A number of financial advisers have questioned an assertion by Financial Adviser Standards and Ethics Authority (FASEA) chief executive, Stephen Glenfield that FASEA is “offering a two-thirds discount for experience” when it comes to advisers reaching Bachelor degree recognised status.
Glenfield made the claim in an opening address to the House of Representatives Standing Committee on economics, a transcript of which was released on Thursday, but advisers are claiming that such an assertion is disingenuous.
One adviser told Money Management that the two-thirds discount claim did not reflect the reality that he had passed the FASEA exam and his ethics unit and now had seven more units to complete inside the prescribed five-year time-frame.
Other advisers pointed to the fact that the New Entrant (Career Changer) – Postgraduate pathway was described by FASEA itself as “ typically consisting of eight courses or more offered by a TEQSA Registered Provider and contains the FASEA Financial Adviser Curriculum as a core part of the program”.
“On that basis, where is the reality of the two-third discount?” one asked.
In his opening statement to the Parliamentary Committee, Glenfield said: “FASEA recognises the past experience and learning from existing advisers who do not hold an approved degree. In recognition of their practical experience current advisors who do not hold an approved degree are required, at a maximum, to complete an 8 course Graduate Diploma rather than a 24 course Bachelor degree”.
“In effect this is a 2/3rds discount for experience. With a transition period to 1 January 2026 this means an existing adviser with no bachelor or higher or equivalent level of study will, at most, be required to complete approximately one subject per year to meet their education requirement.”
“Advisers who have completed relevant degrees or other forms of equivalent study are required to do less than this through FASEA’s recognition of relevant degrees and prior learning,” Glenfield said.
“For example, a stockbroker who has not completed an approved degree at bachelor level but has completed the historical Securities Institute Graduate Diploma of Applied Finance and Investments will only be required to complete an ethics bridging course to meet the education requirement.”