Financial Planning | Understanding the Professional Year in Australia

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Financial Planning | Understanding the Professional Year in Australia

Under the Corporations Act 2001, for any new entrants seeking to become qualified as a financial adviser, they must complete a FASEA Approved Degree, pass the FASEA Exam and complete a supervised Professional Year.

The FASEA Professional Year is a designed to train and develop prospective financial advisers in their technical ability, client care and practice skills, regulatory compliance and consumer protection, and professionalism and ethics. The Professional Year is aimed to ensure prospective financial advisers have the required knowledge and skills to provide personal financial advice to retail clients with respect to retail financial products.

It is a very simple process for a company to register a new entrant into the FASEA Professional Year.

Professional Year Broken Down

The Professional Year is broken into four quarters which equates to a minimum of 12 months full-time equivalent. This comprises of 1600 hours, of which at least 100 hours is required to be structured training. The quarterly framework provided by FASEA is as follows:

  • Quarter 1: Client Observations and support to Supervisor/Experienced Adviser
  • Quarter 2: Supervised Client Engagement and Advice Preparation
  • Quarter 3 and 4: Indirect Supervision of Client Engagement and Advice Preparation.

Professional Year candidates will need to have completed their FASEA Approved Degree and passed the FASEA Exam before commencing quarter 3. At this point in time, they will be required to be authorised by the Licensee as a Provisional relevant provider.

The Professional Year candidate will be required to disclose to their client that they are a Provisional Financial Adviser and disclose the name of their supervisor.

Costs

There is no cost to enrol an employee into the Profession Year. The Licensee will likely charge an ongoing licensing fee for the provisional financial adviser in quarter 3 and quarter 4. This cost will vary depending on the Licensee.

The FASEA Exam costs $540 + G.S.T per sitting and it takes 3.5 hours to complete which includes 15 minutes reading time.

Useful tools

FASEA have provided a number of useful tools and templates to assist organisations with putting their employees through the professional year. Some of the templates include Logbooks, Certificates   and explanatory notes on how to complete a logbook.

Conclusion

New entrants are looking to join organisations who understand the Financial Planning Professional Year, so it is important for organisations to have a detailed understanding of the steps involved. It is also important for organisations to acknowledge the Financial Planning Professional Year as one of the Factors Impacting Financial Adviser Salaries.

Contact RIVA Recruitment

If you are an employer looking to hire an employee to put through a Professional Year, or you are a financial planning graduate seeking to become a financial adviser, please feel free to contact Fabian Ruggieri, Director at RIVA Recruitment, on 0434 943 647 for further information.

RIVA Recruitment specialise in financial planning and investment management recruitment across Australia.

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Fabian Ruggieri

Fabian Ruggieri

Fabian Ruggieri is a highly driven financial services recruitment consultant with over 10 years experience across wealth management, private banking and recruitment.
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