News

Expect new qualification in July: NZQA

Tuesday 3rd of June 2014

It is one of the key requirements for becoming an authorised financial adviser and is recommended for registered financial advisers, although it is not a legal requirement.

NZQA said the new version of the qualification, which will now offer strands in financial advice investment, insurance – life and health, insurance – general, lending – residential property, lending – personal, banking and trustee services, was in the final stages of approval.

Under the new level five qualification, all candidates will need to complete the core standards plus the strands that are relevant to their sector. Anyone planning to provide financial advice will also have to complete the advice strand.

NZQA had sought further information and clarification of certain aspects of the qualification, a spokeswoman said.

The new qualification requires 90 credits, 80% more than required by the level five qualification at present.

The Professional Advisers Association’s learning and development manager, Angi Mann, said it was important for advisers who were already in the industry to keep up with what was required under the new qualification when it came into effect.

The Code of Professional Conduct for AFAs requires that their continuing professional development keeps them up to the competency standard required of new advisers.

She said there would be a period when both qualifications would be available but it was important for advisers to understand the changes in the new qualification before it became the new standard.

Mann said: “When it comes in, it will be the new baseline.”

Changes in the new version of the code require advisers to complete 30 structured hours of CPD over two years.  Mann said it was up to advisers, as professionals, to look at their processes and practices and work out where they might need assistance.  “And maintain and develop their competencies in those areas.”

In their CPD plans, advisers should include keeping up with the changes to the Code and AFA qualifications, Mann said.

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