Education reforms to leave existing advisers in limbo
There needs to be a realistic increase in education standards for existing financial advisers, Pathway Licensee Services believes.
Pathway said the Government's proposed reforms on education standards for new financial advisers were clearly and appropriately set, but the requirements for existing advisers lacked certainty and would leave many financial advisers in limbo for another 18 months.
Pathway's head of governance, Phil Anderson, said his firm did not believe the introduction of a degree requirement was practical or appropriate for existing advisers.
"Existing financial advisers should be able to work out what additional education they need to do and then be able to start this additional training as soon as possible," Anderson said.
"As the current proposals stand, existing financial advisers will have no idea what they need to do and will be unable to start any further training until clarity is provided and that may be another 18 months."
Pathways noted that if the outcome was a strict requirement at the degree or degree equivalent level then there could be a substantial number of experienced advisers leave the market place, putting clients at risk.
It said existing advisers, who are currently running or working within a small business financial advice practice, will not have the time frame or the capacity to complete further study at a degree level.
Recommended for you
Despite the year almost at an end, advisers have been considerably active in licensee switching this week while the profession has reported a slight uptick in numbers.
AMP has agreed in principle to settle an advice and insurance class action that commenced in 2020 related to historic commission payment activity.
BT has kicked off its second annual Career Pathways Program in partnership with Striver, almost doubling its intake from the inaugural program last year.
Kaplan has launched a six-week intensive program to start in January, targeting advisers who are unlikely to meet the education deadline but intend to return to the profession once they do.
