Readers of the ifa have referred to Labor’s proposal as both “ridiculous” and “sensible”, but one body has thrown its full support behind the party.
Just hours after the ifa published news of Labor’s intentions to axe the need for experienced advisers to return to university, the Stockbrokers and Financial Advisers Association (SAFAA) applauded the move.
In a statement issued on Thursday (9 December), the SAFAA threw its support behind Labor’s financial services spokesman, Stephen Jones, who at the Association of Independent Financial Professionals’ (AIOFP) annual conference confirmed his party would not require advisers with 10 years of experience and an “unblemished record” to complete a university degree to practise post-2026.
“This is good policy, because it recognises experienced stockbrokers and investment advisers who have longstanding relationships with clients over decades, passed the national exam as well as an unblemished record, and their clients should not be disadvantaged because an adviser does not have a degree,” said Judith Fox, SAFAA chief executive.
“Stockbrokers and investment advisers have been undertaking significant CPD for many, many years, so continuous learning is a key aspect of their professional lives.”
Among the ifa audience, however, views have been mixed.
One reader said: “The education standards needed to increase. I had six qualifications including two degrees. I had to upgrade my studies, which I have now completed, and believe everyone needs to upgrade from the current diploma system.”
Meanwhile another applauded Labor, noting: “This finally is some sensible policy. Adviser numbers are starting to drop dramatically and this will only drive up the costs for retail clients unless adviser departures versus new entrants balance out more evenly going forward.”
Currently, Morrison’s government necessitates all licensed financial advisers obtain a tertiary degree, a hurdle blamed for the mass exodus of advisers from the industry as many experienced practitioners choose to shut up shop over returning to school.
Lot of water to go under the bridge here. Labor has to win, and then follow through on this talking point. Where is a documented policy?? But if it does get through, those that have simply relied on the 10 year grandfathering should have to fully disclose this. Perhaps a different name or a disclaimer. Perhaps some sort of insignia to allow consumers to make an informed choice and easily seek out the professional and motivated advisers.
I’ve studied since the proposed were proposed. I did the right thing instead of complaining. Why do these lazy people have an issue with becoming a profession. Labor is a joke. I’m embarrassed of our industry. Doctors and lawyers and accountants have degrees! It is the norm.
Accountants haven’t always had degrees. In fact some of the best minds in finance and business haven’t had degrees. Degrees don’t teach professionalism and many don’t teach anything but antiquated theory and they test nothing more than the ability to recite readings rather than develop skills and abilities. I’ve lost count of the number of Advisers and Accountants I’ve hired straight out of university over the years, some with Masters Degrees, who don’t have the first clue how to do Accounting or Advising.
What nonsense
Such rubbish. They’ve got us all spooked again, for what? Votes. We are in the midst of a political campaign. This just prolongs the angst, stress and anxiety. But, it is a cracker of a finger pointing opportunity. Think of the number of advisers who may have stood a chance of staying in the profession had this news been offered earlier. Much earlier. The horse has well and truly bolted. Good luck with whoever gets elected.
What a ridiculous statement by the ALP. We have come so far to increase the professionalism of the industry and now this muppet wants to axe the education requirements. Every single adviser, new or old, should have appropriate academic qualifications with a minimum degree standard to practice. I have no doubt the current education requirements will not change and the ALP thought bubble will be thrown out. I don’t care if you have 10 years or more experience, if you don’t have the qualification you should not be practising. Start planning your life post 2026.
Labor and industry funds are one and the same . If you think Labor will be good for financial planning industry then you really can’t see beyond your nose.
Rubbish. I have spent the last year and a half completing my studies. I did the hard yards rather than sitting back and complaining. What a joke that people are still complaining. Labor you are an equal joke , trying to buy votes instead of supporting the industry movement to a profession.
It’s a sensible move. No doubt those that have already invested the time and money into getting ahead of the education requirements are going to feel annoyed, but experience exceeds anything I’ll learn from doing pointless units on stuff I already know. Sadly I think a Labor government will ruin this country so would much prefer to have to do the study than vote them in.
All Accountants with a practising certificate should be able to give Investment Advice and or referalls ,as with GP’S.
Good Idea, I might start lodging tax returns too then
they do already provide investment advice…. accept it’s illegal.
Great Souther once more
Sounds ‘Tree-rrifc’, why stop at investment advice, do it all without appropriate qualifications 🙄
Certainly – as long as every graduate adviser is allowed to provide tax returns and advice with no file notes or real compliance as Accountants do.
Anyone who believes anything ANY major party politician promises today is an utter fool.
That’s something I have learnt the hard way the last 4 years.
