AFA unveils new designations

TheAssociation of Financial Advisers(AFA) officially launched its new professional designations yesterday at the AFA National Conference in Queensland.

The basic designation - AFAA (Accredited Financial Adviser Australia) - will be available to all practicing advisers who are PS 146 compliant as agents or authorized representatives.

The higher level designation - CFAA (Certified Financial Adviser Australia) - will be available to advisers who have also achieved Fellow of the Australian Lifewriters Association (FALA) or Fellow of the Association of Financial Advisers (FAFA) status or the Advanced Diploma of Financial Services (Financial Planning).

Speaking at the conference yesterday on the Gold Coast AFA national professional standards committee chair Darren Lelliott says the launch marks the end of a long period of negotiation and development of the new designations.

“We really needed to find a designation that was going to be truly representative of financial advisers, and that’s why these terms are reasonably generic, so they don’t just single out life advisers or investment advisers,” Lelliott says.

However in order to recognize the specialized skills of advisers, the CFAA is awarded in one of five disciplines - insurance, managed investments, superannuation, investment property and mortgages - according to a set of competency standards in each of these areas, developed according to Australian Securities and Investments Commission and the National Finance Industry Training Advisory Board (NFITAB) guidelines.

“Not many of our people claim to be experts in every area of financial advice, although they may be experts in risk advice, and we wanted that to be demonstrated with both the generic level and the specialization,” Lelliott says.

AFA members who have achieved the FALA or who have completed the previous Life Underwriters Association training course will be automatically awarded the CFAA with a risk insurance specialty, while advisers who currently hold the CFP will also qualify for the CFAA, probably with an investment advice specialty.

The designations must be renewed annually through the completion of AFA approved continuing education (CE) points, with advisers also able to add additional specialties through the completion of the required units as part of their ongoing CE program.

Completion of CE points is to be verified by the Australian College of Financial Services, which was involved in developing the competency standards and designations with its principal Peter Carblis consulting to the Committee.

However despite the College’s close involvement with the project, all training providers can apply to the AFA to have courses accredited for the designations, with courses assessed by the Professional Standards Committee.

“We have a very strong joint venture relationship with the Australian College, we don’t endorse monopolies, so we’re quite willing to accept training from other suppliers,” Lelliott says.

The new designations take effect immediately, with the AFA beginning to accept applications on October 1, and the first designation expected to be awarded in mid-October.