Would-be financial advisers have finally been provided with some clarity, with the Financial Adviser Standards and Ethics Authority outlining the framework for new entrants to the industry.
Following its October meeting, the newly-established government body clarified its position on the qualifications that will be required for individuals entering the financial advice profession.
From January 2019, new entrants will need to have a bachelor’s degree that meets the criteria for ‘AQF7’ status set by the Australian Qualifications Framework.
The degree will need to comprise of 24 courses (including 12 “core courses”) that cover “ethics, professional attitudes and behaviours”, “financial planning and the advice process” and “technical requirements”.
The board is still considering its position on “pathways for existing advisers” and will establish a number of working groups and community consultation initiatives to that end.
Commenting on the announcement, recruitment professionals specialising in students and recent graduates said FASEA must be careful to ensure that the “pipeline” of incoming talent to the profession is not disturbed.
“It’s great to put these minimum standards out, it’s great to put the core competencies out – that’s excellent and should be done and there are no arguments there from me,” Grad Mentor founder Alisdair Barr told InvestorDaily sister title ifa.
“But what do we do to make sure the industry has enough new entrants excited about going and studying and coming into the profession to sustain its future?”'
Mr Barr’s sentiments were echoed by Spark Careers director Adrian Patty, who said the implementation of an effective bridging policy to support those currently studying can meet the required standards without undue stress.
“I think the challenge will be for people that don’t yet know that they want to be an adviser,” he said.
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