The FPA has proposed significant changes to its membership, professional standards and branding as the industry body seeks to position itself as a professional organisation and regain the trust of consumers.
Critically, from July 2013 FPA membership would only be open to new members with an approved degree or higher qualifications, FPA chief executive Mark Rantall said at the association's annual conference in Queensland this morning.
As part of the changes, new FPA members would need to undertake a supervised "professional year" program to ensure they earn the right to represent FPA professionals in the community.
In addition to new membership requirements, the FPA board has approved the creation of a new Financial Planning Education Council.
The council, made up of academics, industry participants and other stakeholders, will be responsible for approving higher education programs, FPA membership and the certified financial planner (CFP) program.
"This strategy is about educating professionals and so will focus well above RG 146 or other regulatory initiatives that establish the minimum legal requirements for advisers," FPA head of professionalism Deen Sanders said.
The FPA has also proposed changes such as discontinuing the "principal member" category and restricting FPA member voting to CFP professionals and associate financial planners only.
The body also intends to allow financial advisory practices the use of the FPA brand if 75 per cent of their practitioners are FPA members and 50 per cent are CFPs.
Rantall said the FPA has also created a new logo as part of its move to position FPA members as trusted professionals.
From mid-2011, the association will launch an ongoing consumer marketing and advertising campaign to promote the higher standards and professional standing of the FPA.
"A marketing levy is proposed to be included with the FPA membership subscription to fund this campaign, starting in 2011-12," he said.
