Today’s announcement by the Government on the new proposed professional standards have been welcomed by the Association of Financial Advisers (AFA), with a number of the key issues raised by the AFA now addressed.
“The AFA is pleased to see that many of the concerns we raised on behalf of members with the Government have been taken into account in the Minister’s latest announcement,” says AFA Chief Executive Officer, Brad Fox.
The AFA has been lobbying the Government on behalf of its members for the revised draft legislation to include a longer, more flexible and practical approach for existing advisers to transition and comply with the degree equivalent and exam requirements, recognising existing courses and qualified expertise.
“We do not want to lose some of our most experienced advisers from the industry, so we are pleased to see a common sense approach to the new standards has been applied and that our recommendations have been taken on board,” Mr Fox says.
The Minister for Small Business and Assistant Treasurer Kelly O’Dwyer announced today the Government will not require existing advisers to complete a Bachelor’s degree, but rather degree equivalent status.
Further, the timeframe to meet the education and exam requirements has been revised from 1 July 2017 to 1 January 2019 while existing advisers will have until 1 January 2024 to reach degree equivalent status and until 1 January 2021 to pass the exam.
The statement released by the Minister says this could be achieved via a number of flexible pathways, including by completing bridging courses approved by the new standards body.
The AFA also lobbied for more adviser industry representatives to be included on the standard setting board as well as for the value of professional associations in compliance scheme monitoring.
The Government also announced today its proposal to establish a standard setting body, responsible for developing and setting an industry exam, developing the code of ethics and determining the education requirements for both new and existing advisers.
The AFA will remain part of this ongoing discussion and review of education and professional standards.
“We will continue our collaborative policy discussions to raise the professionalism and growth of the advice profession and improve trust and outcomes for consumers,” Mr Fox says.
