Appearing on a recent episode of the ifa Show, Helen Baker said that the industry must “respect experience” and make changes due to the current requirement for existing advisers with no degree to have an approved qualification by 1 January 2026.
“There is so much opportunity. I think it’s a great role. I love, love, love what I do with clients and seeing their lives the way they are and engaging with people. And I think most advisers do, which is why we do it,” Ms Baker said.
“But I think that 2026 is going to be another deadline.”
The number of advisers in Australia shrank below 19,000 late last year and is predicted to reach 13,000 by the end of 2023.
“And the big problem is we are letting a lot of people go, who have an enormous amount of experience, who can be great leaders and great mentors,” Ms Baker continued.
“But the way that it sits right now, there’s not really an incentive to bring a brand new recruit on out of university and put them in your office. It’s just too expensive and it’s more time commitment.
“Yeah, there are a lot of problems, I think that still need to be addressed.”
The government recently closed submissions to its Education Standards for Financial Advisers policy paper which proposed a pathway coined the “experience pathway” that streamlines the minimum education requirements and recognises on-the-job experience for individuals with 10 or more years of full-time experience.
Listen to the full podcast with Ms Baker here.
All the regulatory BS going on, constant changes to the rules, raising cost to serve, etc has made this an unattractive industry. If you specialise in HNW, you’re fine, keep going. But cannot see how current environment works for those who valued serving middle Australia, in an IFA/SME environment.
For me, my FPA CFP membership is on hold, likely will allow to expire. FASEA exam done. Only 2 subjects to complete by 2026. Easily do-able if I chose to.
However the security of a valued career in FP does not exist. The world is moving on and so are many of us. Direct intensive efforts to careers with a more attractive outlook.
No complaints, no whingeing. Just stating perpective of a former IFA FP.
But Industry Super can put on more Call Centre staff to sell more product – if they haven’t taken the world over yet?
Graduates cant get jobs in FP, however accountants and lawyers are in huge demand.
Don’t forget compliance jobs! we need more and more compliance roles. I think 3 compliance officers should be assigned per financial adviser.