The report is developed from the collection of quantitative data gathered during April and May 2016. The data was collected via an online survey that was sent out to financial planners, mortgage brokers and accountants through a variety of channels. These included CoreData’s database of 12,000 financial planners, 5,000 mortgage brokers and 5,000 accountants, as well as Mentor Education’s database. These efforts resulted in 540 valid responses from advisers, including 400 financial planners, 86 accountants and 54 mortgage brokers.

1. Prepared in conjunction with CoreData
Financial Planning
Future Professional Education
Requirements Survey
2016

2. Prepared in conjunction with CoreData
Contents
2
Methodology 3
Background 7
Key Findings 10
Thank-you & Contact Details 16

3. Prepared in conjunction with CoreData 3
Methodology

4. Prepared in conjunction with CoreData 4
Sample size of 540, including 400 financial planners
The report is developed from the collection of quantitative data gathered
during April and May 2016.
The data was collected via an online survey that was sent out to financial
planners, mortgage brokers and accountants through a variety of
channels. These included CoreData’s database of 12,000 financial
planners, 5,000 mortgage brokers and 5,000 accountants, as well as
Mentor Education’s database.
These efforts resulted in 540 valid responses from advisers, including 400
financial planners, 86 accountants and 54 mortgage brokers.

5. Prepared in conjunction with CoreData
Demographics
5
Valid Percent
Female 23.7%
Male 76.3%
Total 100.0%
Valid Percent
Under 30 8.9%
30 – 39 20.6%
40 – 49 27.6%
50 – 59 27.4%
60 and above 15.6%
Total 100.0%
Valid Percent
ACT 1.3%
NSW 34.4%
NT 0.4%
Qld 20.9%
SA 8.1%
Tas 2.0%
Vic 23.9%
WA 8.9%
Total 100.0%
Gender
Age Banded
State

6. Prepared in conjunction with CoreData
Majority aware of proposed legislation
6
• In the Corporations Amendment (Professional
Standards of Financial Advisers) Act 2015, the
Government sets out the education and training
standards for a person who is, or is to be, a
relevant provider of financial advice/services.
These standards stipulate that the person:
• Has completed a Bachelor's degree, or
equivalent qualification
• Has undertaken a year of either or both work
and training that meets the requirements
• Has passed an approved exam, and
• Meets the requirements for continuing
professional development.
• The large majority (77.2%) of respondents were
previously aware of this development. Awareness
is highest among financial planners (82.0%) and
lowest among mortgage brokers (46.3%).
Were you previously aware of this
development?
Yes
77.2%
No
22.8%
Proposed Legislation

7. Prepared in conjunction with CoreData 7
Background

8. Prepared in conjunction with CoreData 8
FP as profession, within a framework of integrity
http://www.fpsb.org/wp-content/uploads/2016/01/151027_doc_CompetencyProfile_FINAL-2.pdf
Financial Planning Standards Board
• Cognitive Competence
• Functional Competence
• Social Competence

9. Prepared in conjunction with CoreData 9
• The Financial Planning Process
• Financial Plan Construction
• Client Relationships
• Insurance
• Superannuation &
retirement planning
• Investments
http://fpa.com.au/wp-content/uploads/2015/09/FPEC_accreditationandcurriculumconsultationreleaseversion16Nov2012.pdf
FP education in Australia reflecting world’s best practice
Financial Planning Education Council
National Financial Planning Curriculum (Core Knowledge Areas)
• Estate Planning
• Taxation
• Fund Analysis
• Business Economics
• Commercial Law
• Business Statistics
• Accounting
• Services Marketing

10. Prepared in conjunction with CoreData 10
Key Findings

11. Prepared in conjunction with CoreData
65.2%2.2%
21.7%
10.9%
47.0%
1.1%
32.2%
19.6%
27.0%
3.0%
50.4%
19.6%
Financial advisers
should be
required to
undertake a year
of work and/or
training
Financial advisers
should be
required to
complete a
Bachelor's Degree
or an equivalent
qualification
Financial advisers
should be required
to pass an exam to
ensure consistent
minimum
standards of
knowledge and
practice
Yes, new advisers only
Yes, existing advisers
only
Yes, both new and
existing advisers
No
11
Only one in five do not see value in a
Bachelor’s Degree for advisers
• There is broad support for requiring
financial advisers to complete a
Bachelor’s Degree or pass an exam.
Do you think that …?
4 in 5 see value in degree, exam & professional year
• More than four in five respondents
support the requirement for financial
advisers to complete a Bachelor’s Degree
or an equivalent qualification or a national
exam for financial advisers (both 80.4%).
Close to nine in 10 (89.1%) support
advisers undertaking a year of work
and/or training.

