The majority of financial advisers support the FPA’s plans for mandatory tertiary qualifications, according to a survey by financial services research firm Tepana Associates.
The online research, which surveyed 175 advisers in October, found that 62 per cent agree with the FPA’s consultation paper that requires all new financial planners to have a tertiary qualification as a minimum requirement.
“A lot of advisers believe a relevant tertiary qualification is a necessary prerequisite for the industry because of the fiduciary responsibility of planners and the potential for significant risk to the financial well-being of investors,” Tepana Associates lead consultant Kathleen Tepana said.
“A degree qualification should mean that advisers have improved analytical skills and are capable of deeper analysis of investments.
“Indeed, some advisers believe so strongly that it will enhance their professionalism that it should apply to all planners, not just new planners.”
The survey found that 72 per cent of advisers believe that RG 146 is inadequate as the entry level qualification to provide investment product advice, with only 15 per cent of advisers rating it as adequate.
Tepana said advisers believe RG 146 is too broad, too basic and too easy to achieve and does not adequately prepare a new entrant to give adequate advice to a client.
“Most think that those who only pass RG 146 requirements shouldn’t be allowed to advise people on their investment strategy or life-changing matters,” she said.
“Specifically, advisers think that RG146 is ‘dumbed down’ and the range and depth of subjects covered is inadequate. The training is described as superficial – too focused on product rather than strategy.
“Some thought that RG146 was suitable as a basis for client service staff but not as the basis for an adviser to provide advice to clients.”
The study found advisers would also like to see RG 146 focus more on strategy development.
“Many stated that there needs to be an experience component as part of RG 146 training,” Tepana said.
