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.
After spending all this time setting up enquiries and FASEA to screw the advisers, they realise they are desperate for votes and slef-employed qualified people to do their advising work. They’ve also realised they have lost the income tax being paid by the advisers.
Is there an election coming on?
Frydenberg could have fixed this 3 years ago if only he wanted to listen. But, as best as can be established, Mr Frydenberg never met with any representatives of the adviser workforce.
Too little too late LNP. You oversaw the catastrophic industry clusterf**k at the behest of the same ones who created the mess & sought to blame us & now yopu throw a few crumbs just in time for an election. Forget it!
The proposed experience pathway is fantastic news!
I have a Bachelor of Commerce Majoring in Economics & Finance and have been advising my clients for over 10 years. Under the FASEA standard I have to complete 4 units that I could probably write the course book on. I have never enjoyed online or class room learning, as I am a hands on learner. I strongly believe the 3 additional units I have to complete under the FASEA standards will be a big waste of both my and my client’s time.
We are finally starting to head in the right direction.
Our goal and next year an important focus, will be to lobby the Government and the Regulator to make it easier for specialist risk writers to rebuild their Businesses and one area we will also push for and has been my hobby horse for many years, is to separate risk advice from Investment advice, which will have areas of study that only relates to Insurance.
I am passionate about making it easier for Advisers to specialise in risk and to free up Holistic Financial Planners to have risk specialists in their Businesses, so the Planning practices can provide their clients with a solid foundation to protect what they have built and also give their clients peace of mind, knowing that their future Investment plans, won’t be derailed if they are.
I have been a harsh critic over the years of the Government and the Regulators, who were misled by vested interest groups pushing their own agenda’s and weak representation for Advisers, though I am starting to see very positive feedback from all parties to our suggestions for change and I am especially impressed with the AFA who are working hard on Advisers behalf to push for more changes that will benefit Advisers and the flow on effect, which will be increased New Business and retention of existing Insurance that will bring about improved bottom lines for Insurers and a stabilising of premiums.
I know we are all still in a very dark tunnel, though 2022 WILL be a fork in the road and the future will be better.
For all Advisers out there that have been through what has been extremely tough times, hang on to hope, have a big rest over the Christmas break and watch out for some good news that will be coming in February / March.
This would have been in the client’s best interests. Now what we are see-ing is mass exodus of advisers, increased cost, compliance and list of guidance from Safe Harbour, FASEA, Best Interest Duty, How many checklists do I have to shove in front of my advisers to make them understand what is going on. A 10 set principal max is enough. On top of that scrap the degree requirement. 10 years in the industry is a beautiful start.
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