The Financial Advice Association Australia (FAAA) is concerned those working as paraplanners will be unaware of their ability to transition to an adviser, under the proposed Australian Bureau of Statistics (ABS) classifications.
In a submission to the ABS Australian and New Zealand Standard Classification of Occupations (ANZSCO) regarding its definition of the roles of financial advisers and paraplanners, it said there are changes needed.
Currently, paraplanners do not appear on the Australia and New Zealand standard occupation list, but there is a possibility of it being added.
Under current ABS proposals, paraplanners will be classed under the minor group level 531 Financial Service and Insurance Workers, and major group level 5 Clerical and Administrative Workers.
The FAAA said this would create a “disconnect” between this role and a financial adviser as paraplanners often transition to working as advisers over time.
In a submission to the consultation, it recommended including “related occupations” underneath the paraplanner classification which can give individuals an idea of further pathways from the role.
“We are concerned about the potential disconnect between the financial adviser and paraplanner occupations. It would be helpful to include at the bottom of the classification – ‘related occupations’ with a link between each related occupation.
“This disconnect also increases the risk that users of the ANZSCO may not be aware of the existence of the new paraplanner (531932) occupation, and it’s relationship with the occupation of financial adviser (212131), which may impact the quality of the data collected.”
Research by the Paraplanner Hub and support service platform Tanngo last November found around 20 per cent of paraplanners hope to progress to become a financial adviser.
A second concern mooted by the FAAA was the use of the ANZSCO by international students who might be unaware of the strict legal framework around becoming an adviser in Australia. These include that the person has completed a bachelor or higher degree, or equivalent qualification, approved by the minister.
Instead, the proposed ABS wording states that a person can have a bachelor degree, higher qualification for at least five years of relevant experience. The FAAA requested the definition of five years’ experience be removed.
“We are aware that education providers use the ANZSCO occupations to promote their courses to prospective students, particularly international students. It is essential that such individuals are aware of the strict legal requirements they must meet to fulfil the occupation of financial adviser. Incorrect skill requirements on the ANZSCO could result in a person who relies on this information not meeting the legislated requirements to practise.”
Last year, Jobs and Skills Australia added financial investment adviser as one of 66 occupations which are classed as being “in shortage” in the country, with numbers sitting at around 15,512 as of 31 August.
