Commonwealth Bank has today announced new minimum education standards for Commonwealth Financial Planning Limited (CFP) financial planners, supervisors and managers of planners.
Since 2011 the Bank has transformed the CFP business. There have been changes in management, structure and culture. We have also invested in new systems, implemented new processes, enhanced adviser supervision and improved training. These new standards are an important step in increasing the educational and professional standards of our financial planners, and exceed current industry requirements.
The new education standards include:
· All new CFP financial planners, recruited from today, must hold a degree in finance, business, commerce or a related field;
· All new CFP direct supervisors or managers, recruited from today, must hold a degree in finance, business, commerce or a related field;
· Existing financial planners authorised under the CFP licence and their supervisors will be required to hold either an Advanced Diploma in Financial Planning (or equivalent) or a degree in finance, business, commerce or a related field by 30 June 2017;
· Existing Senior Financial Planners will be required to obtain the CERTIFIED FINANCIAL PLANNER® certification with the Financial Planning Association of Australia; and
· CFP commits to making membership of a relevant financial services industry association a minimum standard required of all CFP financial planners by 30 June 2015.
Executive General Manager Advice, Marianne Perkovic said both the Interim Report of the Financial System Inquiry and the Final Report of the Senate Economics Committee inquiry into ASIC concluded that educational levels across the industry need to be enhanced. Today’s announcement is an important and proactive step to meeting the standards envisaged by those reports.
“The relationship between a financial planner and their customers must be based on trust. The significant transformation in this business since 2011 has been all about building that trust. This is an important next step that continues our investment in the professionalism of the advice industry.”