The financial advice industry will have to wait for another round of Government-led consultation before legislation to amend education standards is introduced, the Assistant Treasurer has advised.
Speaking via video link at the inaugural Workplace Super Specialists Australia (WSSA) Conference, Josh Frydenberg said that the Government was close to finalising its approach to education standards, but further consultation was needed.
“I recognise that transitional arrangements will be very important to ensuring we retain experienced advisers in the industry, at a time when they will be most needed to mentor those new, younger advisers entering the industry.
“That is why before legislation is introduced, further consultation will be undertaken to settle key remaining implementation, timing and transition issues,” Mr Frydenberg said.
transitional arrangements will be very important to ensuring we retain experienced advisers in the industry
The Assistant Treasurer did acknowledge that a strong consensus was building around the key recommendations set out by the Parliamentary Joint Committee for Corporations and Financial Services (PJC) in its report, released in January (see: PJC Proposes Significant Restructure of Advice Industry).
“More than 50 submissions have been received in response to the Government’s consultation paper on this issue,” Mr Frydenberg said. “The submissions showed that there is near unanimous agreement that reform is required to maintain public confidence in the financial services industry, and that new – higher – standards are needed.
“These reforms will represent a substantial change to the current regulatory environment for financial advisers, will deliver significant benefits to consumers, and assist in maintaining trust and confidence in the financial system. It is therefore important to get them right.”
