retirement planning advice and investment portfolio management. If you would like to speak to a financial adviser on how you can secure your financial future please contact us 03 8548 4800, email info@hewison.com.au or visit www.hewison.com.auPlease note: The advice provided above is general information only and individuals should seek specialised advice from a qualified financial advisor. The views in this blog are those of the individual and may not represent the general opinion of the firm. Please contact Hewison Private Wealth for more information.