The Association of Financial Advisers (AFA) in Australia supports a Government proposal for an Experienced Adviser Pathway for those already working in the industry. However, it believes the idea should not undermine confidence in the profession.
The AFA says the Government’s proposed pathway should include the following requirements:
- 10 years of experience over 15 years up to 1 January 2022 (as opposed to the Government proposal of 1 January 2019)
- The completion of the ethics qualification
- A clean record
- A 10-year sunset clause, allowing advisers who choose this pathway to continue to practice until 1 January 2032
Recognition
In welcoming the Australian Government’s consultation paper on addressing the Education Standard for financial advisers, the AFA says it strongly supports its commitment to provide greater recognition for prior learning and experience “…which we have long argued for”.
The association supports advisers “…having the option of pursuing a limited Experienced Adviser Pathway, or alternatively choosing to do further education, but to a realistic level and in areas that are of relevance”.
It believes that existing advisers should have this choice “…rather than what the Consultation Paper seems to suggest of an Experienced Adviser Pathway with no additional study requirements or sticking with the existing FASEA education standard”.
The AFA says that to achieve greater recognition of prior learning and experience, it has suggested either changing the education standard for existing advisers from an eight-subject Graduate Diploma to a four-subject Graduate Certificate, or providing credit for experience through the provision of up to three subjects for those with 15 or more years experience.
Fexibility
The AFA also notes that the consultation paper proposes greater flexibility in the study that new entrants would be required to complete and, while broadly supporting this, “…we also believe that the increased flexibility should equally apply to existing advisers who choose to do further study”.
“This is a point that we have repeatedly made,” it states. “Whilst increased flexibility for new entrants is important, there should be a requirement for a broad knowledge base, and this is an area where further consultation is required.”
The AFA says in the same member update that it is heartened by the repeated statements by the new Minister, Stephen Jones, that this is an issue that must be fixed and fixed quickly.
…The sooner we know … the sooner they can get started in doing what they need to do…
“…We hope that this is finalised before the end of the year so that financial advisers will understand where they stand and what they need to do to comply with the education standard. The sooner we know that, the sooner they can get started in doing what they need to do.”
Joint Associations Submission
The AFA adds that it has worked with a number of other associations to put together a joint submission on the Experienced Adviser Pathway, which broadly reflects what it has proposed, including a 10-year sunset clause and the requirement to do the ethics unit.