The Australian Institute of Superannuation Trustees (AIST) has broadly supported proposals to raise education standards among financial advisers, but proposed an alternative to the three-tiered approach outlined in the Australian Securities and Investment Commission’s (ASIC) CP153 consultation.
ASIC’s proposals revolve around an initial examination assessment followed by a 12-month monitoring and supervision period, with regular knowledge update reviews.
The AIST proposal involves more flexibility in the supervision and monitoring period to accommodate different advice delivery methods, but with more stringent ongoing assessment requirements.
While the AIST also supported the intent of all advisers sitting a national exam, the association said that if this became prohibitive for time or cost reasons then an exam should be mandatory for all new entrants at a minimum.
It may not be possible to have new advisers under supervision at all times, in which case a checklist could be developed as to what needs to be covered at a minimum, and the 12-month time frame is also impractical for new entrants delivering general or phone-based advice, the AIST stated.
The AIST also believed that three years was enough experience for supervisors in this period rather than the originally slated five years.
Regarding ongoing monitoring following this period, AIST said that three years was too long between assessments due to the number of changes in legislation that could occur in this period. This knowledge update review requirement should be included in continuing professional development requirements, AIST stated.
