The Association of Financial Advisers (AFA) has raised some key concerns with a recent government proposal on changes to the education and training standard for financial advisers.
In the Education Standards for Financial Advisers policy paper released in late December, the government proposed a pathway – coined the “experience pathway” – that streamlines the minimum education requirements and recognises on-the-job experience for individuals with 10 or more years of full-time experience.
Existing financial advisers or new entrants who do not meet the requirements under the “experience pathway” would, however, need to complete a bachelor’s degree or higher with at least eight units in a related field of study in any combination, known as the “qualification pathway”.
“Whilst the greater flexibility, in terms of the eligibility of courses undertaken, will be beneficial, it will impact the level of support for the FASEA approved undergraduate degrees,” the AFA said this week.
“We are also concerned that someone could complete study as proposed by this pathway, without having done any specific financial planning subjects, which could make it much more difficult to employ them in an advice practice. All of these issues need to be considered as part of this consultation process.
“The pathway available for new advisers is particularly important in ensuring that there is a steady flow of new entrants into the profession, and we can rebuild after the recent loss of so many experienced advisers. We need to consider both supply and demand factors.”
The AFA is currently seeking member feedback before submitting its response to the government.
Submissions on the government proposal can be submitted now and close on 1 February 2022.
Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.
Neil is also the host of the ifa show podcast.
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