With FASEA education standards coming into effect on 1st Jan 2019, now is the time to consider your business growth plans and how the new requirements may impact them.
Currently the minimum education standards for Financial Planners is an RG146 compliant Diploma of Financial Planning or equivalent, although licensees can set their own higher minimum standards for AR’s if desired.
Speculation is rife, but there is some research1 that suggests more than 14,000 advisers, or more than 50%2 of current advisers will leave the industry, due to changes in minimum education requirements.
There will be different requirements for new and existing advisers. Broadly speaking, new advisers will have to hold a degree that has the words ‘financial planning’ in the title. For existing advisers, it’s a little more complex and varies depending on whether they have a degree, and if that degree is FASEA approved. Whatever steps existing advisers need to take to meet the new standards must be completed by 2024.
All advisers, new and existing, will also have to:
- Pass an exam by 1 Jan 2021
- Undertake CPD from 1 Jan 2019
- Be subject to a Code of Ethics from 1 Jan 2020
We asked Jamie Mazoudier, Recruitment Specialist for Jigsaw Support Services how these new standards might affect self-licensed advice businesses. “In what is already a very candidate-short market, the combination of advisers leaving the industry, lack of new entrants and increase in minimum education standards will make it much harder to hire and retain advisers post 1 Jan 2019. If your adviser does not satisfy the ‘existing adviser’ requirement they will fall under the much stricter ‘new adviser’ requirements. i.e. an adviser that was eligible to be appointed in 2018 may be ineligible from 2019 until further study is completed.”
Steps to take now
As an AFSL owner, you are responsible for ensuring all new AR hires under your licence meet the current standards, so ensure you keep up to date with the latest releases from FASEA. You will also need to have a clear understanding of any further study they will need to meet the incoming standards.
It’s an ideal time to do a stocktake of your existing Authorised Representatives qualifications too, and identify what study, if any, they will need to do after January 1st 2019.
Having a formalised view of how your business plans may be impacted by new education changes means you can stay one step ahead and overcome any additional hurdles, so you can still achieve your future business growth plans.
Jigsaw Practices can access specialised education advice from our team via Portal or by contacting your Regional Manager.
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Jigsaw Support Services are provided by Jigsaw Support Services Limited ABN 21 005 799 977 (Jigsaw). Jigsaw is part of the AMP group of companies and can be contacted on 1800 812 987.