Why you should get your Level 5 finished asap
There is a lot of ‘noise’ in the industry about whether to complete Level 5 now or hold off. The reasons for holding off are various but essentially seem to boil down to two:
- Version 2 of the qualification is coming so I should wait, and,
- There is no rush as I have until the end of the transition period to get qualified.
Before you decide however, make sure you are making it for the right reasons and based on your best interests. Here are some reasons why completing Level 5 sooner rather than later could be the smartest decision for you:
- NZCFS5 V1 is fit for purpose for the next few years. Waiting to start V2 in 2020 may cause unnecessary pressures for your business. Yes, you may have to do some additional minimal work to bring you up to the latest, but all advisers will need to do professional development anyway. So why wait?
- NZCFS5 is more than just an academic standard – it will be your minimum professional standard when delivering advice to clients. While there is a transition period for the academic/upskilling requirements, the requirement to act professionally to the same standard applies from the start of the transition period.
- Closing the gap between v1 and v2 of NZCFS5, will be quick and relatively inexpensive. Even if you could, hypothetically, complete V2 today, you will still need to have completed additional study to bring you up to date at the end of the transition period.
- If you plan to be a FAP, how will you early in the transition period, ensure the compliance of your financial advisers and nominated representatives with the new regime, - especially if they don’t know what standards they must meet?
- It makes commercial sense to not concentrate all your transitional activities into a short space of time. An adviser will remain more productive and be more likely to be welcomed by a quality FAP, if they do the NZCFS5 now rather than wait.
So, what would you rather do during the transition period? Spend your time studying, or spend it on positioning your business to take advantage of the opportunities coming from the changes and making money?
If you need help deciding, contact us and we can help you work out the best decision for your personal situation.