The uptake of education by those entering or currently working in the financial advice sector jumped by more than 150 per cent in the 12 months to the end of 2020, according to the Financial Adviser Standards and Ethics Authority (FASEA).
The authority released the statistics today in a statement that congratulated financial advisers and educators “who have embraced parliament’s Corporations Act amendments to raise the education standards of financial advisers”.
“FASEA commends those financial advisers who have embraced the professionalisation of the industry and embarked upon uplifting their education standards,” it said.
It stated “key highlights of advancements in financial adviser education” include a 180 per cent increase in FASEA-approved university level course units being studied by existing and potential financial advisers from 12,054 in 2019 to 33,703 individual course unit enrolments at the end of 2020.
A similar increase, of 160 per cent, was seen in postgraduate and bridging units being studied by existing advisers, rising from 6506 in 2019 to 16,886 in 2020.
At the same time, there was a 203 per cent jump in the number of bachelor degree units being studied by an estimated 2800 potential new entrants to advice from 5548 units in 2019 to 16,817 units in 2020, according to FASEA.
It also congratulated the 590 new advisers, as at September 2021, who had joined the sector over the past two years since the education standards overseen by FASEA came into force.
The number of new entrants had grown from 47 in 2019 to 209 in 2020 and to 334 as at September this year, and more than 200 financial service licensees have one or more advisers undergoing their professional year training under the supervision of an experienced adviser, it said.
“The uplifting of financial adviser levels of education represents a key component of parliament’s vision to build a trusted, educated and ethical financial advice profession,” it noted.
“Advisers who have completed their education or embarked on their education pathway will play a significant role in helping build a profession that consumers can have confidence in today and into the future.”
For existing advisers, it noted 10,800 advisers, or more than 56 per cent of those on ASIC’s Financial Adviser Register as at 30 June 2021, held an approved or relevant degree, with the remainder to attain a graduate diploma by 1 January 2026, and that around 4275 will receive recognition of prior learning to help them meet required standards.
