The regulator’s decision to delay work on implementing a national exam for financial advisers has drawn a mixed response from industry bodies.
In an announcement yesterday the Australian Securities and Investments Commission (ASIC) blamed a heavy workload due to Future of Financial Advice (FOFA) reform implementation for postponing work on the exam.
Financial Planning Association (FPA) chief executive Mark Rantall told InvestorDaily the delay was not a major issue.
“[The FPA] welcomes the postponement of the ASIC examination. With the advice industry drowning currently in a sea of regulation, dealing not only with the impact of the Future of Financial Advice reforms but also the obligations of advisers under the [Tax Agent Services Act],” Mr Rantall said.
“While we understand that the regulator has an obligation to monitor competencies and standards, we feel self-regulation of the industry is a better way to proceed with educational standards.”
Mr Rantall said the accreditation process for becoming a Certified Financial Planner, the ongoing CPD process for FPA and CFP members and particularly the requirement from July that new FPA members have a university degree are all sufficient educational checks and balances that go beyond the RG146 qualifications required by the regulator.
However, the national technical director of the SMSF Professionals’ Association of Australia, Graeme Colley, expressed disappointment over the decision.
“We accept that ASIC is under a lot of pressure in terms of workload, but we think it is very disappointing that they have deferred the adviser’s exam,” Mr Colley told InvestorDaily.
“We want to see much higher standards of education which the examination will help bring about. Education is the key to good advice.”
In a statement, ASIC said it viewed the exam as “a very important initiative to ensure consistent national standards for advisers”.
“ASIC will continue to explore options to implement this proposal at the appropriate time once the FOFA reforms have been bedded down,” the regulator stated.
ASIC did not elaborate on how long it expected work on the exam to be delayed, however.
The commission added that it will continue to consult on enhancements to the training standards for financial product advisers over the coming months.
“ASIC’s proposed enhancements to the training standards for advisers underline the importance of strengthening the framework for adviser competency and thereby improving the overall quality of financial advice,” the regulator said.
