In a recent submission to the government, the Stockbrokers and Financial Advisers Association (SAFAA) alerted to an “accelerated exodus” from the stockbroking and investment advice industry of experienced, retail advisers as a consequence of FASEA’s narrow scope of approved qualifications coupled with an “irrelevant” mandatory exam.
SAFAA’s CEO, Judith Fox, warned that FASEA’s approach is rapidly shrinking the pool of available advisers and would ultimately disenfranchise retail investors.
“FASEA treats all financial advisers as financial planners, notwithstanding the differences between the financial planning advice model where advice is provided on all aspects of a client’s financial circumstances and stockbrokers and investment advisers who provide scaled advice on a client’s investment and shares. They are different forms of advice serving different client needs,” Ms Fox said.
She also drew attention to the education barrier many of SAFAA’s members face, with top-tier talent with degrees in commerce, economics, finance and business required to undertake “unrelated financial planning diplomas” in order to continue to provide investment advice.
Referencing a recent survey, Ms Fox noted that “graduates are voting with their feet”.
“Top graduate talent is being deterred from entering the stockbroking and investment advice profession. Our industry attracts the brightest and the best, but a graduate with a finance, economics, commerce or business degree will also have to complete a 24-subject financial planning degree before they can enter the industry,” Ms Fox explained.
“This will result in detriment to retail investors, who will increasingly be left with the choice of either DIY trading online with no advice or advice from a financial planner who has minimal direct expertise in listed investments and markets.”
With the winding up of FASEA and the transfer of standard setting to the Treasury under ministerial authority, SAFAA noted it hopes that the government will see the need to ensure that education qualifications must be suited to the financial advice provided.
“The degrees sought by the stockbroking and investment advice industry are ones in commerce, business, economics and finance. Approval of these degrees will ensure that retail investors will continue to have access to experienced stockbrokers and investment advisers,” Ms Fox concluded.
SAFAA = little relevance. When will all these “stockbroker” types realise they have to act in their clients best interests instead of waking up each morning figuring out how to write $4k bro each day to hit their targets. Any sorry Judith, but this exam is doing what it is designed to do – which is to weed out all the “advisers / product pushers’ that simply are not up to sitting in front of clients. How do any of these stockbrokers prove they are putting their clients in better position ?- do they compare their performance v relevant benchmarks? – I think not !!
1. How about FASEA, proving they have left the industry and the public in a better position, slogans & generalisations just don’t cut it
1A. what is fasea’s benchmark ?
2. the average individual investor one talks to at bbq’s have no idea of the adviser cliff approaching at great speed
3. once the investing pubic catch on, all those associated with fasea will have bounties on their heads
4. its time fasea come out and admit a massive stuff up of an implementation of policy reform
“but a graduate with a finance, economics, commerce or business degree will also have to complete a 24-subject financial planning degree before they can enter the industry”
Nope, that’s wrong. Do better SAFAA, you don’t even understand the rules. No wonder you’re always complaining.
An approved Graduate Diploma of 8 subjects is satisfactory for new Advisers.
and costing new advisors an extra $16,000.
Did I wake up and it’s 2017? Yes FASEA was hijacked by Griffith Uni academics who determined a Degree means a Bachelor of Financial Planning from only two Uni’s in Australia…. ignoring all of those Economics, Business, Accountancy, Finance Graduates….. but it’s 2021 and not 2017 and they should have stood up for their members then. These associations especially the FPA essentially saw FASEA as a money making opportunity and all stayed silent. Secondly, take a look at Morgans website and they clearly advertise the provide Financial Planning advice, retirement planning, and offer a review of your super fund. Stockbrokers don’t even call themselves Stockbrokers.
This sounds “too logical and reasonable” for the clowns in Canberra to understand……
So they’ve just realised this now have they? Us brokers have been saying it for the last 2 years but nobody cared. Thank god I somehow got through it. If I was reliant on these clowns I’d be toast.
so are you a Financial Planner or Stockbroker? Are you one of these “stockbrokers” that mislead people by advertising you provide Financial Advice or like Morgans “retirement planning” and you’re on here having a FASEA moan? I would question the ethics of any Stockbroker that walks into the office with advertising such “review your super, provide income, retirement planning” and come on here and want a FASEA exemption. $20- buck says you don[‘t even call yourself “Stockbroker” and the firm you work has been renamed.