12. Prepared in conjunction with CoreData
55% feel a degree will professionalise the industry
12
A degree in financial planning is a
step towards professionalising
the profession
• There is a widely-accepted belief
that a degree in financial planning
will professionalise the financial
planning profession, with more
than half (55.0%) of respondents
holding this view.
• Around half (49.4%) say it will
improve consumer confidence in
seeking financial advice, while
close to two in five (38.7%) say it
will help overcome the negative
public image of the profession.
• Almost none of the respondents
think that it will increase the cost
of advice.
If a degree in financial planning becomes the
minimum requirement for financial planners,
what impact do you think this will have on the
profession?
55.0
49.4
38.7
31.7
19.1
6.7
1.9
6.9
8.3
0 20 40 60
It will professionalise the financial planning
profession
It will improve the confidence of consumers
in seeking financial advice
It will help overcome the negative public
image of the profession
It will lead to higher ethical standards and
practices by financial planners
It will broaden the scope of services
financial planners will be able to offer
Advisers will be forced out of the industry
Increase cost of advice
None
Other
% Yes
*Multiple answers allowed

13. Prepared in conjunction with CoreData 13
• Close to three in four (74.3%)
respondents believe that a 24-subject
Bachelor’s degree with a broad scope
of financial planning will be the most
effective at professionalising the
financial planning profession.
Which higher education
qualification do you believe will be
the most effective at
professionalising the financial
planning profession?
75% support a 24-subject Bachelor of FP degree
74.3
25.7
0 20 40 60 80
A 24-subjectBachelor’s degree with
a broad scope of financial planning
subjects
A 24-subjectBachelor’s degree in a
related discipline (e.g. Bachelor of
Commerce), butwith a narrow scope
of financial planning subjects
%

14. Prepared in conjunction with CoreData
Currently providing advice in over 20 product areas
14
A significant number of advisers
provide or intend to provide advice in
20 financial advice product areas
• For example, more than one in two
advisers (52.9%) provide (30.7%) or
intend to provide (22.2%) aged care
advice.
• Aged Care is not currently a subject in
any current bachelor or masters
degree in financial planning in
Australia, despite the size and
emerging needs of the Baby Boomer
demographic.
Which of the following do you
currently provide, plan to provide
and do not plan to provide
financial services advice on?
72.0
68.1
63.3
62.6
57.2
55.9
50.4
47.8
43.7
42.0
38.1
35.0
30.7
28.1
22.4
22.0
18.0
17.4
13.5
5.7
10.0
10.2
12.8
13.1
12.2
11.9
18.7
14.3
22.0
13.5
18.0
19.6
22.2
15.0
16.5
13.5
13.3
9.3
10.0
12.4
0 15 30 45 60 75 90
Superannuation advice
Life insurance advice
Retirement planning
Investment advice
Budgeting advice
Debt and cash flow management advice
Estate planning advice
Social security advice
SMSF advice
Taxation planning advice
Inter-generational financial wealth advice
Succession planning advice
Aged care advice
Margin lending advice
Investment property advice
Share trading advice
Mortgage broking advice
Accounting advice
General insurance advice
Derivatives advice
%
Currently
provide
Do not currently
provide but intend
to provide
Subjects
in current
degrees
Subjects
not in
current
degrees

15. Prepared in conjunction with CoreData 15
Ethics paramount for adviser of the future
The most important attribute of a
financial adviser of the future is:
• ‘ethical, acting with integrity in
intellectual, professional and
community pursuits’ (with an average
ranking score of 9.9 out of 10).
Followed by:
• ‘apply disciplined knowledge,
principles and concepts’ (6.6); and
• ‘critical thinking and creative problem
solving’ (6.2).
What are the most important attributes
of a financial adviser of the future?
9.9
6.6
6.2
2.5
2.4
1.7
1.4
1.2
0.7
0.5
0.2
0.2
0 2 4 6 8 10
Ethical, acting with integrity in intellectual,
professional and community pursuits
Apply disciplined knowledge, principles and
concepts
Critical thinking and creative problem solving
Access, evaluate and synthesise information
Active and lifelong learners
Teamwork and communication skills
Use technologies appropriately
Global in outlook and competence
Culturally and socially aware
Sustainability-focused, responding to
ecological, social and economic imperatives
Environmentally aware and responsible
Other
Average ranking score (0 - 10)

16. Prepared in conjunction with CoreData
Thank you & contact details
t: 0410 484 037
e: mark@mentor.edu.au
w: mentor.edu.au