January 29, 2019
Are you committed to completing one of the FASEA Education Pathways?
- No (44%)
- Yes (34%)
- Not sure yet (21%)
The outcome of our latest poll suggests the financial advice sector may witness a significant exodus of advisers in the countdown to the implementation of FASEA’s education requirements (see: FASEA Finalises Education Pathways…).
As you can see from the poll response, almost two in three advisers have indicated they are either not committed to completing one of FASEA’s education pathways (43%) or aren’t sure (21%). Only 36% of our predominantly adviser audience has indicated their commitment to one of FASEA’s education pathway options.
This result raises more questions than it answers – and we’re inclined to conclude that a gloomy fog of uncertainty is presently shrouding the thoughts of a serious proportion of advisers and advice businesses in this country when it comes to their vision for the future of their business and for their continued livelihood. We sense there’s ‘trouble at mill’ for many dedicated and passionate advisers, who simply can’t see a light at the end of the tunnel at the moment.
What does this poll result mean for the advice sector and for the consumer – and what do FASEA’s education pathway options mean for you and for your business?
Understandably, the comments we’ve received have been made by those who are challenged by FASEA’s final education pathways options, where the consequences – unintended or otherwise, according to these comments include:
- Exacerbation of the existing underinsurance dilemma
- A loss of jobs in the advice and broader financial services sector
- The potential collapse of the value of advice businesses
- The financial impost in order to eventually achieve FASEA accreditation
- The additional time impost that will be applied to each adviser and advice business – some more than others
Additional comments that appear to capture the mood of the meeting in what is effectively now a transition period to a new advice environment include:
…It amazes me that I have met the requirements as requested all the way along and have gained invaluable experience for my clients only to be told the rules are changing
“So on 31 December 2023 I’ll be fine to talk to someone about their life insurance. It will be a similar conversation to those I will have had countless times over the preceding 44 years. But if I continue the conversation the next day I’ll be (I presume) breaking the law and liable to pay a substantial fine or perhaps even serve jail time? But the 23 year-old who’s never actually spoken to a client (but has lots of book learning about unrelated subjects) is ok to go ahead and give advice?”
“Having started my financial career as an investment banker in 1985, then as a stock broker from 1998 and a financial planner since 2001, that all my experience is only worth 2 Credits. It amazes me that I have met the requirements as requested all the way along and have gained invaluable experience for my clients only to be told the rules are changing and you are out of a job unless you spend a huge amount of hours studying and doing exams that have been written by educators who have little or no real world experience…”
The future is uncertain for many advisers and their businesses. We’ll continue to report further developments as they unfold, as our poll remains open for another week if you’d like to add your voice to this issue…