From the beginning of 2007 members of the Financial Planning Association (FPA) will have to have a university degree or equivalent to be certified financial planners (CFP).

The move to up the education ante is the latest step in the planners’ extensive resurrection strategy following a devastating report by an Australian Securities and Investments Commission/Australian Consumers Association survey team. The study found about half of the planners who participated were far from perfect in their dealings with clients.

The FPA intends to establish a graduate certificate next year to facilitate members’ transitioning to the new CFP requirement. The move is a part of the FPA’s Professional Partner Program, which is aimed at introducing greater professionalism into the industry.

FPA CEO Ken Breakspear says he’s convinced the move will sort out the “bad eggs” from the industry and increase the number of CFPs in Australia. “There are more than 5000 CFPs practising in Australia, and more than 800 students enrol in the CFP program each semester,” he said.

“The emergence of specialist degrees in financial planning at both bachelor and masters level is a powerful signal that financial planning has gained academic recognition as a distinct occupation grouping.”

Mr Breakspear says when the course starts next year it will be “more academically challenging” than it was formerly, because CFPs will be meeting “rigorous standards in knowledge, skill and ethics” that they have not experienced before.

The FPA’s Diploma and Advanced Diploma in Financial Services (Financial Planning) will continue to be offered beyond 2007, but won’t offer any points towards a degree. Appropriate bachelor degrees which include majors in financial planning will be defined by the FPA, and candidates with a degree in a related discipline, such as accounting, economics or finance can apply for individual assessment.

A degree in any discipline plus the Advanced Diploma in Financial Services (Financial Planning) or equivalent will also be accepted entry to the program. And planners who don’t have a degree, but have more than six years’ experience plus the Advanced Diploma in Financial Services (Financial Planning) or equivalent, will be accepted into the CFP program.