ASIC outlines details of financial advice education regime

Australian Securities and Investments Commission (ASIC) chairman Greg Medcraft has outlined the regulator's proposed measures to improve the "competency and quality of advice".

Speaking at the Finsia national conference yesterday, Medcraft confirmed ASIC's intention to introduce a national entrance exam for all new financial advisers from 2012. However, he acknowledged the start date could be too soon and was open to a three-year transition period.

When it came to continuing professional development (CPD), all financial advisers will be required to take the online Knowledge Update Review every three years, Medcraft said. The eLearning module will not require preparation, and will earn financial advisers generous CPD points, he added.

A fellow financial planner with at least five years experience will monitor new financial advisers for one year, Medcraft said.

ASIC also plans to create a central database containing all of the results recorded by the new regime.

Medcraft acknowledged there were some reservations in the industry about the Knowledge Update Review, but he said "this is more a reflection of the lack of understanding of the Review's objectives".

He added ASIC intended to keep the costs of the new education regime "to a minimum".

"We are working to a target figure of $300 for the examination sitting fee and between $250 and $300 for the completion of the Knowledge Update Review," Medcraft said.