3 minute read
PAA
Clarifying qualification
confusion
Not sure what the introduction of the New Zealand Certificate of Financial Services (NZCFS) means for your qualification standing or options? In simple terms, the New
Zealand Certificate of Financial Services is an updated iteration of the National Certificate of
Financial Services (NCFS).
Similar in name and similar in outcomes, they are both recognised as AFA minimum competency standards (of four available) but with two key differences: (1) the NZCFS incorporates new competency requirements including legislative changes both generally and for each strand of advice, and (2) the NZCFS can be completed and a full qualification awarded without completing the Financial Advice module (or Set B and C) for advisers choosing not to apply to be an AFA.
See the table below.
Part way through the National Certificate?
You have options, which may or may not include switching to the NZCFS. On balance, it is the latest, most up-to-date qualification of the two, so if you have only dipped your toe in, it is likely that transferring to the NZCFS is the most straight-forward path. Here are a few options to consider and guidelines on what the transfer would involve.
1. Completed more than half of the NCFS
Complete the qualification.
Either continue and complete the other Standard Sets in the NCFS, or complete the bridging programme to the Mortgage Advice option (likely an online multiple choice test), and complete the Core Knowledge module.
3. Only completed set A core knowledge
Either continue and complete the other Standard Sets in the NCFS, or complete the bridging programme to the Core Knowledge module (likely an online multiple choice test),
The old to the new: How the qualifications differ in structure *Dark blue denotes compulsory papers; light blue denotes options
Competency Core Knowledge
Financial Advice NCSF Set A – Core Knowledge Set B - Capstone Knowledge Set C - Professional Practise NZCFS Core Knowledge
Financial Advice Compulsory for advisers who wish to apply to be an AFA (Code Committee requirement)
Investment Advice
Mortgage Advice
Insurance Advice
Trustees Banking Personal Lending Set D – Investment Specialist Set E – Residential Property Lending Specialist Set E – Insurance Specialist Investment
Mortgage Advice
Insurance Life & Health Insurance Fire & General Trustees Banking Personal Lending
and complete your specialty strand module, i.e. mortgage adviser.
4. Completed either set B or Set C, or both
Choose between transferring to the NZCFS using a bridging programme to complete the Financial Advice module (likely an exam and review of client files to assess against additional competency requirements) and your specialty strand module; or continue with the other Standard Sets you need to complete the NCFS.
*Bridging programmes will differ between training providers – get in touch with ProfessionalIQ or Strategi for more information.
Quick takeaways to know
▶ If you choose to complete the National Certificate (NCSF), enrol in the required papers sooner rather than later. While the qualification can be completed until December 31, 2017 it is likely that training providers will remove it from their offering before this deadline. ▶ Compulsory for AFAs and Best Practice for all advisers, your CPD plan should incorporate additional competency requirements as qualifications are updated; i.e. a 2016 qualification will include new competency requirements which were not covered by the same qualification in previous years. It’s a good idea to find out about the latest updates to your qualification in order to identify areas your qualification may not have covered, and ways to close the gap. Training providers have a growing range of options for addressing competency gaps, and there are plenty of in-industry options also. Think laterally and just ask the PAA if you need assistance. ▶ For existing registered AFAs, there is no need to complete the new qualification or bridging programme. However, from 1 January 2018, a calendar mishap resulting in an authorisation lapse will mean that you if you want to apply again for authorisation, you will need to complete the bridging programme and attain the NZCFS. Another reason to stay on top of your AFA Renewal date (the five year anniversary of which is coming up for many this year). ▶ Similarly, after January 1, 2018 new AFAs will only be eligible for authorisation if they have attained the NZFSC. ▶ Training providers – Professional IQ, Strategi and others – will be providing a range of bridging programmes, for both those who would like to transfer from the NCFS to the NZCFS, and for AFAs who would like to demonstrate that they have maintained their competency in line with minimum standards post 2017.
For more information please contact the PAA Learning and Development team on 09 600 5174 or visit paa.co.nz. ✚
