The Financial Advice Association Australia (FAAA) has made seven key recommendations to Treasury’s consultation paper on financial adviser education reforms.
In its submission, the FAAA indicated it supports the three key elements of Treasury’s proposal, which are a bachelor’s degree or higher requirement, the completion of four financial concept subjects and the completion of four accredited financial subjects.
“Our key point is to ensure that to the fullest extent possible the existing approved programs remain valid and that any additional investment required by these changes is kept to a minimal level for higher education providers who are already supporting financial advice education,” FAAA chief executive Sarah Abood noted in the submission.
To this end, the industry body’s seven key recommendations are for clarity of impact, support for existing financial advice education providers, the continuation of existing programs, guidance for licensees, inclusion of the creation of a statement of advice in recommended subjects, participation in curriculum development, and cost and funding models that would best enable access to commonwealth funding and the deferral of payment.
In terms of clarity of impact, the FAAA pointed out it is important the government makes it very clear the reforms will have no impact on existing providers who have already met the education standard.
It also stressed, given how integral preparing a statement of advice is for financial planners, learning how to create one should be explicitly included in accredited subjects.
“While we believe that [these proposed education reforms] will make a meaningful difference in providing more flexible pathways for new entrants to join the financial advice profession, it is also essential that the government is careful with the introduction of other reforms that could act as a disincentive for potential new entrants, including through the imposition of further levy increases or other limitations on the provision of financial advice,” Abood said.
