Advisers Waiting for More Clarity on New Education Requirements

This is my status leading into the new minimum Professional Standards regime:

  • I expect I'll need to achieve additional professional/tertiary qualifications to meet the new standards (38%)
  • I still have no idea what I'll be required to do! (36%)
  • I'm degree qualified but expect I'll need to undertake bridging courses (19%)
  • I'm qualified in a relevant degree and am confident I will already meet the new minimum standards (7%)

Our latest poll results suggest a lot of advisers remain uncertain about what additional studies they’ll need to undertake to comply with the new minimum education standards, while very few advisers believe they’re already good to go.

As we go to print, 41% of those taking our poll are unclear as to what additional studies they’ll need to do to comply with the new standards. This is understandable because the FASEA Board has yet to release the details of what it believes will be fair transition arrangements for existing advisers who hold an array of different degrees (both relevant and general), diplomas, certificates and professional qualifications.

Meanwhile, 36% of our poll respondents have said they think they’ll need to achieve additional professional/tetiary qualifications to meet the new standards and 18% believe they will need bridging courses. Only 5% think they are already qualified under the new arrangements.

Advisers attending the National AFA Connect Tour over the last two weeks have been encouraged to avoid making any decisions about their future in the industry until the final transition arrangements have been released.

…the equivalent of 9 months full time study is too much…

Until then, some of the comments we’ve received tend to reflect a range of issues associated with the new professional standards, including frustration and some unintended consequences. A selection of these comments includes:

“Overall and long term I believe this is a good change for the industry, but they haven’t gone about it in the best way.”

“A great opportunity for young advisers buying in but not only are older advisers going to be forced to retire earlier than expected, the value of their businesses when they are forced to retire in 2024 may halve!”

“I know of many close to my tender age of 58 saying why bother and will exit the industry. I want to stay as I enjoy what I do but the equivalent of 9 months full time study is too much…”

Our poll remains open for another week and wewelcome your further thoughts on how the new minimum professional and educational standards will impact you and your business …as far as you can tell!

 

 

  • NobbyK

    May as well join the young kids who get all their questions answered just being in Facebook groups!

  • alistsir

    Wow. This industry sure is wacky. So what has brought this about. As an oldie in this industry going back 35 years, I have complied with all educational requirements since inception. Promoted by either the AFA ( LUA in past ) via its FChFP, the FPA ( IAFP in past ) and CFP, along with dealer presentation, industry requirements imposed by ASIC 9 NCSC in past ), while also holding and maintaining a tax agents licence and associated qualifications thereon. So the verdict it seems that I need to do a bridging course. Serious ? The nitwits coming up with this new thought bubble, will impose more restrictions from an educational viewpoint and in the process lose many in the business who are running businesses, employing people, compromising their business values and confusing all and sundry to achieve what….higher standards for the industry…oh yes…revenue for the education sector. Our industry is responsible for ensuring clients do not lose their homes because of death or disability. Our industry is responsible for ensuring retirees can look forward to a lifetime of comfort in their retirement years. My clients at most receive a partial pension and at worst have no pension. WHy..becuase over these years, they have received sound advice to get them on the right path and now they have the benefits. They understand, yes we do get paid either by commission or fees. They are not pushed into anything or sold something that is not in their interest. So, the solution is simple. Let us do what is in the interest of the client and remove those in this industry that do the wrong thing. Edcuation is also re-enforced via CPD points. The industry runs many fuctions to assist this cause. A new education body, a new course, a degree is good. But then to ignore and hurt those that have dedicated themselves to this industry and to threathen thier livielihoods is wrong. Transition this industry over time. The use of a sledgehammer to smash an egg syndrome is not only dangerous but would undermine all those that matter in this conversation by taking good advisers away. These are the consumer. Remeber them. !!!

  • emkay

    This industry is being deliberately dismantled. The FSC, ASIC, union funds, Govt all working together to ensure small business will be sold, people become unemployed, retirement plans desecrated. And to what end? How will the consumer be better off if I have a degree? So while I wait for the actual requirements for this brain fart education fiasco I am also planning my exit strategy 10 years earlier than I anticipated.

    • Squeaky_1

      I’m out with you emkay! Sickens me to watch what the previously ‘respected ones’ in this industry are doing to us all.