Voted Liberal my whole life but could not have been more betrayed by a political party that what the LPN has done to this industry the last 2 years. Then you have Labor who, while state based, have destroyed the livelihoods of millions of small businesses and everyday people the last 12 months (with even more destruction planned) in Victoria, WA and Queensland to unfold. I don’t feel safe in Victoria anymore is how bad it is here now.
Sorry – both major parties have destroyed ALL AND ANY faith I once had in anything a politician says. They only open their mouths to tell another lie so buyer beware trusting them now. Labor will give with one hand but take your family with the other.
Totally agree with you, but its a lie U’m willing to give it a go, for the sake of my clients…
A two tiered system could work. The gold standard for those who jump through the extra degree hurdles and a less premium offering from those who don’t. Advisors with more than ten years experience would no doubt be quite happy with that, as they really don’t need the extra bells and whistles to prove themselves.
At the age of 61 there is no way after more than 30 years experience i should have to go back to school. Those that think otherwise are unreasonable and up themselves ! Sensible labor decision!
It’s not about you as an individual. It is about what is best to help the industry become a profession. There is no slight on you as an adviser or individual. This is just what is needed to take a step to becoming a legitimate profession.
Scott, you’re correct but I do think it now reflects on the individual. Knowing what needs to be done to remove this bad regulation, and Advisers like this guy just do nothing, well that reflects poorly on those advisers that just can’t be bothered.
spot on
This policy is an absolute disgrace. We are back to being labelled as less qualified than hairdressers!
There is no division here ! Simply common sense prevailing. All new entrants still require degree qualification which enhances the professionalism of the industry with the luxury of one on one coaching and support from seasoned advisers.
No degree, does it translate to grad diploma or zero further courses. Be wary, labor will bite the industry elsewhere. This is an election trick.
Well done Stephen Jones.Finally some common sense.
IF what he says is what he does – then all good and well. My well validated concern is what the take or impose in response to this concession.
I wonder how much practical skill and knowledge the reader touting 6 qualifications including 2 degrees actually picked up over those years of academia, compared to the time spent on the job. From 25 years of CPD, various specialisations, diplomas and advanced diplomas I’ve used nothing from any of them in my work with clients that would benefit them or I.
Never Trust a Labor Government… Just look at what our State Labor Government has done and is doing to our state.
A wolf wearing sheep’s clothes is what it is or There will be no carbon tax under a government I lead, either one fits.
Totally agree. Same bird….different wing.
Any Government that replaces a country’s constitution without telling its people or giving the people an opportunity to
vote on it, is as evil and corrupt as you can get. NOTHING Labor ever does is honorable or for this country’s freedom and benefit. Toxic white ants is all these two parties are to Australia’s future now.
And after the last 8 years, why the hell would I trust a Coaltion Government, the party of small business.
If FASEA weren’t so cruel, if they had properly engaged with financial advisers and acted in-line with the Government mandate, we may have had a sensible education regime. One which both raised standards and treated older advisers with compassion and fairness. Instead, we will become a laughing stock again. The focus should be on reducing red-tape and over-compliance. But now it has been diverted onto this issue which is important for a few, but not nearly as important as the regulation strangulation that is the primary source of adviser exits.
I cannot agree more.
what a joke, A Bachelor of Arts in bugger all. A worthless investment for those who are older, have life experience and live and breathe financial planning. Need to draw a line in the sand. Just keep the ongoing training relevant and make CPD points more challenging and which encourages critical thinking, Some much needed common sense would be welcomed.
Financial Planners are now on the political radar – good.
FPA, FPA, FPA – can you get rid of the ethics unit you have to complete if you have completed CFP, have 10 years experience and an unblemished record??. What is the use of CFP?????? Will get rid of my FPA membership as soon as not required for TPB. Waste of money.
What does a stockbroker have to do with financial advice!
I’m completely gobsmacked that, at no point in this debate, has there been ANY acknowledgement that the problem only exists because FASEA failed to adhere to their mandate of giving credit for years of CPD. Had they done so, this issue would be moot………….and it’s not to late to solve the problem!
they followed the recommendations put forward by industry representatives. So why blame them?
I will definitely vote for Labor just because of this!!
and I won’t. 1 each way
It seems I did a Bachelor of Commerce in Financial Planning for no reason. A waste of time and money.
No it wasn’t. You are part of the future.
LOL… So clearly Stephen didn’t feel as though he actually got anything important out of the study, that’s applicable to his job otherwise it being a requirement or not wouldn’t really matter. I suppose though we can agree that being able to check off pointless agenda driven check boxes is important for the future of our profession (Sarcasm).
Well if the only thing you got out of doing so was to meet the compliance regime, I would totally agree.
The additional units I still have to do will do nothing to add to my skills or ability as an adviser so will hold the same opinion. What would have been great was if we could actually do study in areas that would expand our expertise and skills in relevant areas, instead of just being a check box requirement.