FPA to become a professional standards association
Members of the Financial Planning Association (FPA) have overwhelmingly supported the introduction of a new three-year strategic plan which aims to introduce higher standards to the industry and give financial planning recognition as a profession.
The plan was the subject of a vote last Friday in Melbourne which saw more than 87 per cent of the associations’s voting members supporting the new plan. As a result, the FPA will move towards setting professional standards and requiring members to have commerce or relevant degrees and abide by professional standards of conduct.
Prior to the vote, the FPA’s corporate members voted to remove themselves from the association’s register, a move that will cost the FPA $800,000 in annual revenue, but places voting rights entirely with its 8000 practitioner members.
Under the new membership arrangements:
- FPA membership will be restricted to certified financial planners and AFPs;
- Principals will no longer be members or use the FPA brand;
- Eligible local practices can become FPA Professional Practices and use the new brand;
- Eligible principal members can become Professional Partners; and
- An Affiliate category will be created
The strategic plan will take effect from July 1, introducing a new brand and logo, and a sub-brand, FPA Professional Practice. To be eligible for a licence to use the FPA brand, 50 per cent of a firm's practitioners must be Certified Financial Planners and 75 per cent must FPA members.
The plan includes a $15 million marketing and advertising campaign to raise the community standing of members.
From 2013, all FPA members will need an undergraduate degree instead of an advanced diploma and will be expected to enter into the association's CFP program. All certified financial planners must be FPA members.
More information is at www.fpa.asn.au