An Albanese Labor Government will not ask financial advisers to obtain a bachelor’s degree to retain their qualifications if they’ve been working for a decade as an adviser and have a good record.
This is the commitment announced to advisers and other industry stakeholders by Shadow Assistant Treasurer and Shadow Minister for Financial Services and Superannuation, Stephen Jones, at this week’s AIOFP Conference.
The Shadow Minister made this commitment in a speech which reflected on Labor’s record of reforming and building Australia’s superannuation sector. In noting the nation’s superannuation system has placed “…real financial power into the hands of many more Australians,” Jones also stated that it has never been harder for Australians to access independent, trustworthy advice.
He also stated that the ongoing decline in adviser numbers has led to an estimated 28 percent jump in advice fees over the last two years and within this context, recognising the value of financial advisers and the importance of the role they play, he said:
“If you’ve been working for a decade as a financial advisor with a good record, a Labor Government will not ask to you take that bachelor’s degree to keep your qualifications.”
We’re going to assume that that ten years plus experience is worth at least a degree
He added, “We’re going to assume that that ten years plus experience is worth at least a degree.”
In announcing this commitment, Jones cautioned that a Labor Government would not be scrapping current professional standards reforms. He said Labor would still expect advisers to:
- Pass their professional exams
- Meet continuing professional development requirements
- Abide by an appropriate professional code of ethics
“But we won’t be asking you to waste your time on degrees you don’t need,” he said, adding “We’re going to treat you like professionals.”
Riskinfo will report further details in relation to Labor’s commitment in the lead-up to next year’s Federal election, the outcome of which remains in the balance.
This is like an alternate reality, Twilight Zone frankly! Stephen Jones is saying everything we’ve all been saying about the uselessness of these qualifications (esp for riskies) for the past few years. It is the opposite of everything Friar Tuck (Frydenberg) has been saying. So refreshing to see our case in a positive light and spouted by a pollie.
What an abject mess from these deplorable self-absorbed politicians. Alas, too late for me. I retired last week, after 36 yrs at age 61 and sold my risk client base. Was planning to work past 70+ for as long as health held out. Nup, the govt has said client best interest be damned and is forcing good experienced riskies OUT ASAP.
You couldn’t make this idiocy up if you tried. I’d say I’m not Robinson Crusoe and if Labor gets in then many will be looking to get refunds from this imbecilic govt for the useless and time wasting study they’ve been forced to do. I won’t go on, we’ve heard it all before . . . heartfelt good luck to you all who remain in the circus . . .
You simply can’t believe labor. They don’t understand taxation or EV AS SEEN in the last election. I’m out and couldn’t be happier after 31 years. It’s incredibly bad what has been done to the industry and we see Hayne sure almost doubled the legal fees in Australia with the RC BUT he was incompetent and didn’t understand his subject nor the parameters set down. He broke that and let industry super off virtually scot free. Whist two industry funds were in court for unfair dismissal at that time, but no scrutiny over that. Sacking staff because they won’t join or remain in their fund. Incredible! Even last night, the first story on current affairs was pathetic and maybe that lawyer should be sacked for knowing the basics, yet CA gives him a audience and somehow turns his lack of knowledge into a positive quality. The wrong doing in the industry that directly hurts the clients and advisers was a little too much for me and my ethical values. Too service those in need is no longer feesable, just those that are rich enough. I found it too damaging to remain and compromised my ethics to remain and not perform my duties to help all who needs it. No pro bono either.
But I’m gone and regaining sanity. Too damaged by stupidity of vacuous regulators and Hayne
Am I missing something here? You don’t NEED a bachelor’s degree now – just a Grad Dip…and there’s a big difference between the two. If Jones had said ‘you don’t need a Grad Dip’ then that might have been news, but he’s saying they’ll scrap something you don’t need now anyway unless you’re a brand new entrant to the industry; not a 10-year veteran. Big deal.
