Landmark Legislation Assures Australians That Financial Planners Will Need To Be Qualified and Subject to Code of Ethics
DENVER, CO – 7 MARCH 2017 – Today, Financial Planning Standards Board Ltd. (FPSB), owner of the international CERTIFIED FINANCIAL PLANNER certification program outside the United States, congratulates the Financial Planning Association of Australia (FPA) on its role in the introduction of landmark legislation to cement financial planning as a recognized 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.
Commenting on the passing of the legislation, Noel Maye, CEO of FPSB Ltd., 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.”
Dante De Gori, CFP, CEO of the FPA Australia, said “Consumers have long been able to rely on the fact that FPA members and CFP professionals subscribe to a Code of Professional Practice and Code of Ethics, and meet rigorous education and competency standards. Now, the public can be assured that everybody holding themselves out as financial planners in Australia will need to be similarly trained, experienced and subject to an enforceable code of ethics. We are delighted.”
The legislation will be effective from 1 July 2017 and will involve the establishment of an independent standards setting body to determine the new education standards for any practicing or aspiring financial planner.
FPSB benefits the global community by establishing, upholding and promoting worldwide professional standards in financial planning. FPSB demonstrates its commitment to excellence with the marks of professional distinction – CFP, CERTIFIED FINANCIAL PLANNER and CFP Logo mark – which it owns outside the United States. FPSB has a nonprofit member organization in the following 26 territories: Australia, Austria, Brazil, Canada, Chinese Taipei, Colombia, France, Germany, Hong Kong, India, Indonesia, Ireland, Israel, Japan, Malaysia, New Zealand, the Netherlands, the People’s Republic of China, the Republic of Korea, Singapore, South Africa, Switzerland, Thailand, Turkey, the United Kingdom and the United States. At the end of 2016, there were 170,101 CFP professionals worldwide. For more, visit fpsb.org.
About the FPA
The Financial Planning Association of Australia (FPA) represents the interests of the public and Australia’s professional community of financial planners. The Association is unrivaled in its reach of the financial planning market, influence on government and regulators, standards set through a world-class Code of Professional Practice, unique position as the certification body in Australia for the global CFP® designation, and reputation for quality professional development. With a growing membership of more than 12,000 members and affiliates, the FPA is home to Australia’s 5,500 CFP® professionals. Building on a 20-year legacy, the FPA represents the changing face of financial planning from industry to a profession. For more information, visit www.fpa.com.au
CFP®, CERTIFIED FINANCIAL PLANNER® and CFP Logo® are certification marks owned outside the US by the Financial Planning Standards Board Ltd (FPSB). Financial Planning Association of Australia Limited is the marks licensing authority for the CFP® marks in Australia, through agreement with FPSB.