Last week it was the Opposition announcing its ‘No Bachelor Degree’ policy and this week the Government released its detailed proposal for an ‘Experience Pathway’ for 10-year advisers of good standing. As we note in the article, in a very brief space of time, the world has suddenly changed for perhaps thousands of advisers when it comes to their future in the industry…
The Federal Government has released a consultation paper which proposes to recognise on-the-job experience for advisers who have 10 or more years of full-time experience.
This announcement, and the accompanying consultation policy paper, which has clearly been in development for some time, seeks feedback on the Government’s proposal to amend the education and training standards for ‘relevant providers’ (financial advisers) required by FASEA – specifically the requirement to complete certain education requirements before being able to provide financial advice or continue providing financial advice.
The critical element of the proposed amendments …is to create a new pathway for advisers who can demonstrate ten or more years of full-time experience…
The critical element in the proposed amendments to FASEA’s existing standards is to create a new pathway for advisers who can demonstrate 10 or more years of full-time experience in the last 12 years.
This move by the Government follows Labor’s announcement last week that proposes similar adjustments to FASEA’s existing education pathways (see: Grad Dip Not Required…).
Under the Coalition’s proposition, education pathways for financial advisers will be split between two distinct pathways, namely Qualification and Experience.
…what the Government defines as ‘Primary Qualifications’ …will not be required for those advisers who meet the Government’s newly-designated ‘Experience Pathway’
What the Government defines as ‘Primary Qualifications’, which equate to a bachelors’ degree or higher with at least eight units in a related field of study will not be required of those advisers who meet the Government’s newly-designated ‘Experience Pathway’.
Under this pathway, those with 10 or more years full time experience as a financial adviser in the last 12 years – as of 1 January 2026 – will only be required to have passed one tertiary level ethics unit before the 1 January 2026 cut-off date.
There are more elements that accompany the Government’s announcement, but in relation to the critical issue of what is now proposed to be required of existing 10-year advisers of good standing to deliver personal financial advice beyond by 1 January 2026, the world has changed.
Click here or on the image below to access the Government’s newly-released Consultation Paper on Education Standards for Financial Advisers.
Submissions as part of the Government’s consultation process are requested by 1 February 2022 and can be emailed to: FAStandards@treasury.gov.au.