A collective of representative bodies from across the financial advice sector has put forward a proposal to improve the education pathway for new advisers, including study in specific specialised areas.
The Joint Associations Working Group (JAWG) stated it had developed a proposal that builds on a Treasury consultation paper examining changes to financial adviser education standards released in August 2022.
That paper stated the number of knowledge areas covered in the education standards for new entrants should be reduced from 11 to five to give all advisers “a common foundation of knowledge” while allowing a wider range of degrees to become eligible as entry pathways to the financial advice profession.
The JAWG proposal echoed this approach, agreeing there should be “five core knowledge areas with a further three elective knowledge areas to be chosen from a broad list that recognises different streams of financial advice”.
“Examples of elective knowledge areas could include SMSF advice, portfolio management and aged care,” it said.
In further proposals not put forward by Treasury, the group also called for the ability to complete study units across multiple programs, which can be supplemented by bridging units at the time or at a later date if required.
Additionally, it also suggested the curriculum for new entrants should be set and maintained by a broad representative advisory group that included representatives from associations and academia.
“These principles aim to enhance the flexibility of the education standard for new entrants while maintaining professional standards,” it said.
“Under the JAWG proposal, the minimum requirement for new entrants would remain a tertiary degree. Importantly, the existing approved programs would remain valid and available.
“This proposal gives new entrants and career changers greater flexibility by recognising more of their pre-existing degree courses, while maintaining appropriate qualification levels to ensure consumer protection.”
It added it had met with Treasury to work on the details of its proposal and would continue to work across the advice sector to ensure the education requirements encouraged more new entrants into the profession.
The JAWG is made up of 11 industry and professional bodies representing financial advisers, stockbrokers, accountants, superannuation trustees and investors and includes the Boutique Financial Planning Principals Association, Chartered Accountants Australia and New Zealand, Financial Advice Association of Australia, Financial Services Council, Financial Services Institute of Australasia, Institute of Public Accountants, Licensee Leadership Forum, SMSF Association, Stockbrokers and Investment Advisers Association and The Advisers Association.
