New landmark legislation has restricted the use of the term to those who are properly licensed.

The Financial Planning Association of Australia promoted the move for several years as necessary to benefit consumers and raise professional standards.

Australia’s Parliament passed the Corporations Amendment (Professional Standards of Financial Advisers) Bill 2016, which enshrines the term Financial Planner / adviser in law and restricts use of the term to those who are properly licensed.

Any person claiming to be a Financial Planner in Australia without having the appropriate qualifications to do so will be breaking the law.

The global Financial Planning body FPSB welcomed the legislation package, saying it significantly raises the professional standards and education level required of Financial Planners in Australia, upgrading those standards from a short course to include:

• A degree qualification;
• Completion of a “professional year”;
• Successful completion of a registration exam;
• Completion of ongoing continuing professional development; and
• Adherence to a code of ethics for Financial Planners.

FPSB congratulated the Financial Planning Association of Australia on its role in the introduction of the legislation.

Noel Maye, CEO of FPSB, said: “This is a tremendous outcome for the Financial Planning profession in Australia, and yet another step forward in establishing financial planning as a recognized global profession. FPSB congratulates FPA Australia on its years of hard work and determination to secure this fantastic recognition.”

Dante De Gori, CFP, CEO of the FPA Australia, said: “Consumers have long been able to rely on the fact that FPA members and CFP professionals subscribe to a Code of Professional Practice and Code of Ethics, and meet rigorous education and competency standards. Now, the public can be assured that everybody holding themselves out as Financial
Planners in Australia will need to be similarly trained, experienced and subject to an enforceable code of ethics. We are delighted.”

The legislation will be effective from 1 July 2017.

FPSB is the owner of the Certified Financial Planner and CFP Logo mark outside the United States. The Chartered Institute for Securities & Investment is the marks licensing authority for the CFP marks in the United Kingdom, through agreement with FPSB.