The SMSF Association has welcomed government plans to reform the educational pathway to become a financial adviser, but has called for the same level of quality that exists in the current set-up to be maintained.
Association chief executive Peter Burgess said the limited nature of the existing pathway for new entrants was no longer suitable for the needs of the advice sector.
“With the number of new entrants to the profession declining rapidly and the number of universities offering financial planning courses also declining, it is essential we fix the current ‘one-size-fits-all’ pathway and attract future talent and like-minded professionals,” Burgess said.
“The lack of recognition for existing qualifications in the current pathway, forcing all new entrants to complete an ‘approved’ financial planning qualification, deters many prospective entrants, especially if they have a degree in a related discipline.”
The planned changes, announced yesterday by Financial Services Minister Stephen Jones, will allow anyone with a bachelor’s degree or higher in any discipline to become an adviser after having met minimum study requirements in relevant financial concepts such as finance, economics or accounting.
Burgess said retaining the focus on holding a bachelor’s degree or higher did not lower the current education standard, but reduced barriers to becoming an adviser by allowing existing degrees to be considered towards meeting the new requirements.
“While flexibility is needed, care must be taken to mitigate the risk of variation in the quality of qualifications and licensee requirements,” he added.
“It is essential advisers have the knowledge and skill they need to provide consumers with trusted quality financial planning advice.”
“We look forward to working with the government on the details to ensure the appropriate levels of qualification, professionalism and consumer protection are maintained so we can build a sustainable advice sector and meet the growing demand in the community.”
