Research Paper on FASEA's Educational Standards for Financial Planners

Introduction

Financial planning is one of the important operations in business organizations. Determination of business success is done through the analysis of financial planning approaches (Thompson and Maginn, 2012, p. 12). Different financial institutions apply educational standards to ensure professionalism and competence in the planning processes. Currently, FASEA has established various educational standards for all financial planners. The educational standards released by FASEA include qualifications, essential provider's degrees, and courses standards. The released standards are provided in the first amendment. The standards are instrumental in consultation; therefore, ensuring effective financial planning.

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The legislative instrument implemented by FASEA is normally updated with critical information from providers of higher education based on their approved historical operations and historical degrees. The educational standards from FASEA also include the predetermined recognition for prior learning (RPL). The RPL is important for education undertaken to achieve a professional designation (Huang et al., 2012, 32). A program called Certified Financial Planner (CFP) was introduced in 2003 to assess the pursuant to FESES's standards and accreditation procedures and policies for financial advisers and planners.

The financial advisers and planners are given two credit after completing the CFP program as provided by the pathways of the educational standards established by FASEA. Currently, FASEA has worked with various higher education institutions to promote historical degrees and enhance information transformation. Also, FASEA has also worked with different industrial groups in the analysis and evaluation of appropriate recognition of the learning opportunities after a follow-up and determination of information provided by the industries. The package provided by FASEA includes the changes made in the explanatory and determination statements provided for public consultation. FASEA is one of the important departments in Australia because it establishes policies, standards and ethical values for all financial advisers in the country; therefore, promoting effective planning the financial institutions (Thompson and Maginn, 2012, p. 18). This paper provides comprehensive information on the standards and ethical considerations imposed by FASEA for higher educational providers/institutions practicing financial planning.

Additional Requirements for Financial Planners

After the release of FASEA's guidance provided on the educational standards for Australian financial advisers. The provision of the educational standards resulted in confusion in financial planning because most of the members in Australia were not able to understand the guidelines of the standards. In most cases, the standards were vigorously imposed for members who have undergraduate and post-graduate degrees. The qualified individuals with the desire to further their studies were given priority in the establishment of educational standards (Gurran, 2011, p., 42). The imposed standards by FASEA was implemented according to the requirements of the Professional Standards of Financial Advisers Act of 2017. In this case, the existing advisers and planners are required to complete their degree-level education from any credible institution by 2024 to be recognized under FASEA standards.

The ethical, educational, and training standards for financial advisers and planners. FASEA standards imposed by FASEA are normally licensed and implemented under Australian law. The minimum educational level has changed according to the new requirements provided by FASEA. According to the standards imposed by FASEA, the maximum requirement for a new member is a degree-level from an approved financial institution (Thompson and Maginn, 2012, p. 28). The bachelor's degree is should contain 24 subjects that relate to financial planning. According to the imposed requirements, the existing advisers and planners are required to have attained a maximum requirement of an approved diploma that comprises of eight subjects. Also, the minimum educational requirement for all existing advisers in Australia is one related/bridging course. The Code Monitoring Bodies and FASEA and Code of Ethics regulate the minimum required an educational level in for an individual to become a financial adviser and financial planner. The bridging courses recommended by FASEA include the Ethics for Professional Advisers, Financial Advice Regulatory and Legal Obligations, and Consumer and Client Behavior, Decision Making and Engagement (Thompson and Maginn, 2012, p. 14).

The educational requirements vary depending on the categories of advisers in Australia. There are three groups of financial groups recognized under the Australian law and all financial institutions in the country. First, existing advisers are people who provide personal financial advice to different retail customers and clients between 1st January 2016 and 1st January 2019. An individual member is considered to be an existing financial adviser if he/she has not been suspended, banned or disqualified by the authority. According to the Australian law and FASEA's standards, an existing adviser is an individual identified and listed in the register of the financial advisers before the end of 2018 (Gurran, 2011, p., 62). The second category of financial advisers in Australia is career changers. The career changer category includes all entrants licensed after the end of 2018 but they should have enough professional experiences from various industries operating in financial planning activities. According to the new requirements imposed by FASEA, all career changers must attain an approved AQF level 8 qualification from credible institutions.

