Treasury has released a consultation paper on changing the education requirements for existing advisers, specifically those who have significant on-the-job experience. The consultation paper also seeks feedback on how education standards for new entrants could be improved.
The new Government made an election commitment to remove tertiary education requirements for financial advisers who have passed the exam, have 10 years’ experience and a clean record of financial practice could be implemented.
The proposed changes are:
Existing advisers
- Registered on the Financial Advisers Register between 1 January 2016 and 1 January 2019.
- Do not meet the experienced advisers’ criteria.
- Passed the financial adviser exam and complete annual CPD
- Not have been banned, disqualified, or subject of a court enforceable undertaking as of 1 January 2019
Experienced advisers
- Advisers with 10 years full-time equivalent experience in Australia between 1 January 2004 and 1 January 2019.
- Holds a clean disciplinary record.
- No tertiary education requirements.
New entrants
- Individuals who are not Existing Advisers or Experienced Advisers.
- Hold an approved bachelor’s degree (or higher qualification).
- Undertake a professional year.
Under this approach the core knowledge areas in an approved degree would be reduced from the current 11 core knowledge areas to 5. It is intended that through reducing the core knowledge areas that a broader range of degrees become eligible as entry pathways to the financial advice profession.
The proposed new core knowledge areas comprise:
• Taxation law
• Commercial law
• Financial advice regulatory and legal obligations
• Ethics and professionalism
• Behavioural finance and client engagement.
If you found this article helpful, then subscribe to our news emails to keep up to date and look at our video courses for in-depth training. Use the search box at the top right of this page or the categories list on the right hand side of this page to check for other articles on the same or related matters.
Author: David Jacobson
Principal, Bright Corporate Law
Email:
About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
