Allow associations to provide education

The SMSF Association has welcomed proposed changes to the education pathways for financial advisers, stating a bachelor-level qualification must be retained, but has called for an expansion of the channels through which new entrants can gain the training required to become an advice practitioner.

The industry body outlined its suggestions in a submission to the Education Reform for Financial Advisers consultation announced by Minister for Financial Services Daniel Mulino last month, noting changes were needed to the current one-size-fits-all pathway to attract younger professionals, as well as career changes, into the advice profession.

“The failings of the existing rigid education standard are evident in the declining number of enrolments in the currently prescribed qualifications, resulting in several tertiary providers ceasing to offer their financial planning qualifications in recent times,” the submission stated.

The association added the need to increase the number of advisers should be balanced with protecting the public confidence gained through the higher education, training and ethical standards introduced in recent years, and as such all new entrants should hold, at a minimum, a bachelor degree.

“The purpose of an Australian Qualifications Framework (AQF) Level 7 – Bachelor Degree is to qualify individuals who demonstrate that they can apply a broad and coherent body of knowledge in a range of contexts to undertake professional work and as a pathway for further learning,” it added.

“It also maintains the objective of the Corporations Amendment (Professional Standards of Financial Advisers) Act 2017 that all financial advisers must be at least AQF Level 7 qualified.”

The association supported the government’s proposal that a new entrant must complete at least four subjects at an AQF Level 7 or higher in financial concepts from a proposed list of concepts, but called for the addition of investment planning, which would cover areas such as investment classes, investment theory and strategies.

“This proposed requirement will provide increased flexibility for individuals to consider a career in financial planning as they progress their studies, rather than being locked into this decision at the commencement of their studies,” it stated, noting it would also allow career changers with a bachelor degree to move into financial planning without having to complete another degree.

The submission noted that with fewer higher education providers offering relevant subjects, the government should expand the scope of who can deliver AQF Level 7 or higher education to include vocational education providers and professional associations, as the relevant legislation has scope to include them.

The body claimed this expansion would allow associations to develop and offer financial concept subjects that are equivalent to AQF Level 7 or higher and deliver education content that meets the needs of the sector and new entrants while maintaining the proposed entry education standard.

The submission also called for the abolition of the financial adviser exam.

In doing so, it pointed out that with minimum education standards set at AQF Level 7, anyone who has reached that level has already passed a number of examinations to gain their qualification, so the exam was now mainly a costly barrier to entry that will need to be rewritten for the four accredited financial advice subjects.

SMSF advice practitioners can increase their professional education at the upcoming SMSF Professionals Day 2026, co-hosted by selfmanagedsuper and Accurium. Click here to secure your seat.