A major industry group which represents over 90 per cent of financial advisers in Australia has released its submission to government this week.
The Joint Associations Working Group (JAWG) — made up of key associations including the FPA, AFA, FSC, TAA and CA ANZ — has supported proposed changes to the current education framework and the proposal for an experienced pathway for advisers in an attempt to halt declining adviser numbers.
Currently, existing financial advisers with no degree must have an approved qualification by 1 January 2026.
The JAWG recommended that advisers can access this pathway if they have passed the exam, can demonstrate relevant experience (10 years between January 2004 to January 2022) and maintain a clean record.
“The JAWG recommends that the experience pathway include a sunset clause which ends 1 January 2032. Any adviser who wishes to continue to practice post this date would need to meet the education requirements for existing advisers,” the group said in its submission.
“To help address the shortage of advisers, we need to help more students choose financial advice as a career, make a career change to become financial advisers a viable option through improved flexibility in education pathways, and make it easier for highly competent individuals to continue in their chosen profession.”
The JAWG also recommended that “holistic review” of the education pathways be undertaken which would include recognition of prior learning, quality education and experience, while units and learning outcomes for each unit should be set and approved by a “recognised independent authority”.
Following this, the association said existing advisers and career changers should then be allowed to choose whether to complete the current FASEA pathway or the new revised experience.
The submission comes after Shadow Minister for Financial Services, Stuart Robert, called out the financial advice industry for failing to correctly address education standards for some time during an appearance on a recent Momentum Media podcast.
“So I’ve been doing this journey for a long time and the industry — the advice industry — couldn’t get itself together on education. Couldn’t agree,” he said.
“Hence, why FASEA was born. Now, FASEA is gone, thank goodness. Because where it landed, I thought was quite poor.
“I’d like to see industry own its own education requirements, come together like the broking industry did, where the players all got together and all agreed.”
To listen to the full podcast with Mr Robert, click here.
Meanwhile in its own submission released publicly last week, the Association of Independently Owned Financial Professionals (AIOFP) said it “supports abandonment” of the financial adviser exam.
Can someone explain to me why there should be a grandfathering clause?
If a person with 10+ yrs experience (ie 2016 to 2026) doesnt need to complete the study, then why after 20 years experience (ie 2016 to 2036) should they need to do the study?!?
No doubt that the FPA will jump in and claim credit no matter what the outcome is
The FPA has been captured by small minded bureaucrats using it to push their own agendas and further their own careers.
So will compensation be paid to all the experienced planners that took time to do the degree which many have done because they were told they had no choice but to have one by 2026? Refund of money paid, hourly rate for time taken – not to mention the stress and anxiety all of this has caused. I would expected a large sum to be reimbursed to me for changing your mind? I don’t disagree with the proposal but I do take issue with us begging idiots to change the rules Years and Years ago. So how much do I get back???????
Would have thought you should not get back anything. You now have a degree and will make a fortune going forward so don’t worry about consider it money well spent !!!!!!!!!!!!!
Not money spent but money Invested
When you are late 50’s and 60’s – it is not going to make a fortune. I have a degree in FP. If I had to do now I’d retire. A degree does not make you money FYI – I’ve known many failed educated planners.
nailed it. I have several decades of experience, hold degrees and postgraduate degrees in finance. I would like a refund also.
No, but I believe Industry Super gained a lot of FUM and members and competition from Retail Funds and Financial Planner switching funds has decreased – heaps. Follow the money?
Once again a call for more grandfathering!!!! When will these industry groups wake up to how unprofessional they make the industry look with all their claims for protection of “rusty wheels”. We will never be accepted as a truely professional industry until all consumers can assured that ANY adviser that they talk to has qualifications consistent with the WHOLE industry. Time the chair does not in anyway ensure competency and currency!
Jen, I disagree,they are not calling for ‘more’ grandfathering. Labor and Stephen Jones largely campaigned about grandfathering in the lead up to the election. The coaltion are a disgrace, yet I’ve been a Liberal voter since 18. Whilst I agree the professional education standards must be lifted there is a need to balance the dilution of planners in this transition period. I’m 65, have an unblemished record, passed exam 1st sitting and passed ethics course (with an assignment distinction). I can’t see the merit of being degree qualified, yet my long-term experience, skill and knowledge would most likely beat any post provisional advice provider..
I don’t think you are actually disagreeing because your actions show that that you have done the required extra exams and study. The big plus is that you also have the experience. My objection is not against professional such as yourself. My issue is with the advisers who think that tine in the chair is all that is required and have protested against doing the extra justified work. The industry bodies should be working to support, invest in and promote the people like yourself rather than lobbying to protect the others.
“Dilution of planners” is simply a transitional period as the industry advances itself.
mortified and bewildered that free kicks & leniency are given over and over again to those too lasy to step up and complete the education. it’s not easy for anyone to complete education, yet the true professionals are simply geting it done
I think you’ll find Jen many of us who have ”Time in the Chair” are regarded as professionals by all we deal with. Professionalism isn’t a function of credentialism, its hard earnt by consistent behaviours & performance. Experience & ethical behaviour should’ve been a measure of the right to practice from the start of this sorry fiasco, rather than a blind reliance on credentials. Its heartening to see many have woken up to this fact & are seeking to readdress the wrongs. I would’ve thought all professional advisers would welcome the retention of knowledge, experience, & wisdom, some ”rusty wheels” can provide & pass on to new entrants to our profession.
Didn’t Senator Jones say before the election the first thing he would change is the educational qualifications required for all experienced planners. Not surprising there has been no mention from the Senator about this issue only changing the disclosure laws of industry super funds and their donation disclosure requirements.
Where did you see that change of disclosure for industry funds, I’d be quite interested to have a look at that?