Could 70 per cent of advisers need more education?
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.
AUTHOR
Hannah Wootton
Recommended for you
Having departed Magellan after more than 18 years, its former head of investment Gerald Stack has been appointed as chief executive of MFF Group.
With scalability becoming increasingly important for advice firms, a specialist consultant says organisational structure and strategic planning can be the biggest hurdles for those chasing growth.
Praemium is to acquire an advanced technology firm for $7.5 million, helping to boost its strategy to be a leader in AI-powered wealth management.
Next year will see AMP roll out an end-to-end solution for its North platform, marking a shift in the firm’s position within the advice technology sector and building on adviser feedback.
