New data has suggested that as many as 3,166 advisers on the Financial Advisers Register (FAR) do not have a degree and would benefit from the experience pathway.
Namely, according to Wealth Data, there are 8,239 advisers on the FAR that commenced prior to 1 January 2009, of which only 5,073 have a degree of some description.
While advisers currently have until 2026 to meet the approved degree or bridging requirements, it has been suggested that many are eagerly awaiting Financial Services Minister Stephen Jones’ decision on the government’s commitment to removing tertiary education requirements for those who pass the exam, have 10 years of experience between 1 January 2004 and 1 January 2019, and a clean practice record.
Dubbed the experience pathway, the proposal would equate the worth of a degree with 10-plus years of experience in the industry.
On Thursday, Wealth Data reported that the number of those depending on Minister Jones’ announcement sits at approximately 3,166 but noted that it is uncertain how many advisers in that category may be currently pursuing a degree.
“But for those who have not commenced, time is running out,” cautioned Colin Williams, founder of Wealth Data.
“An approved degree generally requires three years of study — so it would be very difficult to complete a degree by the end of 2025 and work at the same time.”
Earlier this week, Adviser Ratings’ Financial Advice Landscape Report suggested that 10 per cent of advisers intend to leave the industry, while another 12 per cent are uncertain about their future.
“While it’s unlikely that every adviser who is unsure will depart, our analysis indicates the future of education standards will dictate the path for some advisers,” Adviser Ratings said.
“We’re told the wait for certainty about what will happen with education requirements — specifically, experience recognition — is creating anxiety among advisers,” the firm added.
In December last year, Mr Jones said that the government would begin consulting on this topic early this year and would have provisions ready for legislation in the first half.
“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,” the Minister said at the time.
However, an update has yet to be provided regarding the government’s plans.
“An approved degree generally requires 3 years of study – so it would be very difficult to complete a degree by the end of 2025 and work at the same time”.
What utter nonsense.
ANYONE currently in our industry who is advising will be able to benefit from previous studies like DFP, ADFP & CFP and have to do only a handful of subjects, which they presumably should be able to do with their eyes closed if they in deed have experience.
Watering down these requirements, which advisers will have had nearly a decade to complete, is a joke.
Please note that this proposed legislation forms part of the ALP National Executive Policy Agenda devised BEFORE the last election and the Minister has already said [late last year] that it will go before Parliament in mid 2023. With the Opposition agreeing with it pre and now post election [and we are soon to be less than 2 years from the next election] it is highly unlikely it will not get passed by both houses in record time!
Time is running out…….none of these people intend to start a degree