Brad Fox

The Association of Financial Advisers (AFA) has endorsed measures announced yesterday by AMP relating to professional adviser development, following the release of AMP’s financial results and accompanying statements.

AFA CEO Brad Fox said the measures align well with the AFA’s vision for professional standards and contain an appropriate mix of practical and theoretical pathways for advisers. “The requirement for AMP advisers to hold an appropriate designation by the end of 2019, including the AFA’s Fellow Chartered Financial Practitioner (FChFP), which earns one-for-one credits towards a Masters of Financial Planning, is a proactive position that meets public, government and adviser expectations on raising standards,” he said.

When considering support for the announcement, the AFA was careful to ensure the measures would provide appropriate solutions for practising financial advisers who don’t currently hold a degree. “As the required education standards for existing financial advisers will change, we needed to feel confident the measures offered a pathway for highly experienced advisers who don’t currently hold a degree,” he said. “Just as importantly, we were careful to ensure that completing the study provided relevance and commercial value to each adviser as a return on the time and money they will invest in earning the qualification. We were satisfied on both counts.”

Mr Fox said it is significant that the AFA’s FChFP has been included by AMP. “The FChFP’s point of difference is that it combines masters-level technical content with practical business projects that help an adviser focus on not only delivering quality advice, but also with implementing an appropriate advice model,” he said.  “It is ideal for both established and developing advisers and the feedback we have received from AMP advisers who have completed the designation to date, is that it represents exceptional value because it improves both their technical skills and their business performance.”

Mr Fox said the five-year transition time announced by AMP is appropriate.  “Five years gives advisers time to plan around the demands on their personal and business time and to implement transition strategies while also adapting to the requirements of the FoFA amendments,” he said. “Importantly, we believe those who choose to undertake the FChFP will experience improved business outcomes as soon as they start to implement the course work.  The business projects are a practical way an adviser could implement the FoFA changes and other advice practice improvements within their business. We anticipate a number of advisers will step forward and take a leadership position and enrol in the very near future.”

Mr Fox said for some time now the financial advice profession has recognised the need to lift education standards.  “The actions of AMP are a positive trigger to lead the entire financial advice profession further down the path towards professionalism. The time has come to take the leadership on this issue and we will have more to say on this over the next few weeks through our submissions to the Financial System Inquiry and the PJC Inquiry into proposals to lift the professional, ethical and education standards in the financial services industry.”

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Craig Parker

The Association of Financial Advisers (AFA) and national dealer group Affinia Financial Advisers have joined forces to strengthen practitioner professional development.

AFA CEO Brad Fox said Affinia is one of the first licensees to support the AFA to increase the number of advisers who are members of a professional association and committed to professional development.

“We are delighted to be able to join with Affinia to encourage more advisers to become members of the AFA, while also offering a professional program that enhances both the business performance and professional credibility of their risk specialists.”

As part of the new arrangement, advisers who join Affinia will become members of the AFA (if not already) and be offered Australia’s leading Masters-level professional development training for specialist risk advisers that leads to AFA’s Chartered Life Practitioner (ChLP) designation.

Affinia General Manager Craig Parker said the AFA partnership has now been built into Affinia’s own professional development program, the Affinia Risk Academy, to help ensure a high standard of professionalism, training and development.

“Affinia shares the AFA’s goal of increasing professionalism of advisers and we particularly support using development programs that have been purpose-built for advice practitioners.”

“True professionalism means being committed to quality advice through ongoing education, giving back to the profession, and maintaining membership of a peak professional body like the AFA.”

Mr Parker said Affinia’s partnership with the AFA and participation in the Chartered Life Practitioner program helps deliver the confidence consumers need to embrace our profession and seek the financial advice and protection they need.

