Strategy
Australia's Commonwealth Bank Ups The Ante Over Wealth Advisor Education Standards
Australia’s Commonwealth Bank says it is taking the “industry lead” on standards of wealth advisor standards by applying them all advisors and licensee staff in supervision and monitoring roles.
Australia’s Commonwealth Bank says it is taking the “industry lead” on standards of wealth advisor standards by applying them all advisors and licensee staff in supervision and monitoring roles.
Effective from yesterday, the bank said the new education standards will apply to advisors operating under the licenses of Financial Wisdom and Count Financial as well as the licensee staff that support them. This follows the introduction of similar education standards in July for Commonwealth Financial Planning and BW Financial Advice, the firm said in a statement.
The move can be seen as part of how wealth management firms around the world have been under pressure to raise professional standards to cope with more complex client demands, not to mention expanding regulatory requirements in the wake of the 2008 financial crisis.
“Applying these educational standards across the CBA Wealth Management Advice business is an important step in ensuring the financial planning industry is recognised as a profession,” said Marianne Perkovic, executive general manager, Wealth Management Advice.
As a minimum requirement of their role, advisors who are currently Authorised Representatives of either Count Financial or Financial Wisdom, and existing staff within the respective firms and practices under these licensees who apply to become Authorised Representatives, will be required to hold either:
-- an Advanced Diploma in Financial Planning or equivalent;
or
-- a degree in finance, business, commerce or a related field;
or
-- a Certified Financial Planner ® (CFP) professional
designation of the Financial Planning Association; or a Fellow
Chartered Financial Practitioner (FChFP) professional designation
of the Association of Financial Advisers; or a Master’s in
Financial Planning; or
-- a degree in any field plus an accounting designation with one
of the Joint Accounting bodies.
The transition to the new system started yesterday and is
designed to end on 31 December 2017.
Transitioning to this new minimum educational standard will
commence from today and will be completed by 31 December 2017.
The bank added that an advisor who applies to be an Authorised Representative of Count or Financial Wisdom from 22 October 2014 will be required to hold either:
-- a degree in finance, business, commerce or a related field;
or
-- a Certified Financial Planner ® (CFP) professional
designation of the Financial Planning Association; or a Fellow
Chartered Financial Practitioner (FChFP) professional designation
of the Association of Financial Advisers; or a Master’s in
Financial Planning; or
-- a degree in any field plus hold an accounting designation with
one of the Joint Accounting bodies; or
-- a minimum of three years relevant full-time experience (or
part-time equivalent) within the preceding five years, as an
adviser* or paraplanner that included substantial involvement in
the preparation or presentation of financial planning advice,
plus attainment of the Advanced Diploma in Financial Planning by
31 December 2017.
