Financial planners’ training places too much focus on product knowledge rather than skills such as communicating effectively with clients, according to Choice magazine’s new Money and Rights publication. The magazine, owned by the Australian Consumers’ Association, says the new national training standard for planners is complicated and allows training inconsistencies that make it difficult for a consumer to judge the competence of the financial planner.

It says people starting out as planners still don’t need a degree to work as a planner and the duration and quality of courses still varies widely. “In some instances, a planner can provide advice after completing as little as a month-long course, while some training providers use open-book multiple choice exams.”

Licensees are legally responsible for ensuring their representatives meet the educational standard and ASIC will undertake some surveillance to ensure they are compliant.

The magazine says that in light of these minimum standards, it is important for the industry to be active in requiring all planners to have a degree. “Despite much discussion about the need to professionalise financial planning, there are many steps still to be taken to ensure this happens.”