Experience pathway proposals finalised by joint working group

Five modifications have been suggested to the experience pathway by the Joint Associations Working Group to stem the adviser exodus.

In a submission to the Treasury review of financial advice education standards consultation, the 11 associations in the working group stated five requirements that those who wanted to access the pathway needed to meet.

It also recommended a sunset clause where the pathway would only be accessible for 10 years until 1 December, 2032. After this date, advisers would meet the requirements for existing advisers.

“Consumer need for financial advice is increasing, for example over 100,000 individuals a year are expected to move into retirement each year for the next five years. In recent years there has been a massive exit of highly experienced advisers, which is expected to continue if current settings are not adjusted, resulting in access to quality, affordable advice becoming harder for consumers to obtain.”

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The five criterion for advisers to meet were:

1. They had passed the exam;
2. They could demonstrate 10 years, full-time equivalent of relevant licensed experience between 1 January, 2004-1 January, 2022;
3. They were able to demonstrate and maintain a clear record;
4. They had signed a statutory declaration attesting 2 & 3 with penalties for providing a false declaration; and
5. Either: a) Complete an approved ethics subject by 1 January, 2026. OR b). Be a voting member (and maintain membership) of a non-profit association that has: i. A Code of Ethics / Conduct / Professional Standards ii. Mandatory CPD obligations iii. Complaints / Disciplinary system iv. Quality Review system.

The group also recommended the pathways for existing advisers and career changers were revised to ensure any required education provides value and relevance to both the adviser and their clients.

It also suggested a holistic review of the education pathways was conducted including appropriate recognition of prior learning, quality education, certification, experience and competence available at the time of completion.