Speaking during a House of Representatives standing committee on Thursday, Synchron chair Michael Harrison noted that his study in accountancy is not currently recognised by FASEA as a prior education as it was undertaken at the time as a diploma and not a university course.
When asked how many advisers he thinks are leaving the advice industry because of the current FASEA standard, Mr Harrison replied: “I think a lot.
“Just looking at our own records at Synchron, what we’re seeing is a lot of the older guys are moving into mortgage broking because they consider it less onerous, less regulated, they don’t have to worry and there’s no argument about where the commission is going to appear.
“I think that’s an issue. But I think also anyone over the age of about 55 who looks at going back to university to do a degree is saying ‘It’s all too hard, I’ll find another way.’
“I don’t think we’re achieving the outcomes that are desired. My view is that the outcome we should be for is to help as many people as possible to get financial advice.
“I don’t think we’re doing that in any way, shape or form.”
Mr Harrison’s comments come just weeks after AFA acting chief executive Phil Anderson said prior study needs to be better recognised by FASEA.
“The education standard… does not adequately recognise experience for previous study and, in particular, CPD that’s been done by financial advisers,” he said.
“There’s a lot of longer term financial advisers who are not getting any credit for what they’ve done in the past and required to do eight graduate diploma subjects.”
The FASEA standards also impact those who graduated in 2019 with Bachelor of Commerce degrees from schools not on the list such as Melb Uni, Monash, Sydney etc who could never meet the standard because they were already enrolled in a Commerce degree. FASEA simply not fair because now you have do get the grad diploma in Financial Planning with no RPL.
41 Years Industry Experience
Zero client complaints
B.Bus (Accounting)
B.Bus (Commercial Law)
Dip Financial Planning
Dip Finance
FASEA response…..”does not meet educational requirements”…….”must complete 4 bridging units”
I could and would happily work on till age 70 but I will be leaving the industry 31/12/2025 because apparently I’m not educated enough.
Things change, move with the times.
Suggest you move on Anonymous – when do legal or medical quals become irrelevant and expire???
You’ve inadvertently proved my point, Those PROFESSIONS quals do not expire because they are at the standard required. Ours are not, hence we have to do more study, when they are up to standard they will not expire.
I am in the same boat as you, but you need to take your individualised blinkers off and look at the bigger picture.
but mortgage commissions are also on the way out. that was one of Hayne’s recommendations that it be a user-pay system. I believe it’s already legislated but deferred until 2022.
There is arguably a 50% chance risk commissions are gone in 2022 or 2023 given that the ALP will have the election gifted to them. This means that any financial planner not focusing on HNW clients won’t have a business. Mortgage broking commissions will stay and the compliance obligations are considerably less. Basically the only thing stopping me becoming a mortgage broker rather than a financial planner is all the other people doing the same.
ha ha so funny but true. everyone man and his dog is now a mortgage broker. only requires a cert iv.
Commission chasing cowboys
It appears that 35 years of industry experience and 12 years as an adviser just do not cut it. It doesn’t matter that I have completed DFP, CFP and at least 20+ years of professional development.. I need 4 extra units of a degree to be qualified. It is offensive, however I guess the fresh faced 23yo fresh out of a Uni degree will be more qualified. That is what happens when politicians and regulators make reforms that they clearly do not understand. Australians will be worse off. Never has an industry been persecuted like this one!
CFP is a designation, not a qualification as per the FPA. A bit like a carnival prince.
What are you waiting for
Just get in with it
its too late – many advisers have been pushed out.
Quote: When asked how many advisers he thinks are leaving the advice industry because of the current FASEA standard, Mr Harrison replied: “I THINK a lot.
I personally know there WILL be a lot.
I understand why older advisers are leaving the financial adviser sector. It’s not about financial advice anymore. It’s become very onerous, demanding and taxing. And a difficult area to work in. It’s become more like working in law. FASEA are not flexible, and there should have been criteria for PRL and experience. The Master of Financial Planning would not be calling for an adviser with many years of experience in the industry. Other financial master degrees are far more challenging. What will happen is there will be too many mortgage brokers chasing the same work and fewer financial advisers. Will anyone care? Probably not.
I agree. I was surprised at the low standard of a ‘master’ of financial planning and even more surprised how hard it seems for people aged 50+ to do the degree.
FASEA is a complete farce. I have an Advanced Diploma in Accounting, I wrote to FASEA, about any credits for study, all declined as I haven’t done an approved course, so any individual subjects are irrelevant. That means I needed to even do the FASEA tax related subject….WTF. So I’ll be leaving financial advice before 2025, with 30 years experience, mountains of CPD, DFP subjects and also SMSF Specialist adviser courses. Can’t see how any of the FASEA stuff is benefiting the Australian public to get financial advice!
correct in what you say. i planned my exit a few years ago. i seen this coming. i have other businesses. many advisers have good skill sets they have learned over the last 30 years./ unfortunately the clowns at treasury and FASEA and the government cannot see this. they have been convinced that higher education = better advice. I say to all advisers take the plunge and use your skills you have – the LOSER is the public. Another not yet seen consequence will be the wrong decisions people make in estate planning, wills., centrelink etc because people cannot afford the ludicrous cost. ASIC and the FPA have done a real good job in making the an absolute mess..
Have you considered doing the grad dip. With exemptions you’re probably looking at only 1.5 -2
weeks of work over 12 months and $5k…
Yeah, 2 weeks of work and $5k for absolutely nothing. i refuse to do the FASEA ehtics course for ethical reasons.
How is it possible that lawyers do not have to do any ehtics courses? I expect DIS-Honerable Kenneth Hayne would fail miserably.
QUOTE OF THE YEAR THUS FAR ” I refuse to do the FASEA ethics course for Ethical reasons.” Gold 🙂 LMFAO