FPA says we're ready for standards
Minimum standards for the training of authorised representatives by licensees and principals released last week are not expected to pose much of a threat to most finan-cial planners.
Minimum standards for the training of authorised representatives by licensees and principals released last week are not expected to pose much of a threat to most finan-cial planners.
Indeed, industry experts say that most dealer groups have already taken steps in preparation for the changes.
The Financial Planning Association’s senior manager for education and certification, Ken Bruce, says over the past 12-18 months, numerous dealer groups have ap-proached the FPA for advice on what they should be doing about training.
The FPA has also redeveloped its DFP 1 and its DFP diploma has been enjoying sig-nificant growth in anticipation of the standards move.
The interim policy statement on training released by the Australian Securities and In-vestments Commission (ASIC) states that licensees and principals will have to dem-onstrate that their authorised representatives are adequately trained by October 1, 2001.
Their representatives will have to meet ASIC’s standards in terms of generic and spe-cialist knowledge, skills and integrity.
And, to ensure they do, they will either be individually assessed, or they will have to complete certain training programs which have been assessed by outside parties like registered training organisations, universities, higher education institutions and indus-try associations.
It is understood that the FPA is likely to apply to become one of these authorised as-sessors, although not for its own course.
The interim policy statement, which was developed after wide industry consultation, is seen as broadening the net of advice givers who fall under ASIC’s control.
“It’s been a long time coming, but I think it’s a good initiative. It provides a little more clarity to the market as to what the regulator is expecting,” says Brady & Asso-ciates’ Paul Brady who chairs the FPA’s education committee.
ASIC national director of regulation Shane Tregillis says ASIC will establish a small training advisory committee to assist in the accreditation process and provide general advice on practical implementation issues.
He adds that those who have to become licensed after CLERP 6’s proposals are en-acted will have two years after the enactment to comply with the standards. ASIC, however, will review the policy after CLERP 6 is enacted and expects further consu-lation before it issues a final statement.
AUTHOR
Jason Spits
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