On a new episode of the ifa Show, Mr Jones elaborated on comments he made last December when he said that his party would not require advisers with 10 years of experience and an “unblemished record” to complete a university degree to practice.
Currently, existing advisers with no degree must have an approved qualification by 1 January 2026.
“So, a new person entering the industry today, an appropriate degree qualification with additional professional stuff is absolutely the right model,” Mr Jones said.
“But we’re in a transition and there’ll be a bunch of people who’ve been providing excellent advice for decades that we don’t want to tip them out of the industry at exactly the time when we need them.
“We need them as mentors, we need them as service providers, we need them as trainers, we need them in the industry,” he added.
The current requirements have been criticised by a number of groups within the sector, including the FPA, AFA and The Advisers Association, with CEO Neil Macdonald saying the industry will experience a “mass exodus” by 2026 if changes are not made.
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.
“Let’s take a step back and say, ‘let’s do some recognition of their prior learning and experience, not a Mickey mouse job’. So we’ll do it properly,” Mr Jones continued.
“There’s been some concern in the sector for everyone who’s done the degree that, ‘That was a waste of time for me when somebody else is going to get a free ride?’
“We’re not saying it’s a proper recognition of your professional experience and qualifications so that you can jump through the right hook for you in a way that is good for you, but safe for the people you’re advising.
“That’s the way we want to go. I think it just makes militant good sense to be honest.”
Listen to the full podcast with Mr Jones here.
There’s no shortage of University qualified Accountants in jail. Jones has got it right. Plus new entrants are still required to meet all the unit requirements. If you could ever find any entrants that don’t get attracted to other sectors first.
Bill Shorten actually stated to the media that would endorse and implement every single recommendation by Hayne, BEFORE the recommendations had been released!!!
So, Bill said 100% of all recommendations would be supported without even seeing or considering them!!
If that is not politics, then what is !!!!!!!
Degree to sell investments and charge a ridiculously excessive annual fee for a 45 min appointment once a year ? what’s next , real estate agents needing a masters.
Let’s see him disclose to the cent how much his party is receiving from Industry Super. And let’s see him do this BEFORE the election. He’s got my vote if it’s zero.
Lets become a profession, really really slowly. At this rate, most new entrants will be retiring before it actually happens.
Whilst it’s nice to see some sense finally prevailing, I seem to recall that the legislation received bipartisan support and very little genuine consideration, so maybe I’m a bit cynical that this is just political fluff. Did Mr Jones personally vote for or against the legislation? Fixing what you assisted in breaking should hardly be a platform for a future unless you’re also willing to acknowledge your own involvement, errors and lessons and can clearly articulate how you won’t make a bigger mess with the “fix.”
It’s also a little bit late for some of the Advisers and their families who’s lives and livelihoods were wrecked as a result of this horrifically managed Professional transition. Legislation is a blunt instrument and while most would agree that change was needed, that axe was swung loosely and with blatant disregard to consequences by both sides of politics. At least there appears to be some future starting to shine through, it’s a good step in the right direction.
Seems like a bunch of pollies who have attacked advisers for the last 10 years suddenly want to win an election. I will be putting both the ALP and Libs last when I vote
We’re now saying anything to get in power. Two years ago Labor called out changes to FASEA as watering down consumer protection measures and pushed the Government into doing nothing. They also pressured the Government into accepting all of the recommendations out of the Royal Commission saying they would adopt 100%.
Ultimately, based on past history this guy will take orders from the ISN and AustralianSuper. Any changes will benefit a person selling super funds in a call centre. We saw Julia Gillard and Kevin Rudd being the mouth piece of those Super funds carving out exclusions and making face to face advice harder and it’s just going to be a repeat. The Mono Rail Party or the Hot Balloon Party is looking attractive come May. Seems odd there’s not one Financial Planner willing to set up our own gig in return for a life time pension.
We’ve all done too much ethics training to ever become a politician
That bloke can’t even construct a grown up argument. Extremely disappointing when would be political leaders speak like teenagers
I recommend Mr Jones speaks with “the industry” rather than a few groups lobbying government.
We all want to move forward and we all want to be respected as a profession. To do this everyone must be degree qualified.
I have been an IFA adviser for 20 years. I also just finished my 5th Grid Dip Subject. Its been a huge cost to my small business and personal life, however, its the right thing for my clients, the industry and myself personally.
Those that deserve to remain in the industry will get on with it and do the right thing – get degree qualified.
If Stephen Jones knew anything about what the requirements are for existing advisers, he would see that there has been massive recognition of the “prior learning and experience” of advisers. No existing adviser needs to do a 24 unit degree to stay in financial planning.
At worst, an existing adviser who currently only holds the bare minimum quals of a Diploma course will need to do 8 units of a Graduate Diploma course. So there has been two-thirds cut from the Degree required for new entrants. That’s a massive concession. Other advisers with higher quals like an Advanced Dip Financial Planning should get a further 2 unit exemption, which represents 75% reduction in the educational requirements compared to a new entrant.
But despite all these concessions & a more than adequate timeframe to complete, those who would prefer to ride the gravy train are still whingeing.
“……prefer to ride the gravy train …..” What on earth is this?
Agree fully with you – the credibility of the move towards a ‘profession’ keep getting tarnished with each delay and each watering down- Labour has lost my vote for sure while Liberals may not get it either.
Don’t worry, if they win it won’t ever be legislated. Politicians lie all the time and anyone who believes that someone who voted for the need to have a degree, whose leader is tied to the hip with industry super funds and who has personally acted to make financial planning a dead end career will never actually deliver anything that reduces the number of advisers leaving. This is just a vote grab which they will move away post election.
So Intra Fund Advice is OK without study?
This guy does not like advisors or the advice industry despite what he says. Another ex lawyer with an axe to grind!
Another Union hack with a kickback to receive, more like it.