In Australia, the 11 industry and professional bodies that make up the Joint Associations Working Group (JAWG) are looking to improve the pathways for new advisers to enter the profession. The move comes in response to a declining number of financial advisers.
In noting the number of advisers has reduced by 46% since the peak in 2019, with only 381 new entrants joining and remaining in the profession last year, the group has “…proposed some core principles to strengthen the education standard for new entrants to the profession”.
It says these principles aim to enhance the flexibility of the education standard for new entrants while maintaining professional standards.
…encouraging more advisers to the profession is now vital…
“With access to financial advice increasingly out of reach for many Australians, encouraging more advisers to the profession is now vital,” states the group.
It notes only a small number of tertiary educators offer financial planning studies, with many already reducing their courses.
Under the JAWG proposal, the minimum requirement for new entrants would remain a tertiary degree.
“Importantly, the existing approved programs would remain valid and available. This proposal gives new entrants and career changers greater flexibility by recognising more of their pre-existing degree courses, while maintaining appropriate qualification levels to ensure consumer protection,” it says.
…JAWG members have met with Treasury to commence discussions on the proposal…
The group says the joint position of the advice associations sector has been welcomed by the government “…and JAWG members have met with Treasury to commence discussions on the proposal”.
“JAWG looks forward to collaborating broadly with the sector to ensure education requirements ultimately support more new entrants into the profession.”
Core elements of the proposal
The proposal builds on the August 2022 Treasury consultation paper and includes the following elements:
- Five core knowledge areas with a further three elective knowledge areas to be chosen from a broad list that recognises different streams of financial advice. Examples of elective knowledge areas could include SMSF Advice, portfolio management and aged care.
- The ability to complete study units across multiple programs that can be supplemented by bridging units either contemporaneously or later if required.
- The curriculum is to be set and maintained by a broadly representative advisory group, including representatives from associations and academia.
The JAWG coalition of industry and professional bodies represents financial advisers, stockbrokers, accountants, superannuation trustees and investors across Australia.