How do financial advisers maintain their competency?

• ASIC sets minimum standards for financial advisers.
• The education and CPD standards for all financial advisers have undergone a major overhaul.
• Industry associations are a good starting point for your enquiries.

In today's demanding employment environment, employees of all types, including financial advisers, must complete continuing professional development (CPD) training and assessment to ensure they are keeping up to date with their industry knowledge and skills.

Professional standards

In March 2017, the Corporations Amendment (Professional Standards of Financial Advisers) Act 2017 introduced reforms to the Corporations Act to raise the education, training and ethical standards of financial advisers.

The professional standards require financial advisers to have an approved qualification, pass the financial adviser exam, participate in 40 hours of CPD each year and comply with the Code of Ethics-a set of principles and core values in the areas of ethical behaviour, client care, quality process and professional commitment.

Financial Services and Credit Panel (FSCP)

From January 1, 2022, the FSCP assumed responsibility as the single disciplinary body for the financial advice industry. The powers of the FSCP include the power to direct financial advisers to undertake specified training, counselling or supervision and to report certain matters to ASIC.

Codes of practice and associations

Advisers are required to provide the highest standards of advice within their means. The following industry bodies and associations have demonstrated the importance of these aims by applying codes of conduct and disciplinary measures.

Some of the associations include the:

• Financial Advice Association Australia (FAAA)
• Tax Practitioners Board (TPB)
• Self Managed Superannuation Fund Association (SMSF Association).

The FAAA is the largest of these associations, and most advisers are FAAA members. The FAAA (faaa.au) has an online list of financial advisers, if you need more guidance on checking their background, education or just getting further reassurance.