A step forward for the financial planning profession
Last Thursday was a historic moment for the financial planning profession. In a step forward for the financial planning industry, new legislation has been passed to improve the quality of the profession.
From 1 July 2017 financial planners will be subject to higher education standards, ongoing CPD (continuing professional development) and an enforceable code of ethics. In addition, the term ‘financial planner/adviser’ has been enshrined in law so if a person claims to be a financial planner without the appropriate qualifications, they will be breaking the law.
As someone who has worked in the industry for almost twenty years, I thank the government for taking this important step. I have never understood how it has been possible for people to take a two week RG146 course to enable them to practice as a financial planner. I am degree qualified with post graduate qualifications in finance, I completed my Certified Financial Planner studies in 2004 and undertake a minimum of 40 hours CPD each year (https://www.yourfamilycfo.melbourne/#who-we-are).
These changes will lift the minimum bar in the industry and should raise professional standards. However, it is important to remember that the industry already has many excellent, suitably qualified practitioners operating in the best interests of their clients. Remember to look out for advisers who have the CFP designation, operate businesses that are free of conflict and independently owned and charge on a fee for service basis.
Source: FPA Alert 14 February 2017 – Financial Planning Will Never Be The Same Again
