A month after Minister Mulino announced a consultation on education reform for financial advice, the Licensee Leadership Forum (LLF) has backed the proposals, calling on the government to “legislate the new framework as soon as practicable”.
The LLF, which comprises more than 70 licensees representing over 5,000 authorised representatives, said they “strongly support the Government’s proposed reforms to adviser education pathways”.
“These reforms are both necessary and timely to rebuild a sustainable, accessible and high-quality advice profession,” the letter said.
“We support the proposed qualifications pathway, including a degree in any discipline, flexible financial concepts study, four accredited advice subjects, and the continued role of the professional year, exam and CPD.
“This framework appropriately balances accessibility with rigour and reflects how professional capability is developed in practice.”
The current system is a major factor in the declining number of advisers operating in Australia, having constrained new entrant pathways, the LLF said.
“The proposed reforms will materially improve accessibility by reducing unnecessary rigidity, recognising prior learning, and enabling faster entry into supervised practice. This is critical to improving consumer access to affordable, high-quality advice,” it said.
“We believe the proposed education standards will make a meaningful impact by restoring a practical, modern entry pathway into the profession. Over time, this will help rebuild adviser numbers, improve the sustainability of advice businesses, and strengthen confidence in the advice profession.
“In our view, the framework better reflects how adviser competence is built: through a combination of relevant study, structured supervised practice, assessment and ongoing professional development.”
Beyond the benefit to prospective advisers, the group said it would also improve outcomes for consumers through greater access to advice and “enabling more Australians to engage an adviser earlier, including those with simpler needs who are currently priced out or unable to find an adviser”.
“A larger, well-supported advice profession – combined with relevant education standards and licensee oversight – helps ensure advice is delivered by practitioners who are competent, supervised, and accountable,” it said.
While there has been some concern that opening up the education pathway to a broader array of degrees, the LLF argued the reforms would not “dilute standards”.
“The professional year, adviser exam, continuing professional development and existing licensee obligations will continue to provide strong safeguards to ensure advisers are appropriately prepared before providing advice,” it said.
“Licensees also support professional practice through supervision, guidance and ongoing capability development that ultimately assists consumers access advice.
“The LLF fully supports this reform and stands ready to assist the government with its implementation.
“This includes engaging constructively through consultation, supporting transition planning, and publicly advocating for the reforms. Membership of the LLF covers the full spectrum of advice offerings and propositions, and while individual members may lodge separate submissions, this letter reflects our collective support.”
Citing the “urgency” of the adviser supply issue, the licensee group urged the government to act quickly in order to progress the legislation.
“Timely implementation will provide certainty to industry, education providers and prospective advisers. This reform is a critical step in rebuilding the advice profession, and it has strong industry support,” it said.
“We look forward to working with you to ensure its successful implementation.”
In March, Mulino explained that under the proposed reforms, prospective advisers would be required to hold a bachelor’s degree or higher, however it would no longer need to be a prescribed financial advice degree.
“They will also need to meet minimum study requirements in relevant areas such as finance, economics or accounting, along with completing mandatory financial advice subjects covering ethics, legal and regulatory obligations, consumer behaviour and financial advice fundamentals,” Mulino added.
According to the minister, the new policy would complement the work already underway on managed investment schemes and the government’s “broader work on consumer protection in the superannuation sector, which we will begin consulting on soon”.
“Alongside consumers, Australians seeking to work in financial services will benefit by streamlining entry into the industry, while retaining the important role of tertiary education,” he said.
“These reforms ensure continuing robust professional standards for advisers, including requirements for completing a professional year, passing the financial adviser exam and maintaining continuing professional development.”
