New standard to raise the bar for planners

TheInternational Organisation for Standardisation (ISO) is a step closer to introducing an international standard for financial planning to Australia that would require improvements in the present minimum standard.

At a meeting in Sydney of the ISO Technical Committee on Personal Financial Planning last week, delegates moved towards a standard that would be at least the depth of a university degree.

To be owned by Standards Australia, the Australian arm of the ISO, the standard would be introduced in 18 countries including Australia, providing an international standard above the range of commercially driven marks.

Standards Australia Personal Financial Planning Committee chairman David Williams says he does not expect the standard to conflict with theFinancial Planning Association’s Certified Financial Practitioner (CFP) designation.

He says the CFP represents a particular interest group and there are other financial planners in Australia that want to legitimise the business they are conducting.

Williams says the accreditation process will be set in place outside Standards Australia, and there was no reason why a present accreditation provider in Australia could not apply for permission to administer it.

The meeting of the ISO committee involved more than 40 delegates from 14 countries, with discussions on the development of international process, ethics, expertise, competency and standards of service.

Williams says there was no disagreement among Australian organisations on the theme of the standards, though there was some detail and refinement of definitions that needed to be worked through.

He adds that the standards are not aimed to make financial planning an elite profession but to be a reasonable benchmark in which consumers can be confident and competent planners will respect.

The standard will be available for public comment by the end of 2003, and introduced by 2005.