Welcome to the first technical roundup for 2019. This month’s edition is a summary of technical news that occurred throughout December 2018 and January 2019.
It’s been relatively quiet in Parliament from a financial planning perspective. Throughout December and January, the Financial Adviser Standards and Ethics Authority (FASEA) began to release the final standards to give effect to the new Adviser Professional Standards Framework. The Government also released the 2018/19 Mid-Year Economic and Fiscal Outlook in December, which includes measures aimed at lowering company tax rates to 25 per cent by 2021/22.
Another item of note is the Productivity Commission released an inquiry report that assesses the efficiency and competitiveness of Australia’s superannuation system.
Adviser Professional Standards
- The following determinations have been registered by FASEA: Corporations (Relevant Providers Continuing Professional Development Standard) Determination 2018, Corporations (Relevant Providers Degrees, Qualifications and Courses Standard) Determination 2018, Corporations (Work and Training Professional Year Standard) Determination 2018 and Corporations (Provisional Relevant Providers - Expressions) Determination 2018 which clarifies the below requirements.
- The Continuing Professional Development (CPD) requirements for advisers with 40 hours needing to be completed annually and 70% of this needing to be approved by the licensee (with a maximum of 4 hours of professional reading).
- The list of current and historical degrees that are approved by FASEA for the purposes of meeting the new education standards. This list will continue to be updated as new courses are approved.
- The period of a professional year being equivalent to one year’s full-time work which is comprised of at least 1,500 hours of work activities and at least 100 hours of structured training.
- The professional year plan and how it must address all of the following competencies:
- technical competence
- client care and practice
- regulatory compliance
- consumer protection, professionalism and ethics.
- The expression for a provisional relevant provider (ie an adviser undertaking their professional year who has passed the exam) as either a “provisional financial planner” or “provisional financial adviser”.
Australian superannuation system review
Retirement income disclosure metrics
Australian Securities and Investments Commission
Draft regulatory guide for disclosing fees in PDSs and periodic statements
|Financial Adviser Standards and Ethics Authority
Foreign qualifications and education pathways
Mid-Year Economic and Fiscal Outlook