The SMSF Association welcomes the announcement that the Government has commenced consultation on reforms to the education standards for financial advisers.
The consultation paper released today proposes a new qualification pathway for new entrants to the profession, while retaining key professional requirements including passing the financial adviser exam, completing a professional year and undertaking ongoing continuing professional development.
SMSF Association CEO, Peter Burgess said, “The number of new entrants to the profession, and the number of universities offering financial planning courses are declining, so it is essential we fix the current ‘one-size-fits-all’ pathway and attract future talent and like-minded professionals.”
“The lack of recognition for existing qualifications in the current pathway, forcing all new entrants to complete an approved financial planning qualification, is too restrictive and deters many prospective entrants, especially if they have a degree in a related discipline.”
“Improving access to trusted and high-quality advice means fewer consumers will be susceptible to unlicensed operators, predatory forms of lead generation and high-pressure sales tactics that can cause significant consumer harm, particularly in the SMSF sector.”
Mr Burgess said that centring the new pathway on holding a bachelor’s degree or higher maintains the overall education standard while reducing unnecessary barriers by recognising existing qualifications.
“However, while greater flexibility is welcome, it will be important to mitigate the risk of variation in the quality of qualifications and licensee requirements,” he said.
“It is essential that advisers have the knowledge and skills needed to provide consumers with trusted, high-quality financial planning advice.”
“We look forward to working with the Government on these important reforms and building a sustainable and professional advice sector that meets the growing demand for financial advice in the community.”