Treasury today issued its consultation paper that finally progresses the reform of the education standards for financial advisers – reforms that are needed to address the current shortage of financial advisers and meet the demand for financial advice.
“We are pleased that the government has taken the next step to reform the education standard for financial advisers. This finally addresses the failed approach to the education pathway into the profession of financial adviser that has resulted in a collapsed pipeline for new talent,” said the CEO for Stockbrokers and Investment Advisers Association (SIAA), Maria Lykouras. “The SIAA board met with Minister Mulino earlier this month and emphasised how important it was to implement a more flexible pathway and we welcome this consultation.”
“It is critical that candidates with highly suitable degrees in finance, commerce, business and economics from Australia’s top universities have their degrees recognised rather than being dismissed as they currently are,” she commented. “It is also vitally important that different financial concepts covered by a broad range of subjects from different disciplines such as economics, accounting, investments, finance and commercial law are recognised and counted towards the education requirement.”
The government’s proposal recognises that a degree is just the first step in becoming a fully qualified financial adviser. New entrants must complete the Professional Year, with its 100 hours of training and supervision by an experienced adviser, as well as sit the National Adviser exam before they can take on qualified adviser responsibilities. They also then have 40 hours per year of continuing professional development.
“The lack of recognition of completed qualifications such as commerce and economics has made it challenging to attract the best and brightest from the top universities as these candidates are currently required to incur significant costs and time to complete an approved degree,” said Mrs Lykouras. “SIAA will be looking at the consultation carefully to ensure that the proposals deliver the flexibility that the profession requires.”
The government’s proposed changes also facilitate greater diversity in the profession, by ensuring that experienced professionals seeking a career change can utilise their existing degree. “This is particularly important for female mid-career professionals,” said Mrs Lykouras. “With women making and inheriting wealth in increasing numbers and research showing that women frequently prefer to see a female adviser, the need to attract women to the profession is vital.”
Contact:
Maria Lykouras, CEO
0467 773 218