CQAP adopting new benchmarks

Paul Williams

AXA has developed revised advice and compliance guidelines for the 54 financial planning practice members within its Certified Quality Advice Practices (CQAP) program.

The revised guidelines will see AXA effectively reduce its own advice and compliance audit processes within the CQAP program due to the high internal level of advice and compliance achieved by its members.

“We’ve reduced some of the ongoing checking we conduct as the licensee because advice and compliance processes by CQAP members are now so rigorous they’re unlikely to make mistakes,” said Paul Williams, national manager for both AXA Financial Planning and Charter Financial Planning.

He said the changes are “a reflection of the dedicated internal compliance resources set up by CQAP members rather than any lessening of entry requirements for new practices applying for the CQAP designation”.

“We’re certainly not going to reduce the eligibility requirements in the CQAP as we want to retain its status as an above-industry benchmark for quality advice.”

A further benefit of the changes to CQAP member practices is provision of an automatic 10 per cent reduction in the cost of their professional indemnity insurance premiums, according to Williams.

“We see this as a way of rewarding the practices within our network that have invested significant time and resources to maintain above industry compliance and advice standards.”

CQAP members also receive a 10 per cent discount on their licensee funds as well as an additional 10 per cent on the capital value of their businesses, among other benefits.

Williams said that a total of 54 practices have now qualified for membership of the 18 month old CQAP program across the AXA planning network, including AXA Financial Planning and Charter Financial Planning.

“A year ago we were sitting at around 35 qualified practices and we are now at 54, and ideally at the end the year we will be at 65, and, in fact, we are on track to meet that,” he said.