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The New Zealand Investment Symposium is being presented by an exceptional faculty of Australian investment experts visiting Christchurch this week, exclusively to support Christchurch financial advisers affected by the recent earthquake, and their clients.
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Sydney-based Christchurch expat Graham Rich, and organiser said Wednesday’s Symposium, and a dinner for the 100 delegates and their partners is being hosted free-of-charge for all Christchurch-based financial advisers. A number of financial advisers from as far away as Auckland and Invercargill have also flown in especially to support their colleagues and to benefit from the education.
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The Symposium is designed to achieve several objectives, said Graham Rich of PortfolioConstruction Forum. “Christchurch based advisers have not had time to manage their own continuing professional development recently and so we can help with that by bringing the best of the best investment minds to them. Our presenters really want to offer practical and professional help, to enable investors to get the flow-on benefit of better quality advice. Plus, we get to spend some money in Canterbury to support local business at a time when many conferences have taken the easy option and gone elsewhere. Finally, all surplus proceeds will be donated to the government earthquake fund.”
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The interactive one-day program features leading economists, investment managers and senior business leaders from Australia.
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Speakers, who have all donated their time and costs, plus contributed to the funding, include Australian’s Jonathan Pain investment strategist and author of the Pain Report; Hamish Douglass, CEO and investment manager of Magellan Financial Group; Peter Dorrian, investment specialist of PIMCO; Tim Farrelly, investment strategist of farrelly’s Investment Strategy; Paul Barrett, Head of  ANZ Advice Australia and Graham Rich are New Zealanders who have returned from Sydney especially to present. In addition, George Kerr, CEO of Torchlight Investment Group and John Ombler, acting Chief Executive of the Canterbury Earthquake Recovery Authority will open the program with a briefing and  Brigadier Anne Campbell (NZ Army retired) will close the program with a specialist disaster recovery management session.
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In addition, New Zealand businesses actively supporting the program include Morningstar (an investment research business), OnePath (an investment funds manager) The Strategi Institute (an adviser training business).
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“I reckon all participants can be thrilled with the outcome,” said Graham Rich.

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FPA Chair Julie Berry and CEO Mark Rantall unveiled the strategic plan to delegates attending the FPA 2010 National Conference on the Gold Coast today.

“FPA members have the opportunity now to influence the development of our profession and build consumer confidence in the value of professional advice”, said Ms Berry.

“The timing of this move is exactly right.  There is a new energy in the air; members are telling us they want us to stop talking and do something.  We have listened, and are now setting out on a journey that requires the conviction and action of both the FPA and of members.

“We urge members to get behind our determination to elevate our industry to a universally respected profession”, she added.

Changes to build our profession

“Achieving our goal requires some far-reaching changes to membership and they require the support of 75% of those members who vote”, Mark Rantall told FPA members.

“Our determination is to make the FPA a true professional association in which only individual financial planning professionals have the right to vote.

“If members endorse the changes, financial planning businesses will no longer be voting members of the FPA, though professional practices that meet set levels of FPA membership and CFP® certification will be able to license the use of the FPA brand.

“In addition, recognising their contribution to professionalism in financial planning, licensees may become ‘FPA Professional Partners’ providing at least 25% of their practitioners are FPA members.”

The changes are set out in a consultation paper for members which also outlines a proposal for marketing and advertising campaigns to raise the community standing of members, and introduces a new brand identity and logo for the FPA to signify the higher professional standards of FPA members and distinguish them from non-members.

“When combined with an ongoing campaign to build consumer awareness of the FPA and the CFP® designation, the membership changes will underpin the development of a financial planning profession that inspires the trust and confidence of the community”, Mr Rantall said.

“We anticipate that the FPA Professional Practice sub-brand will become the mark of trust and seal of quality for financial planning practices.  Individual CFP® professionals will continue to use the CFP® mark as the global symbol of excellence in financial planning, supported by consumer campaigns to build awareness of what it means.

“Following discussions with members in recent months we have refined our proposals and received broad support. We are confident that the FPA’s proposals , will be welcomed by the broad membership and other stakeholders, in the interest both of financial planning professionals and the Australian people.

“I encourage all members to give the proposed changes careful consideration, let us have their comments and, most importantly, vote for change,” Mr Rantall said.

FPA members can vote on either electronically or by attending an Extraordinary General Meeting on April 7 2011.

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AMP Horizons Director Tim Steele said the introduction of the Diploma to the Horizons suite demonstrates AMP’s commitment to raising the standards of education in the financial planning industry.

