FASEA - what CAs need to know

FASEA has announced recognition of the CA qualification as prior learning under the new reforms. Further credit for studies in either financial advice or related member specialisation is now being sought.

In brief

  • Advisers who have completed coursework to attain the Chartered Accountant designation since 1972 have been awarded one credit for recognition of prior learning
  • On 30 August 2019, the Government has announced that it will extend the time for existing advisers to meet FASEA’s exam and education requirements
  • Legislative amendments must pass both houses of the Parliament before the extension becomes law

FASEA update – 19 September 2019

On August 30, the Federal Government announced it will extend the time available for financial advisers to complete the mandatory adviser exam by one year and the education requirements by two years. The extensions apply to those considered as existing advisers at the end of 2018 and who were registered with ASIC on 1 January 2019.

The new timetable was announced by the Assistant Minister for Superannuation, Financial Services and Financial Technology Jane Hume who said the government would legislate to provide additional time for existing advisers to meet new qualification and examination requirements set by FASEA. Under the new requirements, existing advisers must complete the FASEA-approved exam by the new date of 1 January 2022, instead of 1 January 2021, and meet FASEA’s qualification requirements by 1 January 2026, instead of 1 January 2024.

Legislative amendments must pass both houses of the Parliament before the extension becomes law.

Having met with Senator Hume and advocating for additional time for financial advisers to meet FASEA’s requirements, CA ANZ is pleased with the Government’s announcement to extend the education and exam deadlines. As we work towards a common goal to improve trust and confidence in the community, we will continue to engage with the Government and FASEA to gain maximum recognition for Chartered Accountants to retain them as trusted advisers in the marketplace.  To that end, CA ANZ has recently made a further submission to FASEA to clarify what financial planning studies will count for further credits in conjunction with the CA qualification.

Education pathways

After months of deliberation, the Financial Adviser Standards and Ethics Authority (FASEA) announced on 18 July 2019 that the Chartered Accountants Australia and New Zealand’s (CA ANZ) CA qualification will be partially recognised as prior learning under the new reforms.

Following numerous member consultations, industry forums, meetings, submissions and discussions with FASEA over the past eighteen months, we are pleased they have recognised the CA Program since 1972 when it became a requirement for CAs to complete a degree plus post graduate studies.

We have continually advocated that Chartered Accountants have a long history of understanding the need for high education standards, ongoing CPD as well as strict adherence to our Code of Ethics.

Advisers who have completed coursework to attain the Chartered Accountant designation in or after 1972 have been awarded one credit for recognition of prior learning.

We are now seeking a further credit for studies in either financial advice or related member specialisations and recently lodged a submission with FASEA requesting further clarification of information required.

In the interim, we are also working to identify education providers to course studies to our members

Exam

All members who were on the Financial Adviser Register (FAR) as at 31st December 2018 and wish to provide personal advice to retail clients post 31 December 2020 are required to complete FASEA’s exam. FASEA has published practice exam questions that can be found on their website.

Help with exam preparation

CA ANZ has partnered with Cram 4 Exam to assist members with preparation for the FASEA exam. This quality 3-step program consists of webinars and a one-day, intensive, face-to-face workshop delivered by experienced and well-respected industry experts. A discount is available for members.   

Foreign Qualifications (FQs)

Following FASEA’s announcement on 18 July 2019, CA ANZ is making further enquiries about how FASEA will now consider the foreign qualifications of our members. We will advise members as more information becomes available.

Assessment of FASEA CPD hours

We are working with CA ANZ’s Education team to implement FASEA CPD hour guidelines to be added to relevant CA ANZ CPD activities. In addition, we have been in contact with FASEA to see how we can assist those members with their own AFSL to assess hours as this is now a FASEA requirement. 

Next steps

  • CA ANZ will continue to work hard with, and alongside FASEA to lift standards, and the next step is to continue to engage with them to clarify what studies will count for further credits.”
  • CA ANZ is working to to identify education providers to provide quality bridging course studies to our members. We will advise members of our recommendations via this webpage and via our e-mail alerts in due course. 

In the media

Submissions

Download and view all the submissions that Chartered Accountants ANZ have lodged with FASEA during the consultation period.

View full submissions

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