AFA Expectations and Interpretations

The announcements made by FASEA was complex and long; therefore, making it difficult for financial advisers and planners to interpret the requirements of the educational standards. The documentation and evaluation of the ethical and educational standards resulted in confusion in the country; therefore, necessitating for the importance of determining the expectations of FASEA upon imposing the standards. During the formation of FASEA in 2017, the main objective of the founders was to guide the existing advisers; therefore, promoting effective financial planning in all institutions operating within the territories of Australia. The bridging courses were primarily important than the degree of the existing advisers. The common relevant and recognizable degrees in Australia include Accounting, Commerce, Finance, Business, and Law (Gurran, 2011, p., 98). There are established pathways into financial advice that enable professional planners to perform their roles. The established pathways also ensure that the financial advisers attain the minimum required level of education.

According to the FASEA standards, those advisers who completed their relevant degrees before starting the financial profession, the approved degrees are considered and determined as appropriate in financial planning and advice (Gurran, 2011, p., 86). Many people with qualifications in the financial planning perceive that all degrees earned more than ten years are invalid in the profession, but the expectations of FASEA standards do not provide for such regulation. Advisers holding degrees older than teen years are still recognized under the standards of FASEA but they are required to complete one of the financial planning bridging courses. The bridging courses are important because they do not require extensive study as compared to a graduate diploma in financial planning.

Education Consideration for Financial Advisers having Different Qualifications

The Australian Qualification Framework (AQF) provides different levels to be considered before an individual is recognized as a financial adviser. Educational qualifications are analyzed based on the type of degree held by an individual in relation to financial planning. AQF level is normally administered and regulated by the national government of Australia. Educational qualification promotes professional competence and effective performances (Gurran, 2011, p., 82). The level of education included in the FASEA's standards include certificates, diplomas, and degrees. FASEA ensures that national consistency and recognition of financial advisers in Australia; therefore, promoting economic growth. The standards established by FASEA on ethical and professional practices also ensure that the educational qualification approaches used in recognition and understood by all education providers and financial institutions. The learning and operation outcomes are determined by the educational qualifications of the financial advisers at their respective levels.

The consideration of the existing financial advisers has been classified into various groups based on their actions and what FASEA is going to do for the members. The determination of specific education consideration focuses on the qualifications and competence of the advisers in the profession. The first category is a financial planning degree approved by FPEC. There is no further action to be done for this category because the degree is already approved. The approved financial planning degree offers the desired professional skills to advisers; therefore, ensuring high competence. The second group is a non-approved degree in financial planning. In this non-approved degree, the concerned education institutions are required to apply the standards established by FASEA to ensure a retrospective recognition. The advisers with the non-approved degrees in financial planning normally wait until FASEA approve their institution. Also, the non-approved degrees' holders are required to contact their respective education providers before applying for recognition under the FASEA standards.

Thirdly, the relevant degrees in related courses are also important in determining the recognition of the advisers. The relevant degrees include Finance, Law, Commerce, Business, Accounting, and Economics. In order for an individual to be recognized as a competent and qualified financial adviser, FASEA offers the appropriate and available bridging courses to these people. the person seeking recognition must wait until detailed information is provided by the education providers and FASEA on the effective bridging courses to be undertaken rather than doing a full graduate diploma. The fourth group in the determination of the qualification levels of financial advisers is an unrelated degree that includes Science, Arts, and Teaching. For appropriate recognition of the financial advisers, FASEA provides the bridging courses and the individuals are required to analyze an appropriate bridging course that fits them and competence; therefore, ensuring professionalism in the financial planning operations. Lastly, FASEA standards also account for people without tertiary qualifications. To achieve recognition, FASEA proposes for a graduate diploma consisting of eight subjects.

The Australian law recommends for increasing the educational standards to ensure that all financial advisers achieve effective professional skills and competence; therefore, ensuring appropriate financial planning in all institutions within its territories. The desire to increase the minimum educational requirements for people to be recognized as financial advisers have gained a lot of reform from politicians, media, and regulators. The reforms are important in ensuring that all people financial advisers in Australia attain the minimum educational requirements as demanded by the...