FASEA standards force advisers into mortgage broking

Speaking during a House of Representatives standing committee on Thursday, Synchron chair Michael Harrison noted that his study in accountancy is not currently recognised by FASEA as a prior education as it was undertaken at the time as a diploma and not a university course.

When asked how many advisers he thinks are leaving the advice industry because of the current FASEA standard, Mr Harrison replied: “I think a lot.

“Just looking at our own records at Synchron, what we’re seeing is a lot of the older guys are moving into mortgage broking because they consider it less onerous, less regulated, they don’t have to worry and there’s no argument about where the commission is going to appear.

“I think that’s an issue. But I think also anyone over the age of about 55 who looks at going back to university to do a degree is saying ‘It’s all too hard, I’ll find another way.’

“I don’t think we’re achieving the outcomes that are desired. My view is that the outcome we should be for is to help as many people as possible to get financial advice.

“I don’t think we’re doing that in any way, shape or form.”

Mr Harrison’s comments come just weeks after AFA acting chief executive Phil Anderson said prior study needs to be better recognised by FASEA.

“The education standard… does not adequately recognise experience for previous study and, in particular, CPD that’s been done by financial advisers,” he said.

“There’s a lot of longer term financial advisers who are not getting any credit for what they’ve done in the past and required to do eight graduate diploma subjects.”

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.