As many as a quarter of degree-qualified financial planners are facing the cost of further education because their qualifications are not recognised under the Financial Adviser Standards and Ethics Authority (FASEA) regime.
That is one of the key findings of Money Management’s survey of adviser intentions in the wake of the FASEA regime, with respondents signalling their deep concern that the FASEA has not gone far enough in appropriately recognising older degrees, even when those degree have been supplemented by other qualifications.
The survey revealed that around six per cent of respondents held “non-relevant” degrees while a further 18 per cent held “non-relevant” degrees as well as diplomas of financial planning and other similar qualifications.
A number of respondents have expressed suspicion that the failure to recognise older degrees is owed to the number of academics sitting on the FASEA board, alleging that their education institutions will emerge as major financial beneficiaries form the new regime.
Some respondents said that the time they would need to dedicate to pursuing the necessary study and bridging courses was such that they would be culling lower-value clients, even though those clients would still need advice.
The Money Management survey has confirmed that as many as 30 per cent of advisers are likely to exit the industry because of the FASEA regime, but some advisers have suggested this figure may grow if the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry brings an end to grandfathered commissions.