The Financial Advice Association of Australia (FAAA) is delighted that the experience pathway issue has been successfully resolved, offering advisers greater clarity regarding their status within the industry.
“It is good that the experience pathway issue has been resolved. It has been subject to debate since late 2021, leaving many advisers unsure of their future in the profession. We welcome the recognition of the experience of long-serving financial advisers,” said the chief executive officer of the FAAA, Sarah Abood.
“Minister Jones should be congratulated for drawing a line under this matter.”
She specifically emphasised the incorporation of certain enhancements into the presently highly prescriptive regulations that dictate the coursework obligations for newcomers entering the profession.
“Students will now have the ability to have their studies reviewed and potentially approved via Treasury if their units do not exactly match the determination. This is a critically important concession; we need many more advisers entering our profession, and we don’t want to be putting artificial barriers in the way! Students should no longer need to repeat courses, at great cost in time and money, if they have effectively mastered the content already,” said Ms Abood
“We know that amongst our own membership there are many advisers and students who will benefit from this legislation”.
The FAAA had earlier requested several changes to the government’s experience pathway plans. Initially, the body asked for the pathway to oblige advisers to have membership in a professional association or to complete an approved ethics course by 1 January 2026.
“A requirement to complete the Code of Ethics Graduate level subject would ensure that all practicing advisers have a shared understanding and body of knowledge of our legislated code,” Ms Abood said in May.
This, however, was not endorsed by Financial Services Minister Stephen Jones.
The FAAA also sought the inclusion of a 10-year sunset clause. Namely, Mr Abood argued that this provision would guarantee that the pathway serves as an appropriate transition for established and experienced financial advisers and planners, minimising the potential for misuse.
Without the clause, she said, “we will be in a position whereby planners currently in their thirties could continue to practice indefinitely with no further qualifications required”.
Mr Jones, however, opted against making the inclusion. Instead he said: “Mostly, this bill is providing us with time to manage the transition while we clean up the settings on education qualifications to facilitate and improve pathways for entries into the system. I’ll be doing more work on a pathway for new entrants over the second half of the year.
“This is about taking measured pragmatic approaches that protect consumers, gives them access to qualified advice and works with industry, not against it.”
The experience pathway legislation was passed by Parliament last week. In a subsequent statement, Mr Jones said: “The new legislation will recognise the experience of financial advisers who have passed the financial advisers’ exam and have 10 years’ experience and a clean record, without requiring further qualifications.
“This will help to address the mess left by the last government which oversaw an industry that lost over 10,000 financial advisers since 2019. Ongoing advice fees also increased by 41 per cent between 2018 and 2021. This left Australians without access to affordable and quality financial advice.”
The FAAA is representative body of the product issuers, funded by financial planners, with a history of helping to destroy the financial planning industry that they claim to represent! No thanks.
So happy I wasted $15k and 3 years to boost my qualifications well before Jan 2026, only to witness the industry celebrating this retrograde decision. I want my money back.
Self Education is never a waste of time nor of money.
Congratulate yourself.
Wow no keyboard warriors yet allow me to not be one either and let’s all move on
Have we forgotten that the FPA and Dante De Gori, “gifted” (there words) the meaning of a degree to FASEA. There famous white paper where a Bachelor of Financial Planning Degree from Griffith Uni that paid fees to the FPA owned FPEC for accreditation was 100 points, whilst a mere Bachelor of Business worthless, there CFP and prior learning a mere 10-20 points. How soon Advisers forget that history? A gift to a FASEA board stacked with Academics fearing for their jobs in a mining boom. Yes no wonder some say we should move on and look forward.
I believe this and QAR is now the slow death of Advice as we know it. Measures all designed to make it easier for Hostplus to recruit advisers. Where Hostplus, working from home, will be giving out advice with fries for free. The FAAA realize this as they future source of members and look to them to broaden membership. You can celebrate your victory now but the death of independent advice has commenced.
Maybe, the FAAA should follow other professional bodies, such as the The Royal Australasian College of Surgeons (RACS), and intentionally restrict membership to authorised representatives. Otherwise, we will all be working at McDonald’s. Would you like fries with that, Sir?
I understand the sentiment, but I am not so sure you’re right. I have provided advice both very recently and over many years where clients can already obtain ‘free’ advice from the industry fund they are with. They know this but still choose to use an adviser. Yes, there will always be people who want /need advice for FUM of $50k. Industry Super can have this. I can’t provide value to my client, or earn a living on this type of business. Let them have it.
Probably not a bad idea for you to do more studies. Their, The’re, and There are 3 different words which you did not pick correctly in your sentences (not to mention where and were).
Thanks for your insight, but go back to university (if you havent), or please leave our profession as fast as you can, so we can have educated professionals in charge going forward (definitely not the death, but more like the cleaning of our profession).
Misuse of ….. Their, The’re, and There are 3 different words which you did not pick correctly in your sentences (not to mention where and were)…. would not be a barrier to getting a high mark in any university assessment these days.
FAAA clearly showing its lack of relevance and power. They were deemed entirely irrelevant around all of this legislation. An expensive toothless tiger. The FAAA arguing that planners should have membership in a professional association was laughable and a last gasp at relevance from an ever- increasing toothless tiger. No wonder planners are not renewing their memberships.
When is the FAAA going to stand up. They continue to be a poor representation. They need to take the high bar view.
Pleased EAP issue has been laid to rest. May all financial services stakeholders move forwards as we build this profession so it too can join the ranks of other recognized professions.