With the advent of the new regulatory requirements for financial advisers, comes a lot of questions and consternation about exactly what is involved. The prospect of having to return to study and then be assessed against performance criteria for the new National Certificate in Financial Services is making some advisers feel like heading for the hills. So, how much study is involved? What kind of study is it? What does ‘being assessed’ mean?
As a training provider that has recently been subjected to our own assessment for meeting the required criteria to become a PTE (Private Training Entity) to deliver the National Certificate, I would say “advisers take heart”. The process of assessment is not about trying to catch people out – it’s about setting people up for success.
Because the new language (assessment, unit standards, performance criteria, etc.) is unfamiliar, it may make the prospect of studying for the new standards appear daunting, causing people to procrastinate by putting off the process of getting started.
To help allay any anxiety of that nature, let me give you some idea of how we, as a training provider, are working at setting you up for success in the first place; what you can expect when you go down the route of study and assessment in 2010; as well as demystify some of those terms and labels that have been brought into the public arena.
When should I start?
If you’re in touch with developments around the regulatory framework, you will know that there are some Unit Standards still to be finalised. However, the majority have been finalised, so advisers can start now by attending the courses that are available, and start to amass credits.
As the year progresses, you can ease your way to the total of 50 credits required for the National Certificate in Financial Services (Financial Advice) (Level 5) without angsting over whether you will have enough time to complete by 31 December 2010. The key point is that advisers should attempt to get as many of the unit standards completed as early as they can, thereby leaving later in the year to focus on any compliance issues they may need to address plus take advantage of the opportunities that will surely present themselves.
Getting started – choose your route
The first decision is one relating to your personal motivation and what end result you wish to achieve. If all you want to do is just meet the regulations, then the ‘remote’ learning option is the cheapest solution. Strategi Institute and other PTEs will be offering this for those who want it. However, for those advisers who recognise that the world has changed; that client expectations have increased; that regulation will alter the way we operate; and who want to be recognised as a professional, then classroom-based learning is likely to be the most appropriate option.
The added benefit of classroom based courses is that the good ones will provide training and guidance beyond that of just the unit standard content. They will be designed to add value to the adviser and their business. The added investment in these courses will be rewarded many times over via increased adviser productivity, increased revenue, a more streamlined approach to compliance and a better appreciation of what has now changed and how the adviser can best position themselves to maximise the upside.
When you register to attend a course with a training provider, there will be an entry criteria e.g. number of years’ experience working as an adviser. It is important to make the right choice so that you set yourself up for success from the start. You want to attend a course where you are joined by others from your peer group, so that you can share common experiences and challenges; you also want to be sure that you are taking information on board in manageable chunks, appropriate to your level of knowledge.
It’s a bit like going for a drive in your car — you need to consider whether you want to go at speed along the State Highway, taking as little time as possible to get from A-to-B; alternatively, you may be happy to take more time by going the scenic route, knowing that you can take time to stop, think and talk about your experiences along the way.
Strategi Institute provides advisers with a range of options for working towards Level 5. All options lead to the same outcome – achievement of the National Certificate. It’s a question of which speed is most comfortable and appropriate for you.
On the Course – it’s all about learning
As a training provider, it is our responsibility to ensure we include everything you need to know in terms of skills, knowledge or behaviours, so that you can meet the required performance criteria. The course facilitator will make it very clear if an activity on the course is likely to form part of your assessment process, and you will be given ample opportunity to prepare yourself. For example, there might be a process of group discussion on a particular topic, led by the trainer, and your assessment submission might be your own written record of the conclusions arrived at by the various subsets in the group.
The assessment process is very transparent. If you are completing an assessment exercise, you will know about it, because you will be asked to write your answers down on a form that clearly states it will be handed to the course facilitator - for marking at the end of the exercise. And the trainer will tell you whenever that is happening.
Interim Support
A common phenomena for people who attend any type of training course is that, after the initial euphoria and excitement of having learned something new, the commitment to deliver on promised actions is often usurped by the pressure of the daily grind.
One of the reasons a number of people struggle to complete distance learning courses is because the advantages of lower cost and increased time flexibility is outweighed by the disadvantage of solitary learning. It’s akin to the ‘new year resolution’ phenomena – much promise and commitment at the outset but the motivation soon fades away without further support and prompting from others.
