Degree work continues despite Code opting for Level Five
The Code of Conduct settling on a Level Five qualification requirement for financial advisers won't stop the development of a new degree for the sector.
Monday, May 20th 2019, 5:00AM
Massey has been mulling the possibility of the degree since 2013.
It would be similar to the Bachelor of Accounting degree for accountants.
It is planned to launch in 2020.
The university's Claire Matthews said the decision not to require a degree at this stage for any financial advisers would not stop it.
Work was continuing on the proposal.
The Code Working Group has flagged that a review is likely and a higher standard may yet be imposed on investment planners.
Matthews said she was disappointed it had not been imposed already.
"This is not in line with requirements overseas, particularly in Australia. It would not have been appropriate to move to a higher qualification immediately, but the requirement for a formal qualification was introduced in 2009, and 10 years later a plan to move to require a higher level of qualification seemed a reasonable expectation."
Massey University senior lecturer Michael Naylor has been an outspoken critic of a level five standard.
"The Level 5 curriculum carefully excludes any areas requiring complex or skilled knowledge and visualises the clients of Level 5 educated advisers as middle-income families with limited complications."
He said level five graduates were not not be able to handle areas like; business insurance, commercial property insurance, insurance involving complex underwriting, the selection of shares or the creation of portfolios and commercial lending.
"Any Code which sets Level 5 graduates as the accepted level will ensure that advice remains at the very basic level. The idea of Level 5 graduate offering insurance advice to a business or doing more in the investment field than making a mutual fund recommendation is fraught with danger, as they are not aware of what they do not know, of what additional advice may be required."
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