Standards for some advisers could be higher than first thought
The Code Committee has confirmed some issues around pending financial adviser regulation, but has suggested some advisers will have to meet higher educational thresholds than first thought.
Sunday, August 16th 2009, 4:55PM 
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The committee agreed to use National Qualifications Framework level 5 as its "baseline" standard, but has yet to finalise what other competence requirements will be added.
"The Committee will decide which applicants should be assessed against this baseline standard and what further competence requirements in addition to Level 5 might be imposed on them with the detail to be confirmed as part of the Committee's ongoing work plan," Code Committee chairman Ross Butler says.
The committee threw its weight behind a centrally administered assessment system operated by ETITO, the multi-industry training organisation, to assess financial advisers. The ETITO will work with the New Zealand Qualifications Authority to implement the necessary changes to the system governing education standards, and the committee supported implementing a moratorium on training provider accreditation until the standards are in place.
"The committee is committed to a contestable market for training provision in the financial services industry," said Butler in a statement. ETITO will shortly commence discussions with training providers who have an interest in delivering courses" for advisers, he said.
The Code Committee was named last month and will draft a code of conduct setting out minimum standards of competence for authorised advisers. The code is expected to come into effect late next year when the Financial Advisers Act is implemented.
The qualifications framework will be introduced incrementally with full implementation in several years.
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Monday, August 17th 2009
For Adviserlink it will be business as usual. We have been delivering training and assessment to the Adviserlink Level 5 Certificate for over three years, the National Certificate Level 4 for nine months and now the National Certificate in Financial Services (Financial Advice) Level 5. Adviserlink is the only training provider that is accredited and approved by NZQA to deliver the National Certificate in Financial Services, both level 4 and level 5.
Adviserlink also supports a centrally administered assessment system operated by ETITO as this will ensure quality and consistency of assessment, which Adviserlink believes is essential given that it will not erode the high quality assessment standard currently being delivered by Adviserlink. As the only authorised and approved training provider, we have a part to play (and a responsibility to our clients and students) in seeing that it is effectively implemented into the NZ market. We therefore expect recognition of prior learning (RPL) for all of Adviserlink’s past and current students into the proposed centrally administered assessment portal.
Adviserlink is also pleased to see the Code Committee’s commitment to a contestable market for training provision, as it will help further develop capacity and capability of the NZ financial advice industry. Adviserlink recognises the huge task of getting all advisers assessed by the end of 2010. This is why we have worked in partnership with industry to start to build capability across the sectors. With an investment to date in the industry of around $1.9million, including over $430,000 in assessment tools we have the depth of experience to understand the significance of the material impact of this proposed assessment system.
Adviserlink responded to industry demand and invested heavily in developing quality training and assessment tools relevant for industry, and we look forward to contributing to the evolution and future delivery of the new centrally administered assessment system.