The number of veteran advisers required to complete a full eight unit course of study to comply with new education requirements is around only 500 practitioners, according to the Financial Adviser Standards and Ethics Authority (FASEA).
Appearing before the Senate Estimates Economics Legislation Committee earlier this week, FASEA chief executive Stephen Glenfield presented an opening statement covering the authority’s work that provided a partial breakdown of the study required by advisers recorded on the ASIC Financial Advisers Register (FAR).
Glenfield noted that based on a FASEA analysis of the education qualifications of the 21,500 advisers recorded on the FAR, of those advisers with more than 30 years’ experience, around 500, or 2 per cent of the FAR, would be required to undertake a full eight unit course of study by the end of 2025.
He reminded the committee the education changes were introduced following inquiries into the quality of financial advice and the “amendments to the Corporations Act do not exempt or grandfather existing advisers from the requirements, but rather provide transition time frames for advisers to reach the raised standards”.
“This is a key component of the changes that were implemented and intended to address the concern that key stakeholders identified in relation to existing low minimum standards. This is often overlooked when it is suggested experienced advisers should be exempt from the rules,” he said.
He also told the committee one-third of existing advisers held an approved degree or equivalent qualification and thus had only a single ethics bridging course to complete by 2025.
The authority was able to reach this figure as it had approved a range of historic bachelor or higher courses that met at least 80 per cent of the current curriculum from higher education providers dating back as far as 1982, which Glenfield said was outside the time frame usually accepted by universities.
Where those courses fell below the 80 per cent figure, it was approved as a relevant degree and as a result of this around 55 per cent of existing advisers would only have to complete up to four units of study by the end of 2025, he noted.
Glenfield also told the committee FASEA would not approve some historical continuing professional development courses and study as the failed to meet the current education standards set under the Corporations Act.
