In its submission to Treasury’s consultation on the experience pathway for financial advisers, FPEC said that work experience on its own is “unlikely to be sufficient to demonstrate that a professional possesses the appropriate specialised level of knowledge and skills” and recommended that all advisers still be required to hold a relevant degree.
“Whilst education on its own will not prevent the provision of poor advice, a combination of minimum education standards and hands-on experience is likely to provide clients with the best safeguards that their financial adviser is competent to deliver advice that is in their best interests,” FPEC said in its submission.
It added: “We continue to advocate for the fact that all financial advisers should continue to meet the requirement of the Corporations Act 2001 to have an approved degree (AQF level 7 or above) or equivalent by 1 January 2026 to ensure a consistent and robust education standards framework is in place.
“Such a requirement simplifies and provides clarity on the specific pathway and units of study an individual must complete to meet the minimum education standard.”
In April, the government released the exposure draft bill to deliver its election commitment to recognise experienced financial advisers who pass the exam, have 10 years of experience, and a clean practice record.
Currently, existing financial advisers with no degree must have an approved qualification by 1 January 2026.
FPEC added that the removal of a previously required qualification standard would be unfair to those that have already undergone study, and that clients should know whether their adviser has a relevant degree.
“We believe it is unfair and inequitable to initially mandate that existing advisers be required to undertake a formal qualification, only to remove this requirement when so many proactive advisers have spent considerable time and cost undertaking formal study towards establishing financial advice as a profession,” the submission said.
“If the requirement to complete formal study is removed, we believe we need to have the means to recognise and differentiate those advisers who had completed the additional qualifications from those who have used the experience pathway.
“Clients and consumers would be interested to know if their adviser holds appropriate formal qualifications, and this could be highlighted in ASIC’s Financial Adviser Register.”
In the event that the experience pathway continued as outlined, the body also advocated that, at a minimum, advisers should complete an “FAS-approved bridging ethics unit”, while also pushing for a sunset clause.
“If existing advisers applying under this education pathway do not undertake a formal qualification, but rather rely on their experience as demonstrating competency, we strongly recommend the inclusion of a sunset clause to place a time limit of 10 years on existing advisers to utilise this pathway,” FPEC said.
“This will contribute to ensuring that consumer trust in financial advice as a profession is not diminished.”
In May, Financial Services Minister Stephen Jones ruled out a sunset clause in a video message to the Stockbrokers Conference.
“This bill will recognise the qualification that comes with a decade of experience, while maintaining a clean record on the adviser register. There will be no sunset clause on this qualification,” the minister said.
All these clowns whining in the comments about extra education. You give the industry a bad name. Disgraceful, old, outdated.
Another self interested party trying to line their own pockets.
FPEC is primarily made up of academics with one of their main roles being to encouraging the growth of enrolments in financial planning courses.
Had to look this up myself.
FPEC ACTIVITIES
FPEC seeks to raise the standard of financial planning education and promote financial planning as a distinct learning area and a career of choice for new students and career changers by:
Driving the development of university-level financial planning programs through the provision of advice for universities undergoing FASEA accreditation, and by liaising with and assisting FASEA on educational matters.
Supporting structures within the university environment to build financial planning as a discipline by supporting research forums, research grants and by supporting FAAA Academic Awards.
Encouraging industry engagement with academia by promoting the university and industry partnerships, representing academics to regulatory bodies, supporting conferences and activities which bring academia and professional practice together.
Encouraging the growth of enrolments in financial planning courses by promoting financial planning as a career path to university and high school students, seeking to develop and grow scholarship funds, supporting the growth of internships and professional year placements for graduates.
FPEC MEMBERS
FPEC Chair: Marc Olynyk AFP® – Senior Lecturer in Financial Planning Deakin University
Diana Bugarcic – Commercial Manager, TAFE NSW
Ron McIver – Lecturer, University of South Australia
Professor Robert Durand – Professor, Curtin University
Dr Michelle Cull – Associate Dean, Western Sydney University and FPRJ Co-Editor Representative
Dr Kirsten McDonald – Senior Lecturer, Griffith University and FPAF Representative
FPEC Deputy Chair: Julian Place CFP® – FAAA Director
Sarah Abood – CEO, FAAA
Anne Palmer – Co-Head of Education and Professionalism, FAAA
Renae Anderson CFP® – Manager, Select Advice, UniSuper
Greg Cunningham CFP® – Director Cunningham Financial Services
Rebecca Watt CFP® – Snr Remediation Manager, WBC
FPEC ACTIVE SUB-COMMITTEE MEMBERS
Dr Syed Shams – Senior Lecturer, University of Southern Queensland
Dr Julie Knutsen – Adjunct Professor, VU Online
Loretta Iskra – Lecturer, University of Wollongong
Dr Md Akhtaruzzaman – Head of Discipline, Accounting and Finance, Australian Catholic University
Dr Abu Mollik – Senior Lecturer, Canberra University
Funny how all these academics on the FPEC have not disclosed their financial interest in selling more education to advisers. Unless they are offering it for free!
Nearly all from the glorified TAFEs whose courses were approved by FASEA. But barely a quality university in sight, whose courses FASEA deemed worthless. What a cosy cabal.
Who the “F” are FPEC ??
Yet another meaningless body sticking they’re less than 2 cents worth in the trough of financial services regulation.
What a mess it has all become.
I think they’re saying consumers want to see an advisers cv, which I dont believe is correct and they are only pushing this to flog more degrees or post grad subjects. I am masters qualified in fp btw, but I have seen clients who actively say I dont care as long as we get the right outcome, many great advisers have non relevant degrees too. Funnily many Unisuper advisers who advise to educators dont meet full fasea at all. Its all so conflicted. The same educators paid by asic during supposedly independent fasea stages, which failed Australians miserably
Advisers without a degree: do you really want your clients to know that you decided against a bit of study?
My CFP designation has not made me a better adviser in any way at all. Clients could not care less whether I have it or not. Basically, it’s been a waste of money.
If it was a grandfathered CFP designation rather than the postgrad CFP course, then it is basically worthless.
The experience pathway doesn’t just apply to advisers without a degree. It also applies to experienced advisers with high quality degrees and post grad qualifications, who were denied adequate recognition for them by the corrupt FASEA.
Personally I’m quite happy to be listed on FAR as an experienced adviser with high quality degrees. Best of both worlds.
Client’s don’t care, when was the last time a client asked you to see your degree? So if having to complete degree/study that teaches you nothing new, takes you away from your clients and family, and costs a significant amount of money who is the winner? Get it yet, the universities want everyone to think like you, it is how they make their money.
They would say that, wouldn’t they. In reality the majority of clients aren’t interested in advisers educational qualifications. Their more interested in an advisers ability to relate & work with them, their skills, practical knowledge, & experience. In all my years of practice I’ve never been asked about my educational qualifications.
100% correct
Perhaps, it is because qualifications, or lack thereof, are on an adviser’s FSG, FAR, Adviser Ratings and LinkedIn profiles, anyway.
I have to disagree. I live in a regional centre within 1-2 hrs drive from other centres or smaller towns, each with well qualified advisers and experience. However some of those are not FASEA qualified. I am getting a lot of clients from these centres who are driving up to 2 hours for appointments to see me. I am FASEA qualified with other qualifications and very experienced which is what they are after and they are asking the question. With Melissa Caddick, the disgrace of the banks etc, has made these clients to ask the questions about education and experience.
Just saying.