The Financial Adviser Standards and Ethics Authority (FASEA) has confirmed the professional year (PY) requirement for new entrants into the financial advice industry can be done part-time, allowing flexibility for new advisers who cannot work full-time.
FASEA said the number of new entrants that had commenced their PY had risen from 46 in 2019 to over 400 today.
Amelia Constantinidis, FASEA standards director, said there were provisions for licensees to be able to accommodate part-time advisers.
“The standard is a minimum of 12 months, and the hours that have been described in the standard which is 1,600 hours are taken on the basis it is full-time,” Constantinidis said.
“It can be extended to someone that is a part time employee and we are aware of people – I don’t know the exact numbers – that have enquired to us if they can take a PY on a part-time basis and what would that actually mean.”
FASEA could not confirm if it consulted with any part-time advisers or their representative union, the Financial Services Union (FSU), in the development of continuing professional development (CPD) and PY standards.
“Consultation was done broadly online, we released a consultation document for people to respond to,” Stephen Glenfield, FASEA chief executive, said.
“I don’t know if the union put in a submission directly or not. I’m not aware that we [sought out the union].”
PY requirements commenced on 1 January, 2019, and was a requirement under the Corporations Act for all new entrants in the industry to undertake before becoming a qualified financial adviser.
Included in the 1,600 hours of full-time equivalent work, they were also required to undertake 100 hours of structured training.