APRA has recently intervened in the Income Protection market with planned changes set for 31 March 2020. This theme is something that could continue beyond 2020.
FASEAs exam and education standards will need to be considered for existing and new advisers as the timeframes for existing advisers are fast approaching. Below is a summary of some key information and timeframes relating to the FASEA education standards:
Existing Adviser
- Pass exam by 1 January 2021, however there is currently an extension on the table with a deadline of 1 January 2022 (the extension has not yet been legislated, however we will keep you updated as soon as new information is received)
- Meet the FASEA Education Standard by 31 December 2024 or if the extension is legislated 31 December 2026
- Existing advisers who have previously completed qualifications above the Diploma of Financial Advice / Planning (AQF5) during their years of practice may be eligible for some recognition of prior learning (RPL).
New Entrant
- Complete an AQF7 (Bachelor’s) degree or higher qualification approved by FASEA, in their own time, taking into account the education provider’s timeline to complete the qualification
- Commence the Professional Year after completing the AQF7 degree (or higher qualification) and can sit the Industry Exam in Quarter 3 of the Professional Year.
More information of FASEAs exams and education standards can be found here.
In the meantime, keep a look out for AIAs exam workshops, or talk to your AIA CDM to find out how we can help you be better prepared. You can also utilise AIAs partnership with Kaplan Professional to help you meet the new FASEA education standards. Find out more.
Late last year, FASEA clarified its position on life insurance commissions, providing the green light for advisers to continue to be remunerated by commissions. As per the FASEA website, provided the client’s best interests are served as is already mandated by statute under the 2012 Future of Financial Advice reforms, then it’s ok to continue to be remunerated in this manner post 1 January 2020.
Moving beyond 2020, we will see the end of payments to advisers for ‘grandfathered’ commissions as a result of the Hayne royal commissions finding. ASIC will also begin to review the impacts of the Life Insurance Framework (LIF) in 2021. This reporting will be used to determine numerous factors including, whether the banning of commissions is required and reviewing how advisers are remunerated for their services. The final report is scheduled to be released by ASIC in 2022.
