Why training demands for financial planners are increasing
An article in Asset magazine in September canvassed views on education for financial planners. Summerhill’s Caroline Bell was quoted.
In the past few years, training and education for financial planners have changed.
As the industry’s levels of professionalism increase, so does the need for vocational training, higher education and continuing professional development.
But there’s also a need for training beyond technical compliance. This is for “soft skills” — areas such as client-relationship expertise, ethics and professionalism, and business management.
Summerhill Financial Services’ Principal and Representative, Caroline Bell, is a firm believer in continuing education — but not always the sort that’s on offer. “Financial planners need to be technically competent and proficient. That’s a must, as far as ongoing education goes — and it really is ongoing, because regulations and markets change!”
But Caroline has been frustrated by a lack of courses aimed at the more experienced financial planners.
“I like to study topics on an intense level. However, the range of courses available to those of us with a lot of experience in this field is quite narrow. “To keep up to date, I subscribe to a weekly technical bulletin, plus engage in continuing online education. I’m also involved with a tax practice, so keep current that way too. “However, I would really like to see courses — on a range of topics — that intensely review strategies. Courses that get into technical detail, with a greater focus on the tax implications, and of course, take into account tax legislation references. “Too many courses only touch on detail, without fully analysing a strategy’s implications. It’s very important to follow through a strategy’s impact on clients.”
Caroline’s formal education provided a strong framework for ongoing study.
She holds a Bachelor of Commerce, Diploma of Financial Planning and a Financial Planning Certificate (UK). On top of that, she’s a Certified Financial Planner — the highest level of financial planner.
“Summerhill is also a Principal Member of the Financial Planning Association, the financial planning sector’s peak professional organisation in Australia. Principal Members must pass rigorous pre-admission standards, then maintain education levels.”
Caroline sees formal mentoring as another possible way for financial planners to learn “soft skills”, such as client-relationship expertise. “Although a financial planning practice centres on financial management, it really revolves around people — the clients. It’s about their lifestyle goals, both now and in the future. And for that, you need in-depth strategies and an ability to talk to, and understand, people.”
What qualifications do planners need?
According to the Financial Planning Association of Australia Limited, financial planners need to comply with ASIC’s Policy Statement 146, which sets out minimum requirements:
* holding a Diploma of Financial Services (Financial Planning)
* undertaking continuing professional development – 90 points per triennium for financial planning practitioners; 120 points per triennium for Certified Financial Planners. From this year, an undergraduate degree was required to enter the CFP Certification Program.
The FPA says from January 1, 2008, the educational standards needed to become a financial planner will be raised.