The Financial Planning Standards Board Ltd (FPSB) has congratulated the Financial Planning Association of Australia (FPA) on its role in the introduction of what is calls “landmark legislation” to cement financial planning as a recognised profession in Australia.
Promoted for several years by FPA Australia as necessary to benefit consumers and raise professional standards, Australia’s Parliament passed the Corporations Amendment (Professional Standards of Financial Advisers) Bill 2016, which enshrines the term financial planner/adviser in law and restricts use of the term to those who are properly licensed.
As such, any person claiming to be a financial planner in Australia without having the appropriate qualifications to do so will be breaking the law.
The legislation package significantly raises the professional standards and education level required of financial planners in Australia, upgrading those standards from a short course to include; a degree qualification; completion of a “professional year”; successful completion of a registration exam; completion of ongoing continuing professional development; and adherence to a code of ethics for financial planners.
Noel Maye, pictured left, CEO of FPSB, the owner of the international certified financial planner certification program outside the United States, said: “This is a tremendous outcome for the financial planning profession in Australia, and yet another step forward in establishing financial planning as a recognized global profession.
“FPSB congratulates FPA Australia on its years of hard work and determination to secure this fantastic recognition.”
The legislation is due to take effect on 1 July and will involve the establishment of an independent standards setting body, which will to determine the new education standards to be met by those seeking to practice financial planning.
About the FPA
The Financial Planning Association of Australia represents the Australian financial advisory industry, and claims a membership of more than 12,000 members and affiliates.