In a statement issued yesterday, National Seniors chief executive Michael O’Neill said that while he is pleased the PJC has recommended raising educational standards, these tougher standards are needed more immediately than set out in the report.
“Too many older people have trusted financial advisers who are ill-equipped to steer their retirement funds safely towards reasonable returns,” Mr O’Neill said.
“We don’t want to see another Commonwealth Bank scandal. People want to know that their advisers are trustworthy and capable now – not in four years’ time.”
A greater “sense of urgency” is required in order to restore public confidence in the financial advice industry, Mr O’Neill said, adding that the 2019 deadline suggested by the PJC is not conducive to the restoration task.
The National Seniors lobby group is spot on. If a financial adviser doesn’t have a relevant university degree (or industry Master of Financial Planning) & experience, she shouldn’t be allowed to give advice during the transition period. Instead, they should work along side with one who does, whilst earning her university qualifications, etc. This way, the client is being put first as it should be.
Absolutely correct. There must be an immediate requirement for any “new” appointee of an AFS licensee (responsible manager, employed adviser or authorised representative) to hold a relevant university degree plus appropriate industry qualifications. For all existing practitioners (employed or otherwise) a rigorous “recognition of prior learning and experience” alternative where applicants are individually assessed for exemption from degree qualification and if not exempt required to enrol immediately and make reasonable annual progress towards degree qualification by 31 December 2019 at latest.