“During our recruitment process at the Horizons Academy we recognised there was a large candidate base looking for the opportunity to complete their Diploma of Financial Services,” Mr Steele said.

The Diploma of Financial Services is designed for those who want to start a career in the financial services industry, or expand on an existing one.

AMP, in conjunction with Pinnacle Financial Services Academy, will offer the Diploma of Financial Services (Financial Planning) as a six month course, with elective face to face weekly tutorials held at the AMP Horizons Academy in St Leonards, Sydney.

Through offering this new course AMP Horizons is adding to its training suite. The Diploma of Financial Services is prerequisite for those who want to be considered for the Academy’s highly sought after Professional Year Program, a financial planning boot camp for those who are serious about becoming financial planners.

“The Diploma further enhances the quality of offering to our future planners, providing them with the first milestone of professional development training and learning, aimed at growing expertise in the financial planning industry,” Mr Steele said.

The structure of the course develops the generic and specialist knowledge required to provide advice to clients, as well as modules focusing on the development of advisory skills and construction of advice recommendations.

“This course offers considerably more face to face time than other programs in the market, providing students with an opportunity to receive direct mentoring and resolve difficulties progressively throughout the training,” Mr Steele added.

Pinnacle is an Australian-owned financial planning education company that provides accredited training services in the financial services sector.

Pinnacle’s Managing Director John Prowse said by offering the Diploma of Financial Services, AMP is boosting the professionalism of the industry.
“Providing comprehensive and high quality training is essential in building strong careers in the Financial Planning Industry. We are delighted to have the opportunity to partner with AMP,” Mr Prowse said.

The first intake for the Diploma of Financial Services is scheduled to commence on 13 January 2011. Completion of this Diploma does not guarantee entry into the Horizons Professional Year Program as standard application process applies.

For more information on the course and enrolment, please contact horizons_academy@amp.com.au or Pinnacle on 1300 782 822 or info@pinnacle.edu.au.

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“Trust is fundamental to the advice relationship,” Dr Taggart said. “We know from our own Back to Basics consumer research that those who have advisers highly trust them – in fact they rank advisers as the most trusted professional, after specialist doctors and dentists. However, those who don’t have advisers don’t trust them. We have to ask ourselves why.”

Dr Taggart said the industry funds movement’s multi-million dollar anti-adviser advertising campaigns had a lot to answer for. “Such campaigns only stoke and prolong the crisis in consumer confidence brought about by the global financial crisis,” he said. “Members’ money could be better spent on campaigns which set about restoring confidence in superannuation and advice, so that consumers are better positioned to grow their wealth and protect their assets.”

However, Dr Taggart said that if the industry funds movement intends to continue with negative advertising campaigns, advisers must prepare for battle.

“We have been too quiet for too long and ultimately, silence becomes consent,” Dr Taggart said. “The future of advice is now up for grabs and the only people who can fight this battle are those of us who truly believe in the value of advice. No-one else is going to fight our battles for us. We have to stand up for what we believe in.”

AFA CEO, Richard Klipin said the Roy Morgan research reinforced aspects of the AFA’s Back to Basics Consumer Research, conducted by CoreData/brandmanagement earlier this year.

“The Roy Morgan analysis says what the AFA has been saying for some time now,” Mr Klipin said, “And that is that the current proposed “reforms” may actually limit consumer access to advice.”

Roy Morgan analysis revealed:

• a ban on commissions may make financial advice unaffordable for the very people who need it most
• proposed ‘reforms’ may in fact impede access to financial advice

Mr Klipin said the AFA will be making a major announcement in relation to restoring consumer confidence in advice at the AFA National Convention which opens on the Gold Coast on Sunday.

The AFA’s Back to Basics Consumer Research, conducted by CoreData/brandmanagement earlier this year revealed that people who receive advice:

• highly value that advice
• are better off
• have greater peace of mind
• have greater control of their financial future
• rate financial advisers as the third most trusted professionals, after specialist doctors and dentists

The Back to Basics White Paper can be downloaded here

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