Practice certificates for planners urged
Financial planners should be required at law to hold a Practicing Certificate from a recognised professional association, according to the Financial Planning Association (FPA).
The FPA has used its submission responding to the final report of the Financial System Inquiry to push for the adoption of Practicing Certificates, citing experience in the United Kingdom.
"The FPA's view is that financial planners ought to hold a Practicing Certificate from a recognised professional association. The certification earned by a professional society provides evidence of acquired and continued learning, demonstrating an impartial third-party endorsement of an individual's professional knowledge and experience," the submission said.
It said this was consistent with practice followed by the Financial Conduct Authority (FCA) in the UK which requires financial planners and financial advisers to make an annual declaration that they are meeting standards and as evidence, hold a Statement of Professional Standing (SPS) from an accredited body.
"A requirement of a recognised professional body should be to issue Practicing Certificates to members who meet the new education standards and adhere to its professional and ethical obligations, including ongoing CPD," the submission said.
"Meeting these requirements and receiving a Practicing Certificate from a recognised professional body permits the individual to use the title financial planner or financial adviser.
"Individuals who do not hold a current Practicing Certificate should not be allowed to use these titles," it said.
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