With older advisers less likely to head back to school in time for the introduction of the new education standards, a different licensing regime should be created to allow them to retire at the right time, suggests Connect Financial Service Brokers chief executive Paul Tynan.
In a statement, Mr Tynan said there is a low likelihood that mature-aged advisers will enrol in university to complete degree qualifications.
"Rather than having this knowledge and experience lost to the industry and the next generation of advice practitioners, a new licensing regime could be created where the older adviser could move into a relationship adviser role and still receive brokage from their client register as they transition to retirement," he said.
Mr Tynan added that experienced advisers are known to have soft skills which, along with technical skills, are an important part of being an adviser.
"Modern education does not teach the interpersonal engagement skills that the more experienced advisers have in abundance. The provision of quality advice will continue to be a P2P business and the 'soft skills' [remain] essential for long-term business/practice success," he said.
"How to create a bridge between technical and soft skills advice is an issue that needs to be addressed as industry noise gets louder about there being no alignment between job skills and education."
Nevertheless, Mr Tynan still believes the industry needs a base level of education standards to be put in place, as well as continuing education.
"Although an adviser may have attained a CFP qualification, this does not mean that they have the capacity to give advice or able to manage a financial planning SME business," he said.
"Education, personal and professional development is a continuous process and no one can ever stop learning in this universal world of knowledge."
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 18 Aug 2017ASIC permanently bans former AMP adviserBy Staff Reporter
- 18 Aug 2017IRESS announces first half resultsBy Jessica Yun
- 18 Aug 2017Banks the key to closing advice gap, Tria saysBy Larissa Waterson
- 18 Aug 2017Adviser ethics certification launchedBy Staff Reporter
- 18 Aug 2017Banks evade FOFA, industry funds claimBy Larissa Waterson
- 16 Aug 2017UBS appoints head of wholesale distributionBy Staff Reporter
- view all