Education remains top priority in FSR move

Despite the continuing frustration experienced by many planners when coming to terms with the implications of the Financial Services Reform Act (FSRA), education is one issue unambiguously on the agenda.

“The reality is that the requirements for education has been driven through PS 146 and the July 1, 2002, deadline,” Financial Planning Association chief executive Ken Breakspear says.

“So what FSRA does is open up the requirements for training and education for a wider group. Most of our members have really been driven by PS146. However, the duty of care in ensuring proper training falls on the licensed principal dealer to determine,” he says.

Breakspear says the association’s Diploma in Financial Planning (DFP) course numbers has grown substantially over the past few years. In 1998 the FPA had around 11,000 DFP graduates with 13,700 in 1999, 15,200 in 2000 and 17,000 in 2001. The first semester of this year saw 8200 enrol in the DFP program.

Integratec sales and marketing general manager Nina Hope says Integratec’s enrolments has increased to more than 1,000 per month.

“In addition to the diploma, the demand for PS146 tailored education has led Integratec to develop specialised courses in direct equities, managed investments, and self-managed super,” Hope says.

Many dealer groups have been focusing on the PS 146 July 1 deadline, so they are only now considering the ramifications of how they’re going to manage ongoing individual training plans for each of their authorised representatives, Hope says. By the end of calendar 2002, she expects enrolments to exceed several thousand per month.

Also experiencing an increase in member numbers interested in education courses is CPA Australia, with CPA Australia financial planning manager Kathy Bowler claiming the group has experienced a steady rise. However, Bowler believes it is still too early to even make estimates on exact numbers.

However, despite the increases, Breakspear says planners and education providers should not be a one-size-fits-all mentality. He says the level of training or the amount of training reflects the nature of the duties of the individual planning representative.

Bowler agrees, saying what many don’t realise is that there are different education needs.

Apart from the traditional road show, seminars and course run education, self-paced learning is a new force in educaiton.

Bowler says CPA members are keen to keep up-to-date with training requirements, but says this is not surprising with 12,000 saying they need to know more about FSRA.

She says all members will receive the information on FSRA in due course, however the information sessions have only been to Victoria and its regional areas.

Also enthusiastic to give its members access to education services is the FPA, which ran a road show around the nation earlier this year, Breakspear says.

He says the FPA performed around 44 presentations around the association’s chapter groups, focusing on the requirements of the legislation, and offering members a detailed information booklet and Financial Service Reform Implementation Kit.

“We also have a separate website for FSRA implementation to assist our members with understanding responsibilities,” he says.

“We also meet monthly with ASIC and talk through the feedback from our members,” he says.

So has the partial introduction of FSRA meant many of the existing education programs have had to be updated to fit in with the latest round of legislative issues?

“We have specifically designed material to meet the FSRA requirements,” Hope says.

“We have also designed challenge tests for individuals who do not want or need to do further training, however must prove to be competent in the areas that they operate,” she says.

Bowler says the CPA has a number of organised programs continuing throughout the year, including the road show — which they haven’t run since addressing the issue of GST — a national conference and specific financial planning intensive days.

“Each state will run a convention. Normally there will be sessions on FSR. We have 75,000 members within Australia, and each division will run a session,” she says.

“Because of this number, I’d say that we would have a conference or a special day at least every fortnight within Australia for CPAs. And I’d say once a month this would incorporate a financial planning session, on topic of interest,” Bowler adds.