Increasing numbers of RFAs moving towards AFA status
Most registered financial advisers have taken some of the steps required to become authorised, the PAA says.
Tuesday, August 6th 2013, 7:11AM
by Susan Edmunds
The organisation has been encouraging its members to do some of the modules for the level five National Certificate in Financial Services, even if they do not have to.
PAA general manager Jenny Campbell says: “The whole board is in agreement that we think it’s likely to become compulsory at some point.”
She said it made sense for registered financial advisers to do some of the study now, before it became a requirement. “If it does happen, the cost of education will increase because thousands of people will be wanting to do it all at once. We’re saying it’s a good idea to consider knocking off some of the modules at your own speed before you have to.”
She said the FMA and the Code Committee had indicated that they wanted registered financial advisers to make the step up to become authorised. “The FMA has been talking about how they are uncomfortable with the two designations.”
PAA’s education offerings were run on a non-profit basis, she said, and catered for advisers better than distance learning. “We’re not doing this from a commercial point of view but saying ‘this is a good idea, we want to help you do this in the most cost-effective way possible. We were concerned it was becoming unaffordable and not terrifically adviser-friendly.”
Most of the organisation’s RFA members had taken some steps towards the qualification, she said. “We were really surprised at how many of our membership had at least started the certificate. Most advisers would have at least done something. Quite a number have completed the certificate but don’t want to step up to AFA. They just have it done and dusted as an insurance policy for the future.”
IFA president Nigel Tate said the PAA should be commended for its work in encouraging its members to up-skill. “I think that’s a really positive thing. I think we should have a common standard, whether that’s AFA, RFA or something else, as much importance should be placed on dealing with people’s risk as with investing $50,000 to $100,000 of funds. A lot more damage can be done with insurance.”
He said it was likely that the Government would at some stage do away with the category one and two classification for financial markets products.
Massey University’s Mike Naylor has suggested it is possible that more complex risk products, such as trauma or life, could eventually become category one – as Australia has done.
| « FADC's first hearing over in a flash | Advisers still getting to grips with regulation » |
Special Offers
Comments from our readers
No comments yet
Sign In to add your comment
|
|
Printable version |
|
Email to a friend |
