It was quite an insightful chat.
The unnamed education provider gave me a bit of an off-the-record rundown (hence not publishing their name) on where they thought the industry was heading.
In short, the provider said the industry needed to pull its finger out and revamp its stance on education.
The interesting part about our chat was that he said if any industry body came out and called for a degree-only qualification (outside the organisations that already offer degree courses), it would sound the death knell for many providers, including the one he worked for.
A few months after my conversation with this person, the FPA began quietly ringing the bell.
In this week’s magazine, our cover story (beginning on page 18) focuses on the proposed changes the peak advisory association has proposed and what those within the industry believe will come from the changes.
As well as looking at how the financial services industry will tackle changes to education measures, the article also delves into the obstacle universities still struggle with – the fact financial planning programs often get caught in between the faculties of accounting, economics and finance.
Despite almost half of Australia’s universities offering degree-level or higher qualifications into the FPA’s certified financial planner program, the association believes there is still inconsistency.
As announced in November last year, from July 2013 FPA membership will only be open to new members with an approved degree or higher qualifications.
As part of the changes, new FPA members will need to undertake a supervised ‘professional year’ program to ensure they earn the right to represent FPA professionals in the community.
In addition to new membership requirements, the FPA board has approved the creation of a new Financial Planning Education Council.
The council, made up of academics, industry participants and other stakeholders, will be responsible for approving higher education programs, FPA membership and the certified financial planner program.
“This strategy is about educating professionals and so will focus well above RG 146 or other regulatory initiatives that establish the minimum legal requirements for advisers,” FPA head of professionalism Deen Sanders said.
It is merely a guess as to what mantra industry participants have been murmuring to themselves ever since 2008, though surely we wouldn’t be too far off the mark if we suggested it was ‘change is coming, move with it or get out’.
This appears to again be the thread the industry will experience this year and in the years to follow.
