25% of degree-qualified advisers are falling short



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.
Recommended for you
The new financial year has got off to a strong start in adviser gains, helped by new entrants, after heavy losses sustained in June.
Michael McCorry, chief investment officer at BlackRock Australia, has detailed how investors are reconsidering their 60/40 portfolios as macro uncertainty highlight the benefits of liquid alternatives.
Having reset its market focus to high-net-worth advisers, Praemium’s administration solution has been selected by Bell Potter in a deal that increases the platform's funds under administration by $6 billion.
High transition rates from financial advisers have helped Netwealth’s funds under administration rise by $3.7 billion in the fourth quarter of FY25.