Speaking at the Association of Independently Owned Financial Professionals’ (AIOFP) annual conference, Financial Services Minister Stephen Jones said that the government is preparing to begin consulting on this topic early next year.
“I can advise you today that I am confident that we will have provisions ready for legislation in the first half of next year,” Mr Jones said.
“Some of you may ask why the commitment for relief for experienced financial advisers or even changing the qualification framework for qualified financial advisers hasn’t already been done, well we can’t just do that with a stroke of a pen,” he continued.
Moreover, Mr Jones confirmed that the government would provide “consultation documents for the sector on those issues in the early months of next year”.
“It would be my hope that we’ve got legislation in the first half of next year through to parliament so those things can be settled.”
Mr Jones first announced the experience pathway last year at the AIOFP conference. At the time, he said that an adviser’s 10-plus years of experience in the industry would be worth “at least a degree”.
The Liberal government then released its Education Standards for Financial Advisers policy paper, proposing a pathway that streamlines the minimum education requirements and recognises on-the-job experience for individuals with 10 or more years of full-time experience.
Namely, under its proposal which mirrored that proposed by Mr Jones, individuals who have 10 or more years of full-time experience as a financial adviser in the last 12 years would only need to complete a tertiary-level unit of the Code of Ethics in order to continue providing financial advice.
The pathway also asks for the eligible individuals to have a “clean record” meaning no sanctions from the Financial Services and Credit Panel, excluding warnings.
Since Labor assumed government earlier this year, advisers have been eager to see progress on establishing the pathway. Their impatience was mainly stirred by Mr Jones who himself said in May that Labor “should be able to” enact the experience pathway “pretty quickly”.
“Sworn in, consultation process, let’s get this done,” he said at the time. “We want to make sure it’s in place and up and running.”
Since then, Mr Jones’ tone has become less enthusiastic, with the Minister noting on Friday that “it does actually require legislation”.
FSCP has not been referred or heard a single matter since it commenced on 1 Jan 2022. Not because there are no matters. Usual ASIC dragging their feet. Is hardly a realistic measure to say someone is a good operator and deserving of a free pass. Get reall! All it will do is water down all the good work that has been done.
That will do me. 10 years experience is worth a degree. What a joke.
We all look around at our peers, and regardless of ethical attitude, or being good people, the reality is uneducated. Many got their DFP in a corn flakes box.
Such a cop out on how far things have come in last four years…..
We will never be a profession.
The point of the current requirements is to weed out the poor performers or those not dedicated. This now reads as ‘if you havent been busted yet you can stay in the profession’ given basically no AFSLs voluntarily report anything these days (read the IFA articles if you dont believe me) everyones going to have clean records. This + QAR is guaranteeing another Royal Commission, start preparing testimonies now or practice fainting on the stand – we will be back where we started due to a couple of poor performers who dont want to study.
Sounds good, although I would like to see a broader window regarding the “years of experience”. 10 years over the last 12 is a little tight, as some advisers may have worked in management or paraplanning roles over the years throughout their career. A 15 year lookback window may be more suitable.
I can see the Green’s voting for this one. I’m still looking to exit as I don’t trust a politician.
We’ll pull the pin toward end of 2025 after almost 44 blemish free years in the industry (touch wood 🙂 ). This decision is made for us. I’d certainly like to know how many others are doing the same
How is the decision “made for you” you have years to upskill to the required qualifications. Please get on board and help bring the industry to a profession.
I’d say a massive ‘%’…
Afer 35 years in the industry, and fully qualified to continue beyond 2026 – I’m hoping to be out by June 30 next year.
Enjoy retirement with no more fears vs Stay on until something else changes…
Easy choice really..
Agreed. The war is over. It was a while back.
I did in Dec’21 for the same reasons after 35 years. We are definitely not the only ones for these reasons. Politicians and consumer ‘interest groups’ should be abjectly ashamed of themselves for what they’ve done to the industry, advisers and importantly clients. Sadly, they’ll ultimately answer to nobody over this. I can’t see it being a real ‘main’ reason for a party losing at the poles, sadly, even though it is so important to us.
What we need is a Royal Commission into the damage politicians have done to the Australian public by over-regulating financial advice. Let’s see some blame heaped on the stupid politicians responsible on both sides of politics.
hear, hear!
Just scrap the Ethics course too. We do enough units via CPD anyway.
I’ve seen how some advisers meet their CPD requirements and there’s no wonder there’s been a crackdown. Yes, doing an Ethics course doesn’t make someone ethical. However, gone are the days when a DFP and 40 annual CPD is enough to give advice and anyone fighting against that doesn’t understand the journey to professionalism. I feel sorry for all the advisers who have gone and invested time, money and effort to reach the minimum requirements, only to be told that it may no longer be necessary. It’s a credit to them though and I only hope these advisers prosper. It’s refreshing to be a part of the new generation of professional advisers.
I jumped in and did the full Grad Dip and think that in compensation for those that did it CPD hours should be reduced to 30 per annum and 20 per annum for those that have finished the masters.
If you don’t think the Ethic module is necessary, then it really does need to be completed. Anyone that has completed education in the recent past will know that it is a good process to go through and is never a waste of time.
The posturing is because some people are change resistant and think they know it all. Can’t be improved.
When you have done ethics in a Nursing Degree and a Masters of Financial Planning but then you still have to do it despite passing both with a distinction, pardon me for saying so, it sounds like academic revenue raising.
Aside from the astronomical $2,500 cost of doing the course – I’d say I benefitted enormously in my understanding of where we need to get to to self-regulate as a profession and leave the “industry tag’ behind.
On the contrary Anon, the ethics course is an absolute waste of time.
“gone are the days when a DFP and 40 annual CPD is enough to give advice…”
Sorry, but have you heard of the QAR?
At age 65, I fit the ‘experienced pathway’ cohort. I successfully passed FASEA Exam (first attempt) and ETHICS unit. Now, just get out of the way and let me get on with looking after my clients. It’s hard enough with volatility, inflation, interest rate hikes and the tech wreck to try and ‘calm the farm’ with my trusting clients. Don’t get me started on QAR.
If you let the fox run the hen house by giving banks, super funds direct consumer advice we’ll be revisiting another Royal Commission soon enough. You want to reduce insurance premiums, make it worthwhile for advisers to recommend it. Change commission to 90% upfront and 15% ongoing and no annual Commission Disclosure Statement. The current structure: 60% upfront and an 2 year claw-back makes the effort and risk unsustainable. They stuffed it up in the UK and have reversed their position on life insurance commissions, follow their lead, its a no-brainer,
I am of the opinion that the Liberal Government and previous financial services minister Hume did not at all lead the way for experienced advisers. I believe that it was Stephen Jones that initiated the proposal and was warmly received by the experienced financial advisers. The liberal government was completely adrift in this sector. The ASIC exams results with pass rates around 50% is a further example of the liberals not fit for purpose legislation.
Don’t make it tooooo easy pl. Can’t wait to get out!
10 years service from what date…. its a simple question to answer.
10 years from date of legislation or 10 years as of 01/01/2026 when legislation become law. There are loads of advisers in limbo waiting to see if study is required
I’m pretty sure I read somewhere the proposal is 10 out of 12yrs as of Jan 2026 so I guess that puts it from Jan 2014.
Just do the study, you’ve had long enough
Why, after the education requirements have been known for so long, are there still loads of advisers in limbo waiting to see if study is required?
I’m 58 with over 30 years experience and an unblemished record, and I just completed the GradDip. Yes, it was a nuisance, but very doable. Just get it done and move forward. ?