Up to 70 per cent of Australian financial advisers will need to undertake further education should they wish to continue advising once the Financial Adviser Standards and Ethics Authority’s (FASEA’s) regime kicks in, according to data consultancy company, Skilful Analytics.
Data analysis by the company revealed that 48 per cent of financial advisers don’t have a degree, while 21 per cent don’t have a degree in a related field, as required by the latest incarnation of FASEA’s proposed reforms.
Of the 17,000 advisers who would need to complete “significant further study,” around 1,000 had over 30 years’ experience and may be encouraged into an early retirement rather than head to uni.
“These advisers may exit the industry early rather than undertake meaningful study. This will have a very big impact on knowledge transfer to younger advisers, as well as client experience,” Skilful Analytics principal, John Low, said.
Low questioned the impact that this would have on advice businesses.
“How will dealer groups respond and support advisers in their studies?” he asked. “From a business perspective, how will the dealer groups at greater risk of losing advisers due to early retirement manage their business for growth?”
The FASEA reforms would be open for consultation until 29 June, 2018.