Adviser Qualifications

Financial planning is investigating and deciding on the best way to make your money work for you. This is done by working out what you want to achieve, how you might achieve it and understanding any problems you might encounter along the way.

To assist you with this, a professional financial planner may offer advice on investments, estate planning, superannuation, taxation and risk management and use a six-step process to help you work out what you may need to do now and in the future to reach your financial goals.

Financial planners determine a client's short, medium and long-term aspirations then work on an agreed financial plan to meet individual needs. They have strong people skills and are good listeners.

The financial planner and the client review the plan regularly to keep it on track and update it as appropriate. As a financial planner who is a representative of an Australian Financial Services (AFS) licensee, you will use the six-steps of the financial planning process. These are:

1. Gathering your client's financial data, including details on income, debt levels, financial commitments and so on
2. Identifying your client's goals. These may include buying a house, funding education, travel, etc
3. Identifying any financial issues
4. Preparing a financial plan that identifies recommended investments and pays heed to the client's attitude to risk
5. Implementing the financial plan
6. Reviewing and revising the plan to ensure it stays up-to-date and relevant to the economic climate and the client's changing lifestyle

A financial planner can offer general wealth-creation advice and assistance across all financial markets, or specialise in areas such as:

• Retirement planning
• Superannuation
• Estate planning
• Small business financial management and planning
• Trusts
• Taxation
• Investing on the stock market
• Debt and risk management
• Core, life and general insurance
• Managed investments, securities and futures markets

Whether you have just finished secondary school or are of mature age and looking for a new career, financial planning may be the career for you.

As a first step, undertake an entry-level education program recognised by the FPA. These are specifically designed to:

• Provide the knowledge, skills and qualifications for you to become a financial planner
• Help practising financial planners maintain their credentials
• Keep financial planners up to date with the changes affecting the sector
• Provide a pathway to CFP® certification.

If you are already working as an accountant you may be eligible for advanced standing if you wish to become a professional financial planner and obtain CFP® certification.

A CERTIFIED FINANCIAL PLANNER™ takes a holistic and comprehensive approach to preparing a financial plan, covering off all financial aspects. CFP® is the highest professional designation that can be given to a financial planner.

CFP® practitioners have demonstrated extensive industry experience, have undergone rigorous study and must maintain high standards of continuing professional development.

You will need to comply under ASIC's Policy Statement (RG) 146 which has set a minimum requirement to become a financial planning practitioner.

This can be met by the successful completion of a training program that provides the knowledge, skills and integrity requirements of ASIC RG 146, and can be achieved by undertaking the Diploma of Financial Services (Financial Planning).

To then retain your representative status with an AFS licensee, it is necessary to undertake Continuing Professional Development (CPD) on an ongoing basis.

To achieve the internationally recognised CFP® designation, practitioners must then undertake and complete the CFP® Certification Program. From 2007, in line with FPA's continuing efforts to raise professional standards in financial planning, an undergraduate degree will be required for entry to the CFP® Certification Program.

Yes! Financial planning is a dynamic profession in which strong careers can be established.

As Australia's population ages, people are becoming much more aware that their retirement security and comfort will depend more on them and their financial planning efforts, than on government welfare benefits.

The growth in practitioner membership of the FPA, and of CFP® professionals in particular, clearly indicates an increasing demand for well trained and qualified professionals.

In response to legislation, the Australian Securities and Investments Commission (ASIC) sets the licensing and educational requirements necessary for companies and individuals to offer financial product and planning advice and services (see www.asic.gov.au)

AFS licensees must meet relevant education, experience and ethical requirements. Financial planning practitioners who represent licence holders must also meet minimum education requirements prescribed by ASIC.

You can learn more about becoming a financial planner and future career opportunities by contacting Rita Tardito at Professional Investment Services at RitaT@profinvest.com.au