Financial advisers have received an update about the education requirements they must meet under the new Financial Adviser Standards and Ethics Authority (FASEA) regime.
FASEA’s proposed education pathways for existing advisers will provide the industry with “early certainty” on what will be required, according to Minister for Revenue and Financial Services Kelly O’Dwyer.
Under FASEA’s proposed guidance, advisers will be required to have an AQF7 qualification (equivalent to a three-year full-time university degree) or an AQF8 qualification (equivalent to a postgraduate certificate) to continue practising after 1 January 2024.
Ms O’Dwyer said the new guidance offers clarity to existing advisers regarding the course of action they will need to take.
“This announcement will provide early certainty around what will be required for financial advisers to meet the new requirements,” Ms O'Dwyer said.
Ms O’Dwyer said under the previous regime it was possible to become a qualified adviser “after only four days’ training”, and both the Financial System Inquiry and the parliamentary joint committee on corporations and financial services had “understandably” found this to be insufficient.
“This announcement by FASEA continues the implementation of the government's reforms that will build trust and confidence in the financial advice industry and ensure that consumers have access to professional advisers who will put their interests first,” Ms O'Dwyer said.
FPA chief executive Dante de Gori has also backed the guidance, saying in a statement that it will “help alleviate some of the anxiety” financial advisers are feeling regarding the future of their careers.
“We are supportive of FASEA’s framework and welcome the clarity provided by today’s proposed guidance on qualifications and pathways for existing planners,” he said.
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