Thanks for your comment, Josh. As more information becomes available, we’ll report in more detail about what elements of the current FASEA minimum education requirements may not be required, under Labor’s new policy, for 10-year advisers who have a good record. Editor.
Well one thing we do know, at least Stephen Jones has been listening to advisers. There is no way anyone could suggest that Frydenberg/Hume have listened to advisers at all. My understanding is that he hasn’t given any time at all to personally meet with advisers or their representatives in Canberra – the best one can get is 10 minutes with someone on his staff.
As the old English proverb says, “there’s many a slip twixt the cup and the lip”.. On the surface I welcome Mr Jones’s announcement. And despite all the younger members of the advisory community who look down their noses at experienced advisers having trouble with exams, I could never understand what benefit was provided to clients when specialist advisers such as risk specialists and stockbrokers need an eight unit Diploma of academic proselytizing, in order to practice after 1 January 2026.
Particularly when ones licence restricts you to your specialty.
There, that comment will attract the trolls, although to be fair they don’t seem to occupy the Risk Info columns very much . This morning, I really don’t care anyway: I have just received my FASEA exam certificate, after a year of bloody hard work learning to pass an exam. Now I can go on my own timetable.
There’s a little bit of detail missing here in this pronouncement, as alluded to by the comments from Josh Wilson. Jones is talking about a bachelor degree, but on the current rules we only have to obtain a Graduate Diploma by 1 January 2006 to continue to practice.
Is his terminology loose, or is he just another politician playing to the gallery, seeming to say one thing which can be interpreted in a number of different ways, particularly by those not paying attention. Just like most of the voting population!
Finally there’s one thing I do agree with – if you survive 10 years in this industry without financial ruin and without hurting any of your clients, you do deserve to stay. I know in my own case, I never felt comfortable that I was truly competent and confident as a risk adviser until around about five years, even after having spent most of that five years completing every training course available.
Look forward to hearing the clarification of this matter from your enquiries, Mr Editor
Congrats Oldie, on your exam certificate. One less thing to worry about for you – well done! Now, the next step, finding a buyer for your client base. The good news now of course is you won’t have to rush it and can pick and choose a bit. May you have a more relaxed time of it than I did 🙂 P.S: I think you mean 2026 in your 5th paragraph? Have a great, safe and relaxed Christmas mate!
To be, or not to be. That is the question and for thousands of honest, hard working Advisers, the latter was the answer.
In a persons life, when they look back on what they have done, you hope that there are many good deeds that helped people and created opportunities for many to flourish.
What do many Politicians and Public servants think of when they go through life doing the exact opposite to the above?
I have been one of the harshest critics of Stephen Jones Profession prior to his foray into Politics and the reason is an easy one to see why.
The Legal Industry which has a totally biased and embedded connection to the Judicial and Regulatory bodies, lives “apart” from the real world and has never understood that plain English, should be the number one RULE that all Legal, Regulatory and Judicial entities must abide by.
The reason why the Western world has gone from self reliant, to a sheltered workshop environment, is due to the Legal insane asylum that has taken over all our lives and turned the blindingly obvious, into a maze of contradiction and word play, that lives in a grey world of interpretation, which the rest of us are held hostage too.
At what point will we all wake up from this deceit and start demanding that all Lawyers, Regulators and the Judiciary come down from their Ivory towers and begin a new conversation, that combines common sense and fairness, with plain English rules, Regulations and Laws that will encourage, not destroy Businesses and peoples lives, which the current system does in spades.
This is a welcome change in the rhetoric for existing advisers, for whom handling the extra study commitments along with their other existing obligations and responsibilities is a mountainous undertaking. It signals the possbility of a more rational approach to understanding the evolution of financial services. Of course, in the next 2 decades or so, all advisers will have a relevant degree, however it is clear that demanding this leap from existing advisers has not worked well. There is a trickle of new entrants and a mass exodus of experience – which will get worse in 2025. Surely this is a sensible step in the right direction which could provide a stable foundation for existing participants and new entrants to build on. I truly hope that this announcement receives bi-partisan support.
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