Adviser exodus an ‘avoidable scenario’
The large number of advisers indicating they will leave the industry rather than meet the new FASEA standards is a preventable outcome, according to the AFA.
A recent poll of ifa readers found 75 per cent of respondents are looking to exit the industry rather than complete the necessary additional training required of them to meet FASEA’s proposed education standards.
Speaking to ifa about the data, AFA chief executive Phil Kewin said the results “highlight the level of angst and uncertainty that still exists in the adviser community” and the challenges that face the industry.
“We are all committed to raising the level of professionalism and while the bar can’t be set too low the standards need to be pragmatic, relevant and ensure a strong and growing advice profession,” he said.
“Obviously a large exodus from the industry would be a poor outcome for all, however we would like to think that this is an avoidable scenario.”
Mr Kewin said the advice industry will need to work together to ensure the final education standards are appropriate and that advisers required to undertake additional education are able to do so.
“We need to work co-operatively as a financial advice sector to ensure that we get a practical outcome on the education standards and we then assist our members to achieve the required standards by the deadline.”
Individiual advisers will need to consider their own circumstances before deciding on a course of action, Mr Kewin added.
“Advisers should consider their options, however we would strongly recommend that they all consider the best option to achieve the required education standard before they make any decision. There is far too much experience, knowledge and skill that needs to be retained in our profession,” he said.
“This is understandably an important and emotional issue, good advisers need to be retained and Australians deserve affordable quality personal financial advice.”
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