The FPA is planning sweeping changes to its membership to raise standards in financial planning.
From July 1 2008, the peak body plans to separate practitioners into two categories: Certified Financial Planner (CFP) and Associate Financial Planner (AFP).
CFP is the internationally-recognised gold standard for planners.
“CFP practitioner members will continue to be the pinnacle professional category of membership,” the FPA said in consultation paper sent to members this month.
“All rights, privileges and obligations of that category will remain the same.”
The AFP sub-category will combine all non-CFP practitioner members who meet minimum entry requirements.
They will need PS146, the minimum ASIC requirement to provide advice, as well as one year’s experience and a Diploma of Financial Services.
The new category would include the current category of Affiliate and Senior Associate.
“[It] may include paraplanners, technical support people and anyone who is aspiring to further their career in financial planning, as long as basic entry requirements are met,” the FPA said.
FPA chief executive Jo-Anne Bloch said ASIC’s PS146 educational requirement was too low for those in the business of giving financial advice.
She said the AFP category would provide a very clear pathway to the CFP designation through specific educational and related professional services.
The association is considering making AFP into a certified designation.
Another proposal is to segment principal membership into small (one to 20) authorised representatives and large (20-plus) for voting rights and to enable equal representation on the board.
Currently a small principal member is a licensee with one to 50 representatives and a large principal member has 50 or more.
The FPA wants to cut the size of its board from 12 to eight members and reduce its 12 membership categories to three.
The FPA represents around 12,000 individuals and businesses.
Members will vote on the changes at the annual general meeting in November.
