Consultants to financial services are finding new advice recruits are in a better position to comply with FASEA’s guidance than experienced, decorated financial advisers with postgraduate qualifications
A host of new education requirements, set by the Financial Adviser Standards and Ethics Authority (FASEA) will be imposed on existing and new financial advisers by 2024.
Experienced and degree qualified financial advisers, including those with post-graduate qualifications and professional designations, are finding they don’t comply with conditions which allow access to traditional arrangements. In effect, some of those advisers will need to complete up to eight units of study to remain compliant.
Licensing for Accountants chief executive Kath Bowler believes these advisers “who are clearly quality advisers” are a symptom of an unstable regulatory environment since the 1980s.
“The financial planning space has just changed so rapidly - you may have don’t all the right things with diplomas and advanced study and training, but that’s not recognised under this new guidance,” Ms Bowler said.
“So there’s this crazy situation where you’ve got an experienced practice owner, who has all their specialisations, and they have to do all this extra study. But the graduate planner who has been out for a few months might only have to do one. You’ve got a mismatch.
“The message and intention of getting appropriately qualified advisers in the market is getting lost in all this.”
Separately, FASEA is currently seeking expressions of interest for the design of its adviser exam, which will be compulsory for all advisers regardless of their experience and qualifications. FASEA made the public appeal on Thursday, with a deadline of 15 June. This gives advisers eight calendar days and five full business days to make a submission. Advisers in Queensland and WA have six business days due to the public holiday calendar.
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