Frequently asked questions

Who is the Strategi Institute?

David Greenslade is the Managing Director of Strategi Limited. He is an industry leader in training and business development for advisers, a sought after speaker on all aspects of finance and investment, is the author of a number of books and regularly has articles or comment published in industry media.

The Strategi Institute is a registered training provider with NZQA and is accredited to provide training and assessment relating to the National Certificate in Financial Services.

What is the National Certificate in Financial Services?

The full title of the qualification is National Certificate in Financial Services (Financial Advice) (Level 5). For simplicity, it is often referred to within the industry as:

a. National Certificate Level 5, or
b. Level 5 National Certificate, or
c. National Certificate in Financial Services

The National Certificate in Financial Services is part of the National Qualifications Framework that is administered by NZQA. The National Certificate in Financial Services is the minimum educational standard required for advisers under the Financial Advisers Act 2008. The Certificate currently has two levels — Level 4 and Level 5.

The level you must attain is dependent upon the type of products you advise on and whether or not you provide a financial planning service. For detailed information on the certificate, please refer to www.etito.co.nz.

The Strategi Institute is registered and accredited as a Private Training Entity (PTE) to deliver training and assessment for both the National Certificate in Financial Services (Financial Advice) (Level 5) and the National Certificate in Financial Services (Level 4).

Why start these courses now?

You can beat the crowd — there is likely to be a huge rush for courses and places may become scarce or course sizes may have to increase. By starting now, advisers will ensure quality training with small class sizes

Minimise impact on business revenue — many advisers will need to contend with attending Level 5 courses, implementing Best Practice processes into their business plus positioning themselves for the new regulatory environment. By starting and completing the courses by mid 2010, an adviser will have time to then focus on implementing Best Practices and taking advantage of opportunities that regulation will bring to those advisers ready to embrace the challenge.

Why would I need this training?

Under the new regulatory environment, there is a necessity for anyone providing advice to prove that they have the necessary competency to do so. The level of qualification is determined by the category of product you advise on, your employment arrangement and the way that the advice is provided.

If you are an adviser practicing outside of a Qualifying Financial Entity (QFE) and you provide a financial planning service and/or provide advice on Category 1 products, then it will be a requirement to obtain the National Certificate Level 5.

If you operate within a QFE and only provide advice on the products of that QFE, then there are instances where the certificate is not required. In these circumstances, you should check with your employer to ascertain your status.

For further information regarding QFEs and Category 1 products, please refer to www.sec-com.govt.nz

If you already hold a Diploma in Financial Planning then it will exempt you from having to obtain certain unit standards.

I’m not an adviser, but I do work in an adviser practice. Do I need to study for the National Certificate Level 5?

The simple answer is NO. Only those who provide a financial planning service and/or advise on or sell Category 1 products, need to obtain the National Certificate. However, if you plan to become a financial adviser in the future, then it may be a good idea to start the process as the courses will provide excellent background knowledge and it may take a number of years to complete the entire process.

What if I am not a practicing financial adviser?

It is recognised that a number of individuals who are not currently practicing financial advisers may wish to undertake the certificate. You may still study towards the National Certificate in Financial Services (Financial Advice) (Level 5) and where evidence based assessment is required, you will need to complete and submit relevant case studies, which demonstrate your competency in all areas equivalent to a practicing adviser.

How can I become an AFA if I don’t have a body of evidence?

Regulators are currently working on a solution that will allow ‘advisers-in-training’ to practise as an AFA.

Which pathway is right for me? Distance learning or classroom learning?

Choosing which learning pathway to take is easy with the Strategi Institute.

Classroom learning exposes you to real experts – qualified trainers who have day-to-day industry experience and can make your Level 5 study a real career-enhancer. Classroom learning enables advisers to learn from each other and share experiences. Those who undertake the Strategi courses rave about how much more they have learned and how they can return to their business and immediately implement new systems and processes that not only make them more compliant, but also help them generate additional revenue.

Distance learning is a less expensive option and means you can avoid spending time away from your business and complete your studies as fast as you want to. And if you’re struggling, whether you’re classroom or distance learning, there’s always someone who can help and guide you through the course work.

How long will it take to achieve my Certificate in Financial Services?

The time frame is dependent upon the following:

• What stream of study is undertaken — classroom Learning or distance Learning
• Course availability
• When ETITO will have the Unit Standard for Capstone Knowledge available (Standard Set B)
• Length of time you need to complete the assessment/assignments
• How soon all the unknowns relating to the new regulatory environment are finalised and  Strategi Institute feels it is appropriate to deliver the last of the unit standard courses. Strategi Institute will not conduct a course, nor teach content which could dramatically change under the regulations.

How much time will I spend away from the office?

