FASEA Extension Poll Results

Will the proposed FASEA extensions have a positive impact on your plans for the future of your advice business?

  • Yes (53%)
  • No (36%)
  • Not sure (10%)

Our latest poll results suggest the extension of the FASEA exam and qualifications deadlines appear to have been welcomed by many advisers.

At the same time, though, the strongest messages coming from this debate remain from those opposed to elements of the underlying philosophies contained within the FASEA requirements themselves.

Not least among the arguments expressed by advisers in this debate is the proposition that risk-only and risk-focussed advisers must undertake the same exam and course work required of all authorised representatives in future. One argument, underpinned by a logical premise, is that risk-only and/or risk-focussed advisers should have the opportunity to deliver their advice proposition under a limited license.

This more limited license – and the qualifying requirements to achieve it – would allow a life insurance advice service to be delivered to consumers but preclude the adviser from delivering broader or more holistic advice, which is what many risk advisers have done for their entire career, and a proposition to which they continue to aspire.

Under this focus, some of the comments from advisers to this poll debate so far include:

“If they don’t stop and re work this total FAESA and LIF fiasco the aftermath will resemble a train wreck.”

“As a 30+ year risky it is not about timelines it is about content. Tackling my mandatory CPD points …I can find little to nothing about ‘insurance’, which is all I do…”

“FASEA is of NO relevance to specialist risk writers and our 20, 30 and 40 year experienced risk advisers should be recognised for just that – EXPERIENCE! It trumps any degree, any day of the week.”

“The Australian public will be impacted negatively as a result of what the Government and the regulators are doing, though this is an indirect impact.”

…The Retail Life Insurance Industry has started to decline and it will decline rapidly upon thousands of experienced risk advisers exiting

“The Retail Life Insurance Industry has started to decline and it will decline rapidly upon thousands of experienced risk advisers exiting due to this insane FASEA restriction of trade.”

The way to stop falling off the cliff …is to change direction and this change must be to scrap FASEA for experienced risk advisers.”

To what extent do you agree with these comments form established risk advisers? Is theirs the generation that will have to bear on its shoulders the weight of the changes brought about by the actions of others?

Is there another solution for risk advisers that will allow them to continue delivering the services they have provided over many years, while still re-building trust and confidence in the life insurance and advice sectors?

Our poll remains open for another week ans we will welcome your thoughts…

  • Daryl La’ Brooy

    to all the advisers who believe these changes are unfair I say visit your local Federal member of Parliament and put your views to them and ask them to support you. It’s pointless venting your spleen on this and other forums it isn’t going to change anything. Unless political action is taken nothing will happen which is why the unions are thick with the Labor Party so their members are not forgotten!

  • PS

    Above article contains some of my earlier observations. The FASEA exam delay to end of 2021, allows mature aged risk only writers some extra time to continue to fight the good [and extremely logical] fight against FASEA. The most sensible and beneficial outcome [for the CONSUMER] is to have a limited license for risk only advisers.

    Does a GI broker need to be trained on how to assist their business clients to secure a loan? No! Does a Mortgage Broker need to know how to arrange a client’s house insurance? No!

    So why does a Risk Insurance adviser need to know how many 75+ year olds say they are in poor health? Or, what can you do if you become aware of possible mistreatment of an elderly person living in an aged care facility? I only [need to] know the answer because my 89 y.o. Mum is in aged care!

    I’m a one-man band – I don’t have staff – so I don’t require tuition on how to improve my non-existent employees’ workplace and make them feel better about their job!

    Ask me any exam question pertaining to risk insurance [from supply of my FSG through to how a claim is handled] and I’d be an ‘AAA’ grade student!