AFA hits back at ‘inaccurate’ education claims
The Association of Financial Advisers (AFA) has sought to correct a daily newspaper article which claims advisers can obtain a Fellow Chartered Financial Practitioner (FChFP) designation without completing an ethics unit.
The article in question, published yesterday, said "the difference between a CFP (certified financial planner) and FChFP is massive, with the latter enabling planners without degrees to do four subjects of a non-technical nature and meet the "new" requirements set by the institutions. Not one of these four subjects requires an ethics component".
The AFA's Brad Fox labelled the claim incorrect, with one of the four units focused around ethics training.
"This is quite simply wrong — in fact, the FChFP does require extensive technical knowledge assessment and as to ethics, subject four, which represents one quarter of the designation, is focused on ethics and professional conduct and the entire course is set at the Masters level," he said.
"It is very disappointing to see inaccurate reporting around an issue as important as financial adviser education. This kind of reporting runs the risk of further undermining consumer confidence to seek the financial advice that they need."
The industry association has also defended the designation's non-degree status. Fox said he sees it as a pathway to higher educational standards.
"While we see a degree entry standard for a career as a financial adviser as being appropriate in the foreseeable future, it is essential that we transition sensibly towards that outcome."
Recommended for you
Three of Australia’s largest financial advice groups have shared their thoughts with Money Management on whether they would include crypto on their approved product lists.
Shadow treasurer Angus Taylor has vowed to introduce a bill to legislate a raft of financial services reforms if the Coalition is elected.
Money Management examines the share price of financial advice licensees over one year to 31 March, with M&A actions in the final quarter having a positive effect for two licensees.
A $3.5 million settlement for victims of Melissa Caddick has been approved by the Federal Court following an initial agreement last December.
