Meeting the requirements of the Professional Year
12 October 2021
12 October 2021
Money & Life contributors draw on their diverse range of experience to present you with insights and guidance that will help you manage your financial wellbeing, achieve your lifestyle goals and plan for your financial future.
With the Professional Year now mandated for every new financial planner entering the profession, we outline the main requirements and process for the Professional Year for candidates and their supervisors.
Although approved degree programs can equip financial planners with some of the technical skills and knowledge they need to provide clients with a professional standard of advice to meet their specific needs and goals, the Professional Year (PY) augments this with further study and on the job experience in a supervised environment.
While completion of the PY is a regulatory requirement for financial planners and their employers, it is designed to allow them to develop the necessary professional competence to perform their job. It also enables them to keep records that demonstrate this competence has been achieved so that they can be reviewed and validated by their supervisor, in order for the financial planner in training to be registered with ASIC by the AFS licensee as a “relevant provider”.[1]
During their PY, planners progress from Provisional Relevant Provider to Relevant Provider. As a provisional provider, they must be supervised when giving advice to a client. As well as performing this role, the supervisor will support the individual throughout their PY, and take responsibility for reviewing and validating their progress with respect to the Policy requirements, such as desired outcomes.[2]
Candidates can start their PY during the final stages of an approved degree but must complete their degree and pass the exam before starting the third quarter of the PY.[3] [4] They must have a suitably qualified supervisor, who is able to support them and be responsible for evaluating whether they have met their required outcomes, such as work activities and structured learning in the PY plan.
If a supervisor is satisfied with a planner’s progress in achieving outcomes each quarter and expects they can achieve outcomes in the next quarter’s plan, the licensee may approve acceleration of the planner’s program for quarter 1 or 2.[5]
The PY is a significant commitment, for both the candidate and their supervisor. Under the PY Policy “The Professional Year is expected to build on education and professional qualifying programs approved by FASEA.”.[6] PY activities that must be undertaken include significant relevant work and supervised experience (approximately 1500 hours) and structured education and training (100 hours) across a year (or full-time equivalent period).
Relevant study that meets the education and training requirements of PY can include FASEA formal bridging course units, or other options such as:
Record keeping by individuals and evidence-based assessment is a central feature of the PY and there are significant expectations and responsibilities for this requirement:
Licensees are required to keep these records for 7 years.
The quarterly program for the PY is designed to allow financial planners to develop, and demonstrate the following key competencies –similar to the graduate outcomes from relevant approved degrees:
The program also requires the supervisor to review and validate the evidence of competency recorded by the planner. Ultimately, this can support the licensee’s own due-diligence and evaluation planner and the candidate’s registration as a Relevant Provider.
Financial planner Tim Manwaring and his supervisor Greg Cook from Eureka Whittaker Macnaught have shared their personal experience of the Professional Year in the FPA Podcast (link to be provided).
References
[1] Work & Training Requirement (Professional Year) Policy
[2] Work & Training Requirement (Professional Year) Policy
[5] p 5, Work & Training Requirement (Professional Year) Policy
[6] p 4, Work & Training Requirement (Professional Year) Policy
[7] p 6, Work & Training Requirement (Professional Year) Policy
[8] p 4, Work & Training Requirement (Professional Year) Policy
[9] p 7, Work & Training Requirement (Professional Year) Policy
[10] Work & Training Requirement (Professional Year) Policy
[11] p 5, Work & Training Requirement (Professional Year) Policy
[12] Who is an ‘existing provider’ and who is a ‘relevant provider’?
Meeting the requirements of the Professional Year12 October 2021 With the Professional Year now mandated for every new financial planner entering the profession, we outline the main requirements and process for the Professional Year for candidates and their supervisors. Why is the Professional Year important?Although approved degree programs can equip financial planners with some of the technical skills and knowledge they need to provide clients with a professional standard of advice to meet their specific needs and goals, the Professional Year (PY) augments this with further study and on the job experience in a supervised environment. While completion of the PY is a regulatory requirement for financial planners and their employers, it is designed to allow them to develop the necessary professional competence to perform their job. It also enables them to keep records that demonstrate this competence has been achieved so that they can be reviewed and validated by their supervisor, in order for the financial planner in training to be registered with ASIC by the AFS licensee as a “relevant provider”.[1] During their PY, planners progress from Provisional Relevant Provider to Relevant Provider. As a provisional provider, they must be supervised when giving advice to a client. As well as performing this role, the supervisor will support the individual throughout their PY, and take responsibility for reviewing and validating their progress with respect to the Policy requirements, such as desired outcomes.[2] The role of the SupervisorCandidates can start their PY during the final stages of an approved degree but must complete their degree and pass the exam before starting the third quarter of the PY.[3] [4] They must have a suitably qualified supervisor, who is able to support them and be responsible for evaluating whether they have met their required outcomes, such as work activities and structured learning in the PY plan. If a supervisor is satisfied with a planner’s progress in achieving outcomes each quarter and expects they can achieve outcomes in the next quarter’s plan, the licensee may approve acceleration of the planner’s program for quarter 1 or 2.[5] The Professional Year commitmentsThe PY is a significant commitment, for both the candidate and their supervisor. Under the PY Policy “The Professional Year is expected to build on education and professional qualifying programs approved by FASEA.”.[6] PY activities that must be undertaken include significant relevant work and supervised experience (approximately 1500 hours) and structured education and training (100 hours) across a year (or full-time equivalent period). Relevant study that meets the education and training requirements of PY can include FASEA formal bridging course units, or other options such as:
Record keeping by individuals and evidence-based assessment is a central feature of the PY and there are significant expectations and responsibilities for this requirement:
Licensees are required to keep these records for 7 years. Professional Year outcomes and the quarterly programThe quarterly program for the PY is designed to allow financial planners to develop, and demonstrate the following key competencies –similar to the graduate outcomes from relevant approved degrees:
The program also requires the supervisor to review and validate the evidence of competency recorded by the planner. Ultimately, this can support the licensee’s own due-diligence and evaluation planner and the candidate’s registration as a Relevant Provider. How to plan and prepare for the Professional Year[10]
Financial planner Tim Manwaring and his supervisor Greg Cook from Eureka Whittaker Macnaught have shared their personal experience of the Professional Year in the FPA Podcast (link to be provided). More information
References [1] Work & Training Requirement (Professional Year) Policy [2] Work & Training Requirement (Professional Year) Policy [5] p 5, Work & Training Requirement (Professional Year) Policy [6] p 4, Work & Training Requirement (Professional Year) Policy [7] p 6, Work & Training Requirement (Professional Year) Policy [8] p 4, Work & Training Requirement (Professional Year) Policy [9] p 7, Work & Training Requirement (Professional Year) Policy [10] Work & Training Requirement (Professional Year) Policy [11] p 5, Work & Training Requirement (Professional Year) Policy [12] Who is an ‘existing provider’ and who is a ‘relevant provider’?
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