Strategi Institute's courses via classroom learning are predominantly 3-day courses, which are positioned throughout the study year so as to not conflict too much with the work you have to do at the office. There will be the opportunity to undertake 1-day ‘bolt on’ courses to handle single Unit Standards.

All classroom courses include manuals, catering, a mentor, student education portal and trained facilitators. Indicative dates are published well in advance. This enables you to choose when and where you wish to undertake your courses. All calendar events, including classroom dates and assignment deadlines are posted on your personal account webpage.

How am I assessed?

There is no need to worry. Memory retention type assessment is not undertaken. Every stage of the assessment process will be clearly explained to you. All assessments are ‘open book’. Assessments will be a combination of multi-choice questions, written essays, case studies and submission of portfolios of evidence. You will have three opportunities to pass an assessment.

Every student will be assigned a course mentor. This person will be skilled in assisting the student to understand the assessment process and coach for improvement when difficulty is encountered with understanding course content or with the assessment process.

If I complete the ETITO’s self-evaluation tool and discover there is a shortfall in my learning, what do I have to do next? 

The ETITO’s self-evaluation tool will provide financial advisers preparing for authorisation with an indication of any current knowledge and/or skills gaps that they might have across a range of Unit Standards contained within the National Certificate in Financial Services (Financial Advice) (Level 5).

It is the adviser’s responsibility to then undertake any required training and assessment via an accredited training provider to obtain the relevant Unit Standards identified as a requirement for that adviser. The ETITO self-evaluation tool is only a tool. It does not exempt you from the requirement to undertake the training/assessment and completion of the tool does not count towards the Unit Standards.

How do I find out whether any of my existing qualifications will be recognised as meeting the educational requirements of an Authorised Financial Adviser (AFA)?

For information relating to the proposed minimum standards of competence, knowledge and skills for Authorised Financial Advisers, visit www.financialadvisercode.govt.nz and download a copy of the Code Committee’s consultation paper released 23 October, 2009. This paper outlines the existing qualifications currently recognised as meeting some of the education requirements of an AFA, as well as the remaining Standard Sets you will still need to complete.

Any qualifications not listed in the Code Committee’s discussion paper will not be recognised, unless it can be clearly shown that specific components of a qualification are directly correlated to a Unit Standard(s). The ETITO’s self-evaluation tool will also assist you in identifying any gaps where you will require training and assessment. Strategi can provide detailed guidance and advice around whether any prior qualification can be recognised.

How do I know whether the training and assessment I undertake will be recognised towards the National Certificate in Financial Services (Financial Advice)(Level 5)?

There are a number of entities in the market advertising themselves as training providers. Anyone is free to provide training on subject matter, which may or may not be included in the Unit Standards of the National Certificate in Financial Services (Financial Advice)(Level 5).

However, only those organisations who have been accredited as a Private Training Entity (PTE) by the ETITO and NZQA are recognised as being able to deliver training of a quality that covers all of the content of the Unit Standards. Furthermore, PTEs are the only training providers able to assess an individual against those Unit Standards.

By training with the Strategi Institute, a registered PTEs, you are ensuring that your training is up-to-date and relevant to the assessment you will subsequently undertake. Successful completion of training and assessment via the Strategi Institute as a PTE is subsequently recognised via the awarding of credits recorded with NZQA.

There are two of us in the same office. Can we get a discount if we use the one manual for our distance learning?

 The distance learning fee is already heavily reduced and at $618 plus GST for Standard Sets A, D & E is excellent value for money. The manual is only a small component of the distance learning fee. The majority of the fee is the assessment process. 

The manual is designed to be a reference resource for you so it is recommended every adviser have a copy. If cost is the issue then you could consider going direct to ETITO and sitting their assessments. The complete assessment process with ETITO where you receive no manual, mentoring or training is $2370 plus GST and if you fail parts of the assessment, then you have to pay to redo that assessment. 

With the Strategi Distance learning pathway, the total investment is only $2,234 plus GST plus you would pay ETITO directly a fee of $275 plus GST for the Standard Set B assessment. With Strategi, if you do not achieve an assessment, you receive detailed feedback about how you did not achieve plus guidance about what you need to do to 'achieve' the unit standard. You then have two additional opportunities to resubmit your work without incurring any additional fee. 

In summary, the ETITO assessment process will cost you $2370 plus GST with no training material provided. With the Strategi distance learning pathway, your investment is only $2509 plus GST and you get complete manuals with it and guidance on how to correctly complete the assessments.

Should I do Standard Set D or E?

The Strategi Institute is a registered and accredited training provider and is not your business adviser. The decision regarding undertaking Standard Set D or E is determined by what products you currently advise upon and sell and what sort of service and advice you provide to your clients. You should also consider what sort of products and service you intend to provide in the future. 

From there, refer to the Draft Code of Professional Conduct for Authorised Financial Advisers issued on 31 March 2010 and in particular refer to Code Standards 17 and 19. 

