Difference Between Financial Planning and Accounting

Training for financial planners has additionalordinarily would give full ASIC RG146 / PS146
requirements not expected of accountants in thecompliance. Typically the various ASIC compliance
form of ASIC RG146/  PS146 compliance. Bothrequirements are contained in these courses
accountants and financial planners are expectedincluding, securities, managed investments,
by their respective industries, professional bodiesderivatives, insurance advice and insurance
and clients to have underlying educationalbroking. The Advanced Diploma contains a greater
requirements however this is only a legalfocus on taxation, estate planning and financial plan
necessity for financial planners and notconstructions.
accountants in the majority of their workAccounting courses are broken into areas such as
environment. Financial planners are regulated byfinancial accounting, management accounting,
ASIC in their requirement for them to undertakeauditing and taxation. Whilst as mentioned an
RG146 or PS146 courses if they want to operateaccountant in charge of a large organisation can
as authorised representatives for licence holders.legally have no accounting training, the industry is
Accountants excluding auditors and taxationmature enough that this would be unlikely to
agents are not legally required to be educated ashappen. Often professional qualifications are a
regulation comes through the Corporations lawrequirement to gain senior accounting roles.
which requires any accountant dealing withAs the financial planning industry matures it should
companies to use the Australian Accountingbe expected that the Advance Diploma of
Standard Board's accounting standards which areFinancial Services (Financial Planning) will become
in fact the international accounting standards.the industry requirement for financial planners
The difference comes in the way regulationwishing to progress in their career. Industry
occurs, financial planners' education is regulatedproviders now have Recognition of Prior Learning
while the compliance requirement of followingoptions available which reduces the need for
legally enforced standards is the regulation tooltraditional study methods. Accountants typically
used by ASIC to control accountants. It is legallyneed a degree or even a Masters to be
possible for an accountant to have neverrecognised as educational sufficient to apply their
undertaken an accounting course and still be incraft even though as mentioned this is not
charge of accounting at a large corporation.actually a legal requirement. There are many
A financial adviser alternatively needs to be ASICeducational opportunities for financial planners after
compliant and as a minimum must do RG146 /they finish their RG146/RG146 complaint courses.
PS146 courses. The majority of providers offerThey can also focus on specialist areas such as
this qualification in the form of the Diploma oftaxation, self managed superannuation funds and
Financial Services (Financial Planning) whichforeign exchange.