Level 5 cert insufficient for some advice areas

Minimum industry entry requirements are not enough to qualify an adviser to give advice in some specialised areas but it looks unlikely the Financial Advice Code will change to raise the bar any higher.

Last year, the Financial Advice Code Committee reviewed the standards of competence, knowledge, and skill in the code, asking for feedback from the sector on changes which will see more emphasis placed on continuing professional development as well as confirm version 3 of the Level 5 Certificate in Financial Services as the minimum standard for entry to the advice world.

Committee member Tony Dench told the Financial Advice New Zealand National Advisor Conference there is no plan to change the core of the code. 

“The 9 standards that make up the code work in integrated fashion and that’s important because in many cases, and advisors will understand this, the Level 5 minimum will not be enough to deliver quality advice in particular circumstances, perhaps more complicated, it will not be enough to provide advice that is suitable, more may be required in certain circumstances.”