Upload
mentor-education
View
182
Download
0
Embed Size (px)
Citation preview
Prepared in conjunction with CoreData
Financial Planning Future Professional
Education Requirements Survey
2016
Prepared in conjunction with CoreData
Contents
2
Methodology 3
Background 7
Key Findings 10
Thank-you & Contact Details 16
Prepared in conjunction with CoreData 3
Methodology
Prepared in conjunction with CoreData 4
Sample size of 540, including 400 financial planners
The report is developed from the collection of quantitative data gathered during April and May 2016.
The data was collected via an online survey that was sent out to financial planners, mortgage brokers and accountants through a variety of channels. These included CoreData’s database of 12,000 financial planners, 5,000 mortgage brokers and 5,000 accountants, as well as Mentor Education’s database.
These efforts resulted in 540 valid responses from advisers, including 400 financial planners, 86 accountants and 54 mortgage brokers.
Prepared in conjunction with CoreData
Demographics
5
Valid PercentFemale 23.7%Male 76.3%Total 100.0%
Valid PercentUnder 30 8.9%30 – 39 20.6%40 – 49 27.6%50 – 59 27.4%60 and above 15.6%Total 100.0%
Valid PercentACT 1.3%NSW 34.4%NT 0.4%Qld 20.9%SA 8.1%Tas 2.0%Vic 23.9%WA 8.9%Total 100.0%
Gender
Age Banded
State
Prepared in conjunction with CoreData
Majority aware of proposed legislation
6
• In the Corporations Amendment (Professional Standards of Financial Advisers) Act 2015, the Government sets out the education and training standards for a person who is, or is to be, a relevant provider of financial advice/services. These standards stipulate that the person:
• Has completed a Bachelor's degree, or equivalent qualification
• Has undertaken a year of either or both work and training that meets the requirements
• Has passed an approved exam, and• Meets the requirements for continuing
professional development.• The large majority (77.2%) of respondents were
previously aware of this development. Awareness is highest among financial planners (82.0%) and lowest among mortgage brokers (46.3%).
Were you previously aware of this development?
Yes77.2%
No22.8%
Proposed Legislation
Prepared in conjunction with CoreData 7
Background
Prepared in conjunction with CoreData 8
FP as profession, within a framework of integrity
http://www.fpsb.org/wp-content/uploads/2016/01/151027_doc_CompetencyProfile_FINAL-2.pdfFinancial Planning Standards Board
• Cognitive Competence• Functional Competence• Social Competence
Prepared in conjunction with CoreData 9
• The Financial Planning Process
• Financial Plan Construction
• Client Relationships
• Insurance
• Superannuation &
retirement planning
• Investments
http://fpa.com.au/wp-content/uploads/2015/09/FPEC_accreditationandcurriculumconsultationreleaseversion16Nov2012.pdf
FP education in Australia reflecting world’s best practice
Financial Planning Education CouncilNational Financial Planning Curriculum (Core Knowledge Areas)
• Estate Planning
• Taxation
• Fund Analysis
• Business Economics
• Commercial Law
• Business Statistics
• Accounting
• Services Marketing
Prepared in conjunction with CoreData 10
Key Findings
Prepared in conjunction with CoreData
65.2%2.2%
21.7%
10.9%
47.0%
1.1%
32.2%
19.6%27.0%
3.0%
50.4%
19.6%
Financial advisers should be required to
undertake a year of work and/or
training
Financial advisers should be required to complete a
Bachelor's Degree or an equivalent
qualification
Financial advisers should be required to pass an exam to ensure consistent
minimum standards of
knowledge and practice
Yes, new advisers only Yes, existing advisers only
Yes, both new and existing advisers No
11
Only one in five do not see value in a Bachelor’s Degree for advisers• There is broad support for requiring
financial advisers to complete a Bachelor’s Degree or pass an exam.
Do you think that …?
4 in 5 see value in degree, exam & professional year
• More than four in five respondents support the requirement for financial advisers to complete a Bachelor’s Degree or an equivalent qualification or a national exam for financial advisers (both 80.4%). Close to nine in 10 (89.1%) support advisers undertaking a year of work and/or training.
