Legislation to better recognise the experience of long-serving advisers was tabled in Parliament last week by Financial Services Minister, Stephen Jones.
In his speech introducing the legislation Jones said that Schedule 2 of the bill “…delivers on the government’s election commitment to remove the education requirements for experienced financial advisers who have 10 years experience and a clean record, who have passed the financial adviser’s exam.”
It also addresses technical limitations in the education requirements for new entrants into the financial advice profession and financial advisers who are registered tax agents.
Jones says that together, these amendments “…address practical implementation issues faced by financial advisers.”
He noted that by “…better recognising the experience of long-serving financial advisers, the government is providing a pathway for experienced advisers to remain in the industry.”
“This means that new entrants have the benefit of their experience through mentoring, through supervision and through employment. It also means that more Australians will have access to financial advice than would otherwise be the case.”
He added that the Government is committed to an advice industry “…with strong professional standards that give Australians access to high-quality financial advice and to do this by not creating unnecessary barriers to entry, ensuring financial advice remains a career of choice.”
Much-needed Certainty for Advisers
The FAAA’s CEO Sarah Abood says the association is pleased the Government has moved ahead with its proposed experience pathway legislation “…which will provide much-needed certainty for financial planners and advisers.”
She says the organisation is “…disappointed the Government has decided not to include a sunset clause or ethics unit, which many of our members had supported.”
However, she adds, it welcomes the recognition of the experience of long-serving financial advisers “…which is something the FAAA and its two predecessor bodies have long argued for.”
Jones said other measures in the Bill will:
- Improve the integrity of consumer markets for credit products
- Support competition in the provision of clearing and settlement services for cash equities
