FPA to open door to industry
The FinancialPlanning Association (FPA) is proposing to change its membership structure to recognise paraplanners and other financial services industry professionals as associate members.
The membership changes, which are at present only outlined in proposal form, are scheduled to be finalised in the next few months, following endorsement from FPA members.
FPA chief executive officer Ken Breakspear says the proposed changes are not to take away from the certified financial planner (CFP) designation, but to recognise the career path to becoming a financial planner.
Breakspear says the proposed changes have been driven by the Australian Securities and Investments Commission’s (ASIC) Policy Statememt (PS)146.
The policy statement is aimed at licensees and principals, and focuses on the educational and training requirements for their authorised representatives.
Under the conditions set out in PS146, all licensees have until June 2002 to demonstrate that their representatives’ education and training meets ASIC’s requirements.
As part of PS146’s requirements, advisers are required to satisfy a minimum level of training, which Breakspear believes has been set too low but says the FPA has been able to use to some advantage.
“What we have done is start to recognise that training tier, so when advisers enter the industry, we are giving them a starting point and entry recognition,” he says.
“We are going to retain the associate category, and open it up to other professionals working in the financial advisory industry”.
The associate category will be open to paraplanners, technical advisers, compliance professionals and risk protection specialists engaged in the financial services process, who may not necessarily have CFP status.
As well as changing the membership structure for new members, the FPA is also planning to change the membership structure of retired members.
Breakspear says under the proposal, retired members will be given a lower subscription fee, and open a fellowship concept to give recognition to longstanding FPA members.
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