The federal government will begin consultation on the removal of tertiary education standards for long serving advisers with clean records of practice who have passed the mandatory financial adviser exam.
Financial Services Minister Stephen Jones said the government recognised the importance of quality and affordable financial advice and the professionalisation of the financial advice industry, and any changes would be considered in light of the Quality of Advice Review (QAR).
“The government made an election commitment to remove the tertiary education requirements for financial advisers who had passed the exam, had 10 years’ experience and a clean record of financial practice,” Jones said.
“I have asked Treasury to develop a consultation paper on options to streamline the education requirements for financial advisers, including for new entrants. I expect consultation to commence shortly.
“The exam also plays an important role in supporting the professionalisation of the financial advice industry. The deadline for existing advisers to pass the exam and continue to provide financial advice is 30 September 2022.
“After this deadline I will ask Treasury to explore whether there are areas where delivery of the exam could be improved, such as reducing the number of questions.
“I continue to support the exam as a benchmarking tool which tests the practical application of a financial adviser’s knowledge, including on regulatory and legal requirements, and ethical reasoning. I remain committed to the exam testing these knowledge areas and content.”
He said he was also aware of the financial advice sector’s representations regarding the code of ethics and possible improvements and had asked Treasury to consult on the code in 2023 after the government had considered its response to the QAR.
