FSI education benchmark applauded, but exam questioned
Industry advocate groups have broadly welcomed the Financial System Inquiry (FSI) interim report’s vow to lift the education bar for advisers, but one has questioned the validity of an overarching exam.
The SMSF Professionals’ Association of Australia (SPAA) applauded the report’s acceptance that advisers needed an educational benchmark, but questioned the validity of a sit down test.
“SPAA does not support the implementation of a national exam for financial advisers as we believe there are too many risks inherent in this approach,” its CEO, Andrea Slattery, said.
“The mere passing of an exam is evidence of past knowledge and financial planning is about practical judgment and understanding the future.
“It is essential that financial planners are continually kept up to date by a system of accreditation that includes continuous professional development that is independently assessed in both technical and practical competencies.”
Support for lifting educational standards for advisers was widely endorsed, with the Financial Planners Association (FPA) and Financial Services Council (FSC) both quick to applaud the interim report’s suggestion.
The FPA was particularly pleased the inquiry raised lifting competency standards and releasing a public register of advisers.
In his speech to the National Press Club, chairman of the FSI David Murray said the report raised some concerns about the quality of advice in Australia and canvassed further powers for the Australian Securities and Investments Commission.
Recommended for you
With the final tally for FY25 now confirmed, how many advisers left during the financial year and how does it compare to the previous year?
HUB24 has appointed Matt Willis from Vanguard as an executive general manager of platform growth to strengthen the platform’s relationships with industry stakeholders.
Investment manager Drummond Capital Partners has announced a raft of adviser-focused updates, including a practice growth division, relaunched manager research capabilities, and a passive model portfolio suite.
When it comes to M&A activity, the share of financial buyers such as private equity firms in Australia fell from 67 per cent to 12 per cent in the last financial year.
