Last week, Wealth Data figures showed that as many as 3,166 advisers on the Financial Advisers Register (FAR) do not have a degree and would benefit from the experience pathway.
On Tuesday, the government opened its consultation on the experience pathway, a proposal that seeks to equate the worth of a degree with 10-plus years of experience in the industry.
The consultation revised the dates for eligibility, which Wealth Data founder Colin Williams said would benefit a greater number of advisers.
“Initially, it does mean that approximately 424 additional advisers, up from 3,166 to 3,590 additional advisers, could benefit with the 10-year term extended to December 31, 2021, as opposed to 2019, as initially indicated last year,” Mr Williams said.
“The 3,590 advisers have start dates before December 31, 2011, and are currently not showing as holding a degree.”
Advisers must complete the equivalent of 10 years’ service within a 15-year period starting 1 January 2007 to 31 December 2021.
“Moreover, advisers can write to the minister and ask for their qualifications to be reviewed, as many very good qualifications were not approved for so-called ‘technical’ reasons,” Mr Williams added.
“This approach recognises degrees that were not recognised under the previous FASEA regime due to missing a small ‘advice’ component and/or deemed too old. This will be seen by most as a very positive and refreshing approach.”
Commenting on the announcement, Minister for Financial Services, Stephen Jones, said it was a “transition measure” aimed to stop the exodus of experienced advisers, with no history of misconduct.
“The Albanese government is committed to an advice industry with strong professional standards that gives Australians access to high-quality financial advice. This has been made more difficult by the previous government’s mishandling of the new education and qualification framework,” Mr Jones said.
“Since 2019, over 10,000 financial advisers have left the industry in response to new standards. Many were unsuited to the requirements of the new industry, which include professional qualification. However, this has pushed some experienced advisers, with no history of misconduct, out of the industry, reducing access to advice.”
Wealth Data also found that there was a net loss of 15 advisers for the week ending 20 April, though there has still been an increase of 53 advisers for the year. There were four new licensees this week, while two ceased operations.
“The number of advisers active this week who were appointed or resigned was 69. It was a busy week for some licensees with significant adviser movement, and we expect many of the advisers who resigned to reappear in the coming weeks,” Mr Williams said.
What a con. The requirement for a degree has been known for over a decade, and it has already been kicked down the road once.
The ALP are just keeping the education standards low in order to benefit Industry Super Funds.
Ministerial discretion in relation to qualifications only applies to new entrants, and only in a narrow range of circumstances. It does not apply to the many perfectly good degree level qualifications of existing advisers, that FASEA refused to adequately recognise.
Yeah, let’s keep worrying about ourselves hey…. Because that’s historically served our INDUSTRY well….. Lets not bother rising to the occasion and doing what is BEST for clients and one another and our PROFESSION…
How about focusing on the clients benefiting from these changes. Clients who will no longer lose an adviser who has done their job for many decades but would otherwise have to do useless study that does not benefit advisers or clients. Without this there will be many more thousands of clients who need advice who will become orphaned for ideological education standards that ignore real world learning and experience.
Isn’t the point that the real world learning and experience isn’t being ignored anymore?