For the residential courses, Strategi Institute supports course participants to maintain the momentum by providing a follow-up support call to check on progress. Each participant is entitled to 2 hours’ access to a mentor in between completion of the course and related assignments. These mentors are there to support participants. They will share tips on how to manage your time/situation so that you can stay on track.
All our trainers, mentors and assessors are required to attain the Level 4 National Certificate in Adult Education & Training as a minimum requirement. We also only recruit people who have a significant amount of recent and relevant experience in the financial services industry. Participants can therefore feel assured that our mentors and course facilitators have empathy with the business challenges faced by advisers, as well as being up-to-date with legislative changes.
What is the Standard?
No-one wants to invest valuable time and then fail, and that’s one thing you will not do by going down the NZQA National Certificate route. The assessment standard is designed so that a student is designated as either “Competent” - Congratulations! - or “Not yet competent” - which means you can have up to another two attempts at the parts that you did not get quite right.
Generally, with two chances to re-submit the parts that you didn’t get quite right, most people will succeed at achieving a rating of “Competent” within the specified timeframe (Strategi Institute’s own timeframe is 6 months). This is why it is important to be realistic about your available time and level of experience at enrolment stage - to make sure that you are registered for the most appropriate course in the first instance.
Time Management
As a minimum, all advisers will need to attain Standard Set B (Capstone Knowledge), regardless of whether they are independent or aligned to a QFE. Some will also need to, and others will want to, attain Standard Sets A, C and/or D as well – as cited in the Code Committee’s Consultation Paper on “Proposed Minimum Standards” (pp 7&8) published on 23 October 2009.
And so it will be important to plan and manage your business workload for 2010, taking account of the time required to be either attending courses or completing assignments.
At the Strategi Institute, we help participants to set deadlines for achieving their learning objectives by providing a schedule planner. The planner indicates what needs to be achieved, and by when, if the person is to stay on track with attaining the National Certificate within their specified timeframe.
Of course, life doesn’t always go according to plan, and that is when our mentors will be of most value to participants - to support you with meeting your commitments to timelines.
The language of NQF (National Qualifications Framework)
Words and phrases that do not appear in people’s daily vocabulary have come into play – like ‘assessment’, ‘unit standard’, ‘performance criteria’, and ‘competence’. Even for some learning specialists, this can be a challenging vocabulary. Here is a brief jargon buster of labels and terms that you may have come across:
ETITO – Electrotechnology Industry Training Organisation (known as ETITO) is the Industry Training Organisation (ITO) for several New Zealand industries, including financial services, and is the national standard setting body that writes the Unit Standards for the National Certificate. The Standards are drafted by expert groups and circulated to industry stakeholders for comment and contribution. Once they are agreed to and registered, they are subject to review by stakeholders and experts on a regular basis.
Unit Standard – This is a statement of the desired education and training outcomes to be achieved. It is the role of the training provider to interpret the requirements of unit standards and to accommodate these into the design of training courses and assessment activities. This is how they ensure that course participants learn all they need to know to be able to achieve the Standard. If you wish to, you can download a copy of any Unit Standard and/or National Certificate (which is a qualification achieved by successfully completing a specified number of Unit Standard credits) at www.nzqa.govt.nz.
Performance Criteria – Every Unit Standard is made up of a number of Performance Criteria. These specifically state what it is that a person needs to be able to do – the learning outcomes from the training course. These are what course participants are assessed against.
Assessment – A collection of evidence from a candidate, so that an Assessor can make a judgment about whether or not they have achieved the “Performance Criteria” for the “Unit Standard”. A candidate will be determined to be either “Competent” or “Not Yet Competent” (NYC). Not all assessment activities are completed by the candidate away from the classroom, some assessments can be included as part of a training course.
Candidate – NZQA’s description for a course participant/student.
NZQA – New Zealand Qualifications Authority works closely with education agencies and ITOs to ensure that all New Zealand qualifications are accepted as credible and robust, nationally and internationally.
Get on to it!
So, now that you know what the process involves, and what the language means – what’s stopping you from getting started? Don’t delay, start today!
Contact the Strategi Institute for details on our upcoming courses in 2010.
Useful websites for more information:ETITO
ETITO for Financial Advisers
NZQA
Code Committee For Financial Advisers
