IFA on definition of structured training
25 November 2011
IFA takes leadership
position on definition of structured training
The Institute of Financial Advisers (IFA) has taken a leadership position on the definition of structured training, developing new guidelines for advisers and education providers to an internationally recognised standard.
The new and improved guidelines are in response to the requirements under the Code of Professional Conduct which requires all AFAs to compete a minimum of 20 hours of professional development, including at least 10 hours of structured training.
IFA chief executive Peter Lee says that, while the Code has a definition for structured training referring to a “structured continuing professional development programme managed by a DAO, QFE, or professional body”, the IFA believes this is too lax and creates uncertainty for advisers and training providers.
“We believe that to be deemed structured, training must meet certain internationally accepted minimum standards. In the Code definition there is also no requirement or definition as to how the material should be delivered, or how its effectiveness should be measured,” Lee says.
The Institute has long held its own minimum standards for Continuing Professional Development (CPD) but the decision to issue new guidelines was in response to advisers seeking greater clarification for the definition following the introduction of new regulation.
“We have listened to those concerns and in response have developed guidelines which are of a robust and internationally recognised standard for the wider financial industry,” Lee says.
Based on international best practice, the IFA has developed six dimensions for the definition of structured training:
• Time: A minimum of
60 minutes and in 30 minute allocations thereafter
•
Content: Be research-based learning,
designed or appropriate for, financial advisory
professionals
• Professional
Knowledge: Align to one competency area outlined in
the Institute’s Self-Assessment Guide
•
Format: Have a clear instructional design
based on best practice in adult learning
•
Measurement: To measure learning through a
combination of immediate testing (eg a quiz or test) and
longer term results that improve professional outcomes in
behaviour, knowledge, practice, personal or organisational
development
• Integrity: Be
presented by a reputable presenter/third party
The new guidelines will apply to IFA advisers and course providers seeking Institute approval from 1 January 2012.
Lee says the Institute wants to engage with the wider community about the standards, which he hopes will become generally adopted.
He says the Institute is also about to introduce
a new streamlined approval process for providers, to help
them meet the new criteria.
ENDS
For
further information please contact:
Peter Lee
Mob: 0275 760 780
Chief Executive
Institute of Financial Advisers
IFA Vision
To be the trusted and
vital professional body for financial advice in New
Zealand.
IFA Mission
To help our
members achieve their potential as professional financial
advisers for the benefit of the New Zealand
public.
IFA Background
The Institute
of Financial Advisers is the professional body for some
1,100 members, representing financial advisers in New
Zealand. All members are individual members, not corporate
members. We estimate that our members provide advice to
some 200,000 New Zealanders each year, many of whom would be
couples rather than individuals, with an overall client base
of around 600,000.
Our members provide advice to their
clients in the areas of insurance, investments, financial
planning, work-based savings and insurance, retirement
planning, estate planning and financial services generally.
Their professional practices reflect the broad spectrum of
New Zealand businesses – they operate as local SME’s,
are part of large regional or national dealer groups, are
associated with strong financial organisations, services
companies in banking, funds management, or insurance, work
in employee benefits organisations, or sometimes practice as
lawyers, accountants and other professional advisers.
The
Institute reinforces compliance with a code of ethics and
practice standards, runs a Professional Conduct Committee
and Disciplinary Tribunal that are independently chaired,
offers education pathways that can lead to professional
designations and the attainment of internationally
recognised adviser marks, maintains and ensures compliance
with a continuing professional development programme, and
provides networking, education, development, and business
practice forums at a national and regional level for
members