As you may well be aware, the Financial Adviser Standards and Ethics Authority this week announced its draft guidance on the professional year for new entrants to the financial services industry.
In its release, FASEA outlined the proposed rules for the professional year, which any and all new entrants to the industry must complete before they can embark on the provision of financial advice.
The draft guidance states that “The professional year is an essential component of the educational qualifications and standards that all new entrants are required by law to undertake before they can provide personal financial advice to retail clients”.
“The requirement is intended to ensure consistent, minimum professional standards of education and competence apply to financial advisers nationally.”
Details of the the full proposed guidance on the FASEA professional year can be read on FASEA’s website here.
In another announcement also published this week, FASEA clarified that advisers undertaking their professional year will be deemed “provisional financial advisers” during this 12 month period and must be referred to as such until completion.
FASEA also announced draft guidance on the use of this term, which can be viewed here.
Both announcements present an interesting challenge for advice businesses, advisers and new entrants to the industry. Practices need to be thinking now about how they will adapt and change their internal compliance processes, recruitment process and how they will manage the training process when and not if the FASEA standards are finalised, and how Advisers will free up time within the business in order to meet any ongoing education requirements on top of current time requirements.
You should talk to Practice Dynamix to see whether our Practice Management and efficiency experts can help free up time within your business.