{"id":65435,"date":"2023-04-18T15:46:21","date_gmt":"2023-04-18T04:46:21","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=65435"},"modified":"2025-03-14T12:02:24","modified_gmt":"2025-03-14T01:02:24","slug":"experienced-adviser-pathway-consultation-opens-on-draft-bill","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2023\/04\/18\/experienced-adviser-pathway-consultation-opens-on-draft-bill\/","title":{"rendered":"Experienced Adviser Pathway &#8211; Consultation Opens on Draft Bill"},"content":{"rendered":"<div class=\"header row\">\n<div class=\"intro\">\n<h3>Much of the interest from Riskinfo readers this week has been our report on the Government finally releasing the long-awaited draft bill for the Experienced Adviser Pathway&#8230;<\/h3>\n<\/div>\n<\/div>\n<p>The government has released for consultation <a href=\"https:\/\/treasury.gov.au\/consultation\/c2023-384538\" target=\"_blank\" rel=\"noopener\">an exposure draft Bill and explanatory memorandum<\/a> to deliver its election commitment to better recognise experienced financial advisers.<\/p>\n<p>The Treasury website states the draft legislation would deem an adviser to have met the education requirements if they:<\/p>\n<ul>\n<li>Have 10 years (cumulative) experience providing advice between 1 January 2007 and 31 December 2021<\/li>\n<li>Have not recorded any disciplinary action on the Financial Advisers Register before 31 December 2021<\/li>\n<\/ul>\n<p>Treasury says advisers would still need to pass the exam (also see: <a href=\"https:\/\/riskinfo.com.au\/news\/2022\/08\/30\/new-pathway-for-experienced-advisers-proposed\/\" target=\"_blank\" rel=\"noopener\">New Pathway for Experienced Advisers Proposed<\/a> and <a href=\"https:\/\/riskinfo.com.au\/news\/2022\/10\/07\/support-for-experienced-adviser-education-pathway-with-modifications\/\" target=\"_blank\" rel=\"noopener\">Support for Pathway &#8211; With Modifications<\/a>).<\/p>\n<p>The explanatory materials on the <em>Treasury Laws Amendment (Measures for Consultation) Bill 2023: Financial Adviser Professional Standards <\/em>says that experienced financial advisers &#8220;..who have completed a minimum of 10 years full-time equivalent experience and have a clean disciplinary record are <strong>not<\/strong> required to complete an approved degree, or complete one or more courses, determined by the Minister.\u201d<\/p>\n<p>\u201cThey are still required to pass the exam and comply with continuing professional development requirements,\u201d it says.<\/p>\n<p>Under current law, existing financial advisers must complete an approved qualification (no more than eight prescribed units) by 1 January 2026 to meet the qualification standard. They must also pass the exam and comply with continuing professional development requirements.<\/p>\n<p><strong>Approved Qualifications for New Entrants<\/strong><\/p>\n<p>The explanatory materials says under the new law, the Minister may approve one or more ways of satisfying the conditions for an approved qualification.<\/p>\n<p>\u201cThis provides greater flexibility to new entrants, recognising that there may be different study pathways available to satisfy the education and training standard.\u201d<\/p>\n<p>In addition new entrants with a domestic qualification \u201c&#8230;may apply to the Minister for individual approval, where that person has completed an approved qualification, as determined by the Minister in the Approved Qualifications Determination, but not met all the conditions attached to that qualification.\u201d<\/p>\n<p>The explanatory memorandum notes too that financial advisers who are also registered tax agents are not required to meet the additional education requirements to be a qualified tax relevant provider<\/p>\n<figure id=\"attachment_65437\" aria-describedby=\"caption-attachment-65437\" style=\"width: 502px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/riskinfo.com.au\/news\/files\/2023\/04\/new-law-and-current-law.png\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-65437\" src=\"https:\/\/riskinfo.com.au\/news\/files\/2023\/04\/new-law-and-current-law.png\" alt=\"\" width=\"502\" height=\"503\" srcset=\"https:\/\/riskinfo.com.au\/news\/files\/2023\/04\/new-law-and-current-law.png 502w, https:\/\/riskinfo.com.au\/news\/files\/2023\/04\/new-law-and-current-law-300x300.png 300w, https:\/\/riskinfo.com.au\/news\/files\/2023\/04\/new-law-and-current-law-150x150.png 150w, https:\/\/riskinfo.com.au\/news\/files\/2023\/04\/new-law-and-current-law-419x420.png 419w, https:\/\/riskinfo.com.au\/news\/files\/2023\/04\/new-law-and-current-law-50x50.png 50w\" sizes=\"auto, (max-width: 502px) 100vw, 502px\" \/><\/a><figcaption id=\"caption-attachment-65437\" class=\"wp-caption-text\">Comparison of the new law and current law sourced from Exposure Draft Explanatory Materials.<\/figcaption><\/figure>\n<p>In looking at the context of the amendments, the explanatory materials note that the <em>Professional Standards of Financial Advisers Act 2017<\/em> introduced &#8220;&#8230;new education and training requirements to improve consumer outcomes and increase public confidence in the financial advice industry.&#8221;<\/p>\n<blockquote><p>&#8230;practical implementation issues have arisen&#8230;<\/p><\/blockquote>\n<p>However, it says, practical implementation issues have arisen:<\/p>\n<ul>\n<li>Existing financial advisers with extensive industry experience and a clean disciplinary record are leaving the industry<\/li>\n<li>Potential new entrants are unable to meet the qualifications standard for technical reasons, despite meeting the substance of that requirement<\/li>\n<li>The Better Advice Act 2021 introduced unnecessary duplication of qualification requirements to provide tax (financial) advice services, for some financial advisers who are also qualified tax agents<\/li>\n<\/ul>\n<p>The explanatory document says the Schedule contains amendments to address these implementation issues \u201c\u2026whilst maintaining the high standards introduced in the Better Advice Act 2021 to improve the financial advice industry.&#8221;<\/p>\n<p>Consultation closes on May 3, 2023.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Much of the interest from Riskinfo readers this week has been our report on the Government finally releasing the long-awaited draft bill for the Experienced Adviser Pathway&#8230; The government has released for consultation an exposure draft Bill and explanatory memorandum to deliver its election commitment to better recognise experienced financial advisers. The Treasury website states [&hellip;]<\/p>\n","protected":false},"author":24,"featured_media":65445,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,8282,8291],"tags":[],"class_list":["post-65435","post","type-post","status-publish","format-standard","has-post-thumbnail","category-compliance-regulation","category-government","category-story-of-the-week"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/65435","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=65435"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/65435\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/65445"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=65435"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=65435"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=65435"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}