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.
Thursday, April 3rd 2025, 6:37AM
by Kim Savage
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.”
“That’s the responsibility of the advisor and the responsibility of the FAP to deliver that and that will be recognised by advisors as they go.”
The committee is poised to pass on its recommendations to the Minister of Commerce and Consumer Affairs for a final decision. Included will be an ask for more flexible options for professional development (CPD).
“It is much more than going along to a course and receiving a certificate at the end of it,” says Dench.
“It may be mentoring, it may be an ethics course, it may be time on the job, time reading so providing a more flexible way to achieve what is required for an individual adviser’s CPD.”
Any changes agreed to by the Minister will need to be passed into law, before being reflected in the code.
“Competence is not a destination, it’s not a one stop, one and done,” says Dench.
“It’s very important to continue to improve that and the continuing professional development absolutely implies an increasing capability.”
“That becomes a partnership between the advisor and the advisor’s FAP and of course the national body which can deliver the CPD opportunities.”
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