IFA Calls For Common Standards

11 April 2011

IFA Calls For Common Standards For Professional Development Training

The Institute of Financial Advisers (IFA) is calling for common standards for competence, in particular the "structured credits" which Authorised Financial Advisers (AFAs) are required to complete under the new Code of Professional Conduct.

Institute of Financial Advisers chief executive Peter Lee says at present there are no set standards or definitions for continuing professional development or the "structured credits" under Code Standard 18 of the Code of Professional Conduct.

Only Qualifying Financial Entities (QFEs), Delegated Assessment Organisations and professional bodies can issue structured credits.

"The Securities Commission says the Code is a principles-based regime and therefore interpreting the Code is up to these organisations," Lee says. "However, we feel it is important to provide a standard benchmark for the provision of these credits."

The IFA has undertaken to create some definitions for structured credits. Lee says that while the IFA will probably have over a third of the expected AFA numbers as members and could go it alone, it would prefer to work with others in this initiative.

The IFA has been in discussions with ETITO and knows of plans by other course providers to issue their own definitions. "The problem is that the industry runs the risk of have several and varied definitions of structured credits. We feel it would be more appropriate if we could all sit down at the one time and thrash it out ideas to ensure all parties can agree". Lee says he'll be encouraging others to do that in early May.

A related area is that of "competency". The IFA's Professional Development Committee is currently defining competency areas and skill levels in key areas, based on its membership of the 25-country Financial Planning Standards Board which has set international best practice for financial planning knowledge. Professional Development Committee chair Liz Koh says "we don't need to reinvent the wheel. They've done a lot of the work for us and this way advisers get access to what is the world standard in each key area."

Ahead of the new standards being implemented, IFA is also revamping its professional development focus. "We will be rolling out a newly structured approach to creating professional development plans at our roadshow in May and June," Lee says.

ENDS

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