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The Parliamentary Joint Committee (PJC) Inquiry into Financial Services and Products has recognised the need to lift the training and entry requirements for the financial planning industry, and some education providers have reacted positively.
The education bar currently stops at the Australian Securities and Investments Commission’s RG 146 requirements, however, industry groups have argued for years that it is not good enough.
Kaplan Australia chief executive Neil Shilbury approves of the drive to raise qualification standards and questioned the ability of many of the about 400 education providers in Australia to offer quality education in financial planning. He feels that the entry levels are appropriate, but that financial planners should continue to upskill beyond minimum regulatory requirements.
“We can work with the industry bodies and if they feel that it is necessary that people do a degree qualification, we are happy to work with the industry to achieve that,” he said, adding that Kaplan already offers a masters degree that has financial planning as a key stream.
He feels that the industry should adopt a progressive outlook. “We don’t think that once you set the bar at a certain level that’s where it ends. And it’s an ongoing progression that we continue to improve the qualifications that we offer.”
Sandy McManus, member of the Mentor Education Group board, which comprises Adviserlink, RG 146 Training Australia and Future Staff, said the group has prepared for a higher education outcome for the industry.
She feels the industry deserves to be recognised as a profession but believes, like in the accounting industry,
vocational training does and should continue to play an integral role.
“I think a blend of vocational and higher education is critical for the wellbeing of all financial advisers,” McManus said. “But as people go through their vocational education pathways there should be clear guidelines as to what they are able to do under those qualifications.”
She said this is not dissimilar to the accounting industry, where people often train their way up from book keepers to becoming a certified chartered accountant.
McManus feels there is a gap between tertiary education and vocational training that needs to be bridged, and said there needs to be robust discussion between all parties, including the Government, financial planning industry, and education providers at both the tertiary and vocational levels, to deliver the best outcomes for financial advisers, enabling them to achieve the professional standing they deserve.
