Agenda FASEA Royal Commission Challenger …...FASEA PROPOSAL FPA RECOMMENDATION IMPACT ON FPA...

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

Facebook

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