Prepared in conjunction with CoreData
55% feel a degree will professionalise the industry
12
A degree in financial planning is a step towards professionalising the profession• There is a widely-accepted belief
that a degree in financial planning will professionalise the financial planning profession, with more than half (55.0%) of respondents holding this view.
• Around half (49.4%) say it will improve consumer confidence in seeking financial advice, while close to two in five (38.7%) say it will help overcome the negative public image of the profession.
• Almost none of the respondents think that it will increase the cost of advice.
If a degree in financial planning becomes the minimum requirement for financial planners,
what impact do you think this will have on the profession?
55.0
49.4
38.7
31.7
19.1
6.7
1.9
6.9
8.3
0 20 40 60
It will professionalise the financial planningprofession
It will improve the confidence of consumersin seeking financial advice
It will help overcome the negative publicimage of the profession
It will lead to higher ethical standards andpractices by financial planners
It will broaden the scope of servicesfinancial planners will be able to offer
Advisers will be forced out of the industry
Increase cost of advice
None
Other
% Yes*Multiple answers allowed
Prepared in conjunction with CoreData 13
• Close to three in four (74.3%) respondents believe that a 24-subject Bachelor’s degree with a broad scope of financial planning will be the most effective at professionalising the financial planning profession.
Which higher education qualification do you believe will be
the most effective at professionalising the financial
planning profession?
75% support a 24-subject Bachelor of FP degree
74.3
25.7
0 20 40 60 80
A 24-subject Bachelor’s degree with a broad scope of financial planning
subjects
A 24-subject Bachelor’s degree in a related discipline (e.g. Bachelor of
Commerce), but with a narrow scope of financial planning subjects
%
Prepared in conjunction with CoreData
Currently providing advice in over 20 product areas
14
A significant number of advisers provide or intend to provide advice in 20 financial advice product areas• For example, more than one in two
advisers (52.9%) provide (30.7%) or intend to provide (22.2%) aged care advice.
• Aged Care is not currently a subject in any current bachelor or masters degree in financial planning in Australia, despite the size and emerging needs of the Baby Boomer demographic.
Which of the following do you currently provide, plan to provide
and do not plan to provide financial services advice on?
72.068.1
63.362.6
57.255.9
50.447.8
43.742.0
38.135.0
30.728.1
22.422.0
18.017.4
13.55.7
10.010.2
12.813.1
12.211.9
18.714.322.0
13.518.0
19.622.2
15.016.5
13.513.39.3
10.012.4
0 15 30 45 60 75 90
Superannuation adviceLife insurance adviceRetirement planning
Investment adviceBudgeting advice
Debt and cash flow management adviceEstate planning adviceSocial security advice
SMSF adviceTaxation planning advice
Inter-generational financial wealth adviceSuccession planning advice
Aged care adviceMargin lending advice
Investment property adviceShare trading advice
Mortgage broking adviceAccounting advice
General insurance adviceDerivatives advice
%
Currently provide
Do not currently provide but intend
to provide
Subjects in current degrees
Subjects not in current degrees
Prepared in conjunction with CoreData 15
Ethics paramount for adviser of the future
The most important attribute of a financial adviser of the future is:• ‘ethical, acting with integrity in
intellectual, professional and community pursuits’ (with an average ranking score of 9.9 out of 10).
Followed by:• ‘apply disciplined knowledge,
principles and concepts’ (6.6); and• ‘critical thinking and creative problem
solving’ (6.2).
What are the most important attributes of a financial adviser of the future?
9.9
6.6
6.2
2.5
2.4
1.7
1.4
1.2
0.7
0.5
0.2
0.2
0 2 4 6 8 10
Ethical, acting with integrity in intellectual,professional and community pursuits
Apply disciplined knowledge, principles andconcepts
Critical thinking and creative problem solving
Access, evaluate and synthesise information
Active and lifelong learners
Teamwork and communication skills
Use technologies appropriately
Global in outlook and competence
Culturally and socially aware
Sustainability-focused, responding toecological, social and economic imperatives
Environmentally aware and responsible
Other
Average ranking score (0 - 10)
Prepared in conjunction with CoreData
Thank you & contact details
t: 0410 484 037e: [email protected]: mentor.edu.au