1. TRAINING AND ASSESSMENT FOR FINANCIAL ADVISERS
Presentation to the PAA National Roadshow
Michael Frampton
Manager – Strategy and Corporate Relations
March 2010

2. Getting off on the right foot: Some role clarity…
Securities Commission
Central government regulator
Responsible for the authorisation and supervision of financial advisers
Code Committee
Appointed by the Commissioner for Financial Advisers
Responsible for the development of a Code of Professional Conduct for Authorised Financial Advisers
ETITO
National standards-setting body for the financial services industry
Responsible for the development of national standards and qualifications, and the design and operation of the centrally-administered assessment system for financial advisers

3. What qualification do advisers need
The Code Committee is proposing that to offer category one financial adviser services or a financial planning service, an AFA must either have:
attained the revised version of the National Certificate in Financial Services [Financial Advice] [Level 5] or
hold one of a number of specifically identified qualifications and / or industry designation. It is proposed that if an adviser holds one of these listed qualifications / designations, only certain unit standards within the revised National Certificate will apply

4. National Certificate in Financial Services [Financial Advice] [Level 5]
Basis of Code Committee proposal for minimum competence requirement for authorised financial advisers
Is for people who:
give personalised and specific advice based on needs analysis of a wide range of data
determine appropriate methods, make recommendations for financial solutions and lead the client based on this analysis
have full responsibility for the nature, quantity and quality of outcomes
possess a broad knowledge base with substantial depth in some areas
who work for the client
These advisers may specialise in investment advice, insurance advice, and / or residential property lending advice

5. The assessment system Standard Set Capstone[1] # of unit standards
Form of Assessment A
Core Knowledge No 3
Supervised online examination and workplace assessment via ETITO, or training provider B
Knowledge of Code and Law
Yes 1
Supervised online examination via ETITO only C
Professional Practice 4
Presentation of a portfolio of evidence supported by a competency interview via ETITO only [ETITO or ETITO DAO]
AND ONE of the following: D
Investment Advice, or 2 E
Insurance Advice, or
2 of 4
2 or 3 supervised online examinations and workplace assessment via ETITO, or training provider
Residential Property Lending
[1] Capstone standards are capable of assessment only by ETITO

6. Delegated Assessment Organisation model
The DAO model will form part of ETITO’s centrally-administered system for workplace assessment.
DAO licensing is available to:
Employers with employees and nominated agents
Industry associations
Accredited Training providers with enrolled trainees.
DAO status permits an organisation to conduct assessment for their employees / nominated agents / members / trainees to the workplace practice standards contained within Standard Set C, AND the workplace evidence component of standards contained within Standard Sets A, D and E of the Code Committee’s proposal.
PAA is actively considering DAO status on your behalf

7. Training provision
The current accredited training providers for the National Certificate in Financial Services [Financial Advice] [Level 5] are:
The Open Polytechnic of New Zealand
Adviserlink Ltd
Strategi
These providers are able to provide:
training for all unit standards contained in Standard Sets A, B, C, D and E; and
assessment against Standard Sets A, D and E
A number of other organisations are working towards accreditation
ETITO is actively working to ensure a range of quality training provision is available to financial advisers in both modular and full-course form

8. ETITO assessment fees
ETITO fees for the combination of examinations and workplace assessment required for all standard sets have recently been released.

9. ETITO integrated assessment fees
For advisers requiring assessment against more than one standard set ETITO has devised a comprehensive, integrated solution.

10. The self-evaluation tool
Use the self-evaluation tool at
Provides financial advisers with an indication of any current knowledge and / or skills gaps
Covers all unit standards proposed by the Code Committee [including residential property lending], excluding Standard Set B
The profile report will help determine:
whether there are unit standards for which advisers may need to undertake formal training prior to undertaking assessment;
whether there are unit standards for which advisers may consider undertaking self-directed study, reviewing their practice, and / or speaking with a practice mentor prior to undertaking assessment; or
whether the advisers' knowledge and skills place them in a good position to prepare for assessment, where they will be required to produce evidence of their competence against each of the performance outcomes contained within each of the unit standards.

11. What should advisers be doing now?
Familiarise yourself with the unit standards contained within the Code Committee Competence Proposal
Use the self-evaluation tool at
Review the services of a training provider if your self-evaluation tool results suggest that you need to consider the purchase of training interventions
Review your business practice, undertake some self-directed study or speak with a practice mentor if your self-evaluation tool results suggest that you should consider doing so
Subscribe to the RSS Feed on the ETITO website to remain informed about assessment system developments
Review the draft Code when it is released by the Code Committee on 31 March.
Participate in the Code Committee’s consultation process

12. Timeline*
Today
Self-evaluation tool available for advisers to ascertain competence gaps
Accredited providers available to deliver training to close identified training gaps
Mid-April 2010**
ETITO booking engine opens for assessment reservations
01 June 2010
ETITO assessment regime commences [except Standard Set B]
DAO organisations commence operation
* Timelines are indicative only
** Revised timeframe

13. QUESTIONS

14. TRAINING AND ASSESSMENT FOR FINANCIAL ADVISERS
Presentation to the PAA National Roadshow
Michael Frampton
Manager – Strategy and Corporate Relations
March 2010