{"id":54027,"date":"2021-02-02T11:17:30","date_gmt":"2021-02-02T01:17:30","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=54027"},"modified":"2021-02-09T12:52:37","modified_gmt":"2021-02-09T02:52:37","slug":"sensible-changes-sought-on-adviser-education-submission","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2021\/02\/02\/sensible-changes-sought-on-adviser-education-submission\/","title":{"rendered":"&#8216;Sensible Changes&#8217; Sought on Adviser Education &#8211; Submission"},"content":{"rendered":"<p>Rice Warner has reiterated the findings of its October 2020 report for the FSC on the <em>Future of Advice<\/em> in its submission to ASIC on promoting access to affordable advice; including a call for the law to recognise specialisation by advisers.<\/p>\n<p>(See: <a href=\"https:\/\/riskinfo.com.au\/news\/2020\/10\/20\/launch-of-radical-plan-to-revamp-financial-advice\/\" target=\"_blank\" rel=\"noopener noreferrer\">Launch of Radical Plan to Revamp Financial Advice<\/a>.)<\/p>\n<p><a href=\"https:\/\/riskinfo.com.au\/news\/files\/2021\/02\/Ltr-Rice-Warner-Submission-Promoting-access-to-affordable-advice-for-consumers-ASIC-180121.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">The company\u2019s submission<\/a> to ASIC notes that in summary it believes that:<\/p>\n<ul>\n<li>The overall legislative and regulatory regime must be structured around the different levels of complexity and risk of products and the advice that is given regarding them<\/li>\n<li>The compliance regime for a specific set of advice must be appropriate to the complexity, risk and specific requirements of that advice<\/li>\n<li>The educational and practice standards for a specific set of advice must be appropriate to the complexity, risk and specific requirements of that advice<\/li>\n<\/ul>\n<p>It\u2019s submission includes a section on education noting that as with all other aspects of the financial advice regime, there is no differentiation between the type of advice and its complexity.<\/p>\n<p>\u201cWorse, the requirement of a three-year degree in financial planning effectively shuts out of the market many potential practitioners, who may be more qualified! Examples are actuaries and accountants.&#8221;<\/p>\n<blockquote><p>&#8230;A stockbroker need not be an expert on life insurance; a life insurance specialist does not need to understand investment markets&#8230;<\/p><\/blockquote>\n<p>While Rice Warner says it agrees that those financial advisers providing complex advice on a regular basis need to be properly educated, it would seek \u201csensible changes\u201d:<\/p>\n<p>\u25aa The law should recognise specialisation. A stockbroker need not be an expert on life insurance; a life insurance specialist does not need to understand investment markets<\/p>\n<p>\u25aa Those who are qualified in other relevant fields should be able to provide advice within minimal additional qualifications. For example, a superannuation actuary should be able to give advice to consumers approaching retirement without needing a tertiary degree in financial planning<\/p>\n<p>\u25aa Many aspects of scalable advice carry little risk for consumers, and the education and training of those delivering this advice need not be as thorough nor as complex as for those providing comprehensive advice<\/p>\n<p>The submission says the company considers there to be many professions where education and qualifications are specific to the level of service being provided.<\/p>\n<p>It says a good example is the medical profession with generalist and specialist doctors, nurses, nurse practitioners, midwives, and paramedics. \u201cMany doctors objected when paramedics were established as a profession with authority to deliver complex therapies and dangerous drugs, but nobody objects today.\u201d<\/p>\n<p>Rice Warner says people who are well trained in specific, limited disciplines can deliver a service that is at least as professional as that delivered by those with more comprehensive training. &#8220;A similar approach is needed for financial advice.&#8221;<\/p>\n<p>Also see: <a href=\"https:\/\/riskinfo.com.au\/news\/2021\/01\/26\/call-for-a-combined-working-group-to-address-cost-of-advice\/\" target=\"_blank\" rel=\"noopener noreferrer\">Call for a Combined Working Group to Address the Cost of Advice<\/a> and <a href=\"https:\/\/riskinfo.com.au\/news\/2021\/01\/25\/new-asic-advice-unit-proposed\/\" target=\"_blank\" rel=\"noopener noreferrer\">New ASIC Advice Unit Proposed.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Rice Warner has reiterated the findings of its October 2020 report for the FSC on the Future of Advice in its submission to ASIC on promoting access to affordable advice; including a call for the law to recognise specialisation by advisers. (See: Launch of Radical Plan to Revamp Financial Advice.) The company\u2019s submission to ASIC [&hellip;]<\/p>\n","protected":false},"author":24,"featured_media":54036,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,6994],"tags":[],"class_list":["post-54027","post","type-post","status-publish","format-standard","has-post-thumbnail","category-compliance-regulation","category-education"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/54027","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=54027"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/54027\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/54036"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=54027"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=54027"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=54027"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}