If you currently only advise on and sell insurance products and have no intention to move into investments, then Standard Set E may be suitable for you. However, if you currently advise upon and sell investment products and also so some simple life insurance, then you may wish to consider Standard Set D. If you do investments and also more complex insurance such as succession planning, business insurance etc, then you need to consider undertaking Standard Sets D & E. 

There is a requirement under Code Standard 17 to ensure that an AFA has the competence, knowledge and skills to provide the service being provided. If you are not providing a particular service right now but intend to do so in 2011, then you may wish to obtain the additional Standard Sets ( if they are required) as part of your Continuing Professional Training (CPT) that under Code Standard 20,you must maintain.

What courses do you have that I can attend?

If you are dealing with an ING BDM under the Helping Hand initiative, then they have a list of indicative course dates that they can discuss with you. Alternatively, see the indicative course schedule. Please note that the courses listed on that schedule are subject to change and the courses are only listed by week, not actual days. 

If you wish to study via Strategi Institute classroom pathway for some or all of the Standard Sets, then all you need to do is complete the registration form and indicate the indicative date. Strategi will contact you very soon afterwards with details on the confirmed dates and venue for that course.

How important is the classroom course pre-reading?

The pre-reading for the classroom courses is designed to enable you to have a good understanding of the material before attending the course. This will enable you to spend more time actively engaged in the course discussions rather than struggling to get to grips with some new terminology during the course. 

The value of the course is in the practical discussions and what can be taken back to the work place to enable you to be more profitable. The pre-reading gives you familiarity with the manual content and layout which makes is faster and easier during the course to locate answers that are needed for the assessments

How much of the assessment work is completed on the actual course?

The amount of assessment work undertaken during a course will vary from Standard Set to Standard Set. For many courses, over 50% of the total assessment work can be completed and handed in at the course. This will save you significant time when you return to your business. The course assessments are all open book, have no time limits and no trick questions. The courses will also give you an opportunity to work on your case studies or portfolios of evidence, thereby ensuring you have a better chance of 'passing' the assessment process first time. The course facilitator and course mentor are also available to assist if you need any clarity around answering any assessment. 

Can I miss a day of the course?

It is recommended that a course be attended full time. Each day of a course is building on the previous day and throughout the course,the assessment process is being undertaken. If a candidate misses a day, then they will need to do some of the in-class assessment work in their own time plus they may miss some valuable discussion relating to the practicalities of applying the Unit Standard content back in the workplace. 

However, if missing a day is unavoidable, then the course facilitator is available each night of the course to provide individual tuition plus the mentor can be contacted to provide assistance with better understanding and completing the assessments.

I have some other qualifications. Can they be cross-credited towards Level 5?

If you have other qualifications and designations and wish to ascertain if they can be cross credited, then the most authoritative source to visit is the Draft Code of Professional Conduct for Authorised Financial Advisers issued on 31 March 2010. Refer to pages 19-21 for a detailed explanation of what qualifications and designations are recognised as alternatives to specific Standard Sets. Every AFA will need to complete Standard Set B.

If I only require one or two of the Unit Standards of a particular course, do I have to complete the full course or just part of it or can I complete something else instead?

Training at the Strategi Institute is delivered through classroom/distance learning structured to provide you with all of the Unit Standards relevant to a specific Standard Set. There is significant cross over between the subject matter of Unit Standards within a standard set. This would make the delivery of training towards individual Unit Standards in isolation ineffective. It is usually quicker and easier for you to just complete the whole standard set. In this instance, the distance learning option is probably the best way to go.

What happens if I do not meet the assessment standards required?

Each time you submit an assessment, you will be provided with feedback to help you submit what is required to obtain an ‘achieved’ status. Each student will be given 2 opportunities to re-sit the assessment, before being required to undertake the course again.

If the appropriate amount of time is applied to pre-course reading, participating throughout the course, then diligently applying what has been learnt to the post-course assessments, there is every likelihood that a student should successfully complete each course. The assessment process is different for every Standard Set. A large part of the assessment process is completed during the classroom courses. Where case study work is required after the course, then there will have been an opportunity during the actual course to practice exactly what is going to be assessed.

Can I transfer from one training provider to another?

The simple answer is yes. However, transferring training providers part way through completing a course may create difficulty in being able to complete (without some repetition) the content of that course. It is best to remain with your existing provider, until you have completed a particular course and then transfer, before commencing the next one.

Are there more advanced courses after Level 5?

Strategi Institute will become a part of your career journey. We intend to offer Level 6 and 7 Certificates, once ETITO has developed them. Strategi already offers a range of skill-enhancing courses and business development consultations. For further information, contact the Strategi Institute.

Does Strategi Institute provide any other courses for financial advisers or support staff?

