SAFAA pushes FASEA to change pathways for ‘mature advisers’

In a submission to FASEA, SAFAA said it is “not happy with FASEA’s proposed pathways”, noting that a “significant number” of advisers are expected to leave the industry if the pathways are enforced in their current form.

“This will result in a low level of advice for retail clients,” SAFAA said.

“Additionally, it will also mean that there will be a reduced number of experienced advisers to mentor new entrants to our industry. It is highly probable that consumers will be disadvantaged for a number of years.”

SAFAA suggested this problem could be mitigated by accepting an AQF level 8 certificate as a sufficient qualification for “an existing, experienced adviser without a degree” and provide a more practical pathway for older advisers to leave the industry by “extending the sunset period” for these advisers.

“This would still necessitate these advisers passing the national exam and complying with CPD during that time,” SAFAA added.

The association also suggested the national exam focus “exclusively on the subjects intended for the bridging course”, which would then make the bridging course redundant, “as would any separate requirement to study ethics”.

Last week, ifa reported that SAFAA had joined a number of other associations, including the AFA, to form the Alliance for a Fairer Retirement System – a lobby group opposed to the Labor party’s proposal to disallow refunds for excess franking credits.