Diploma of Financial Planning remains essential for non-advice roles

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    The Diploma of Financial Planning (DFP) will cease to be the minimum educational requirement for financial planners in 2019, but it will still remain the qualification of choice for those looking to start their career in non-advice roles, according to Mentor Education Group founder and principal Dr Mark Sinclair.

    “Although the financial services sector is about to enter a new and very different era of compliance and professionalism, the Diploma and Advanced Diploma will still be needed and have very important roles to play,” Sinclair said. Aside from being essential for paraplanners, the qualification has paved the way for those seeking to become financial advisers.

    Following the release of FASEA’s framework, Sinclair finds that when conversations turn to study and qualifications, focus and attention go entirely to the requirements for mature advisers and new entrants.

    Sinclair said post 2024 will be an “era of compliance and entry level qualifications”, adding that ongoing professional development and study won’t be restricted to, or become the exclusive obligation, of the adviser alone.

    “The age of compliance will require the entire advisory practice to be on the same page as the authorised adviser in order to operate efficiently and effectively,” he added.

    This means, beyond 2024, the two qualifications need to be available to advisory practice operational staff and client relationship managers, paraplanners, and prospective advisers who are seeking a preliminary insight into advice provision before seriously taking on the career.

    Sinclair doesn’t doubt many critics will say the DFP for operational staff is overreach, costly, and inconvenient. He knows, in reality, the DFP provides staff a prime opportunity to expand their knowledge base and appreciation of advice delivery that will benefit them and the business.

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