Strategi provides a comprehensive range of IT, compliance and marketing courses for financial advisers, advisory practice principals, PAs, and financial service companies and their staff. For further information, contact Strategi.

What will financial advisers have to do by December 2010 to comply with the regime?

All financial service providers, including financial advisers, will have to be registered and be a member of an approved dispute resolution scheme. Financial advisers will also be required to have submitted their applications for authorisation (or in the case of a QFE, have submitted their applications for QFE status) and started undertaking any training necessary.

What will financial advisers have to do by June 2011?

Financial advisers wanting to provide financial advice on securities or wanting to provide financial planning services will have to have completed all necessary training and be authorised by June 2011. Similarly, organisations seeking QFE status will have to be approved by June 2011. Any entity or individual wanting to provide advice after this time will need to do so in full compliance with the law.

When will the Financial Service Providers (Pre-Implementation Adjustments) Bill and the Code of Conduct for Financial Advisers be finalised?

It is expected that both the code and the bill will be finalised by July this year. Once the regime is in place, it is expected that advisers will be able to begin engaging more actively with the regime.

How will the ‘pathway to compliance' impact on other financial service providers?

Financial service providers who do not provide financial advice will need to be registered and be a member of an approved dispute resolution scheme by December 2010. If a financial service provider is not registered or has not become a member of a dispute resolution scheme by this time, they will not be permitted to continue providing those financial services.

When can I apply for registration?

Registration for all financial advisers will be available via the Companies Office from 1 July onwards.

What about my Adviserlink courses?

The Draft Code of Professional Conduct issued on 31 March 2010 states that a Certificate in Financial Services from Adviserlink Learning Limited is deemed to be an alternative qualification for Standard Sets A and C. This does not provide cross credits towards the Level 5 qualification. It simply means that an AFA does not have to complete Standard Sets A & C to obtain their AFA competency requirements. Advisers should contact Adviserlink direct to see if the courses they attended in 2009 have enabled them to obtain the Certificate in Financial Services.

What about Standard Set B?

Standard Set B is a one hour on-line multi choice examination conducted by ETITO. The examination covers the various laws and Codes that are relevant to an AFA. There is an ETITO fee of $275 plus GST that all candidates must pay. Strategi will develop a manual\aide-memoire that will have sufficient information to enable a candidate to pass the examination. In addition, Strategi will develop and conduct a series of half day training courses throughout New Zealand. Strategi will only develop material and training for Standard Set B once the Code and all relevant legislation has been finalised. This is likely to be in the second half of 2010. 

When should I do Standard Set C?

Standard Set C is a workplace assessment that involves the submission of three portfolios of evidence. For a number of advisers, this standard set may be a significant challenge as they have not previously documented their client advice to the standards that are now required. Strategi Institute recommends candidates complete Standard Sets A and either D or E before they attempt Standard Set C. The content of the previous standard sets will make it significantly easier for a candidate to successfully complete Standard Set C on the first attempt.

Strategi Institute will conduct a three day course for Standard Set C. This course will cover the content of the relevant unit standards plus will spend time ensuring candidates know exactly what they need to submit for their portfolios of evidence. Where possible, candidates will have time to finalise their portfolios whilst on the course. The course is designed to introduce candidates to the new forms and methodology that will be an integral part of doing business under the new regulations. Standard Set C courses will be available from June 2010 but it is recommended that most candidates delay attending this course until August 2010. This allows candidates to complete other standard sets plus get familiar with the new documentation and then ideally submit their portfolios of evidence based on the new Code Standards and their new method of operation, rather than submitting portfolios based on the way they have conducted business in the past. Please note: there is no requirement to use the new methodology when submitting portfolios of evidence- it is just a good idea to use Standard Set C to not only learn the relevant unit standards but to also :

1. gain an in depth understanding of the Code
2. develop new templates and processes that will be an important part of operating under the new regulations
3. practice new techniques

The submission of portfolios of evidence using the new methodologies will give candidates confirmation that they understand how to operate under the new regulations.

What is Continuing Professional Training (CPT)?

CPT is defined in the Draft Code of Professional Conduct for Authorised Financial Advisers as "training relevant to the financial adviser services the AFA provides or intends to provide".

(Financial adviser services is giving financial advice or making an investment management decision or providing a financial planning service.)
The Code requires all AFAs to undertake a minimum of 20 hours CPT per annum. There must be a minimum of 10 hours of structured training. All advisers must maintain a CPT development plan plus a CPT log.

How do I make a booking?

To make a booking, download the registration form. Complete the form, attach payment, identify the course you wish to attend (by viewing the course schedule that is online) , then mail to Strategi Institute. Once the registration is received by Strategi, you will receive confirmation regarding the course you are registered on. You will be issued a password for the online education portal plus you will receive a comprehensive manual within 10 days of the course commencement.