22
Agenda
FASEA
Royal Commission
Challenger Update
Code of Ethics
FPA Support Tools
INTRODUCTION
The financial planning profession make an enormous contribution to the Australian economy.
We add over $4 billion a year and are part of the larger financial services sector that contributes
over $140 billion.
Clients that have a financial planner are;
• 10% more likely to be accepted for life cover
• 22% more likely to have a successful claim
• 83% have more appropriate life cover
• 98% have more appropriate TPD cover
• Advised clients pay on average 35% less tax
• 50% feel more prepared for retirement
• Save 50% more
• 60% more likely to have peace of mind and feel more confident with their money and are;
• 80% more prepared if something goes wrong
Released Legislative Instruments and Standards
Provisional Relevant Provider
Expression
Professional Year
CPDDegrees,
Qualifications and Courses
Foreign Qualifications
ExaminationCode of Ethics
Program & Provider
Accreditation
FASEA PROPOSAL FPA RECOMMENDATIONIMPACT ON
FPA MEMBERS
91% Graduate Diploma
28% 1 subject
22% 3 subjects
50% Graduate Diploma
50% 1 subject
15% 3 to 7 subjects
30% 4 to 8 subjects
5% 8 or more subjects
• Approved degrees
• Graduate Diploma
• 6 pathways
• No recognition of (most) financial planning education
• DFP1-8 / ADFP and CFP®
recognised
• 4-7 units of relevant study
• Up to 3 units of credit for DFP1-8 and CFP®
• Financial Planning subjects
• CFP 1-5 formally recognised
• No formal consultation, FPA advocated to Minister
• Too complicated, simplify
• Doesn’t recognise financial planning study
• Accumulate study
• No recognition of financial planning majors
• 8 subjects or nothing
• Only 2 credits for CFP®
(post 2001)
14 DEC
2017
20 MAR
2018
14 DEC
2018
23 DEC
2018
25 MAR
2019
FASEA EXAM
Curriculum
• Corporations Act Ch7
• TASA
• Privacy Act
• AML/CTF
• Code of Ethics
• Financial Advice Construction
Format
• 70 Questions
• 64 multiple choice
• 6 short answer
• 3.5 hours
• Pass or Fail
• “Case study” question style
• Practice exam and reading material
How
• July 2019 - Dec 2020
• Unlimited re-sits every 3 months
• 8x major cities, 1 regional
• Regional remote digital delivery (2020 only)
• Open book legislation
• Computer based
ROYAL COMMISSION
Framework
2022 Review
Remuneration
Annual Payments
GF Commissions
LIF
Super
Discipline
Disciplinary System
Reporting
Remediation
Information Sharing
Legislation
Fundamental Norms
Exceptions & Qualifications
Other
Independence
Vertical Integration
Binding Nominations
FASEA CODE OF ETHICS
Professional Commitment
High level of relevant knowledge Cooperate with investigations Uphold and promote ethical standards
Quality Process
Client must give free, prior & informed consent for all benefits
Maintain client records Offer services in good faith & competently
Client Care
Act only with client’s free, prior & informed consent All advice in clients best interestTake into account broad effects and broader, long-term interests and likely circumstances
Ethical Behaviour
Comply with Law Act with integrity and in clients best interests Decline advice in event of a conflict of interest
Values
Trustworthiness Competence Honesty Fairness Diligence
CODE MONITORING AUSTRALIA
Application
Final application due August
Approval from ASIC October 2019
Register
By 15 November 2019
Update FAR with CMS
Code Compliance
1 January 2020Monitoring
Reactive Monitoring from 1 Jan 2020
Proactive Monitoring from July 2020
Royal Commission Recommendation 2.10
Single Disciplinary System
CODE MONITORING AUSTRALIA PTY LTD
FPA GUIDANCE
FINTECH TOOLS & RESOURCES
Mapping Fintech to the financial planning
process: FPA Report
• Identifies and matches fintech solutions to the financial
planning advice process.
Financial planning process mapping tool
Partnering with YTML, an online tool which helps you:
• Quantify what are the real costs involved in provide
advice
• Determine how long it really takes you to provide advice
end-to-end
• Calculate how to price your services accordingly,
based on this knowledge.
Fintech buyers guide and checklist
• To help you assess what fintech your business needs,
and guide you on finding the right provider.
Future2 Slide
2019 CFP® CONSUMER AD CAMPAIGN
INTRODUCING THE PRONUP
Consumer eBook
landing page
Sponsored ad
Helping connect Australians
to FPA members based on goals
and needs, not just location.
Creating connections in an easy, quick
way with the consumer in control.
AVAILABLE FOR CFP® PROFESSIONALS
TO DOWNLOAD THE APP
MATCH MY PLANNER
Current business address
Professional photo of yourself
Description of your services
1. 2. 3.
CONSUMER FILLS IN THE ONLINE
FORM & CREATES A PROFILE
MAKE SURE YOUR
FIND A PLANNER PROFILE IS UP TO DATE
4.
FPA MEMBER RECEIVES AN
APP NOTIFICATION
FPA MEMBER RESPONDS TO THE
ENQUIRY
CONSUMER RECEIVES AN EMAIL &
CAN RESPOND TO FPA MEMBER
Free confidential coaching and support for FPA members.
1300 360 364 OR Speak to a coach on LiveChat
Holistic health & wellbeing program
• Sessions with qualified counsellors, psychologists and specialist
coaches
• Resources via app
Open to CFP® professionals, AFP and Associate members.
In partnership with
