The Government’s changes to the draft legislation to reform the professional standards of financial advice have been welcomed by the SMSF Association.
Association CEO/Managing Director Andrea Slattery says the decision to give experienced advisers “greater flexibility” to meet the new education standards rightly recognised their skill set built up over many years and as such is a “step in the right direction”.
“The fact this change includes the ability for the new standards setting body to exempt ‘highly experienced advisers with exceptional skills and qualifications’ from sitting the new industry exam is due recognition of their standing in the industry.
“Another pleasing development is the extended timeframes that will ensure that the reforms are bedded down in an orderly manner. This is especially important for education providers who will need to develop new courses and for existing advisers to undertake further education where needed.
“However, the extended timeframe should not be seen by financial advisors as an opportunity to hold off on achieving higher competencies but as a challenge to their professional duty to keep improving their professional skills.
“This is an opportunity for the financial advice industry to prove its professionalism and trustworthiness to consumers.”
The changes, announced yesterday by Assistant Treasurer Kelly O’Dwyer, will see the education and exam requirements start on 1 January 2019 instead of 1 July 2017, and existing advisors will have five years to reach degree equivalent status and two years to pass the exam.
Slattery says the Association strongly believes that the reforms are an important step in raising professional and education standards for advisors and for the professionalism of the sector.
“We are pleased that the Government’s announcement addresses a number of concerns that the Association and other industry bodies raised about the first draft of legislation in late 2015, and we look forward to working with Government and industry to ensure that the reforms achieve higher educational and ethical standards for the advice industry.
“The Association is and will continue to be an advocate for high education and ethical standards, professionalism and increased specialisation in financial advice,” she says.
