Labor’s election pitch divides industry

Readers of the ifa have referred to Labor’s proposal as both “ridiculous” and “sensible”, but one body has thrown its full support behind the party.

Just hours after the ifa published news of Labor’s intentions to axe the need for experienced advisers to return to university, the Stockbrokers and Financial Advisers Association (SAFAA) applauded the move.

In a statement issued on Thursday (9 December), the SAFAA threw its support behind Labor’s financial services spokesman, Stephen Jones, who at the Association of Independent Financial Professionals’ (AIOFP) annual conference confirmed his party would not require advisers with 10 years of experience and an “unblemished record” to complete a university degree to practise post-2026.

“This is good policy, because it recognises experienced stockbrokers and investment advisers who have longstanding relationships with clients over decades, passed the national exam as well as an unblemished record, and their clients should not be disadvantaged because an adviser does not have a degree,” said Judith Fox, SAFAA chief executive.

“Stockbrokers and investment advisers have been undertaking significant CPD for many, many years, so continuous learning is a key aspect of their professional lives.”

Among the ifa audience, however, views have been mixed.

One reader said: “The education standards needed to increase. I had six qualifications including two degrees. I had to upgrade my studies, which I have now completed, and believe everyone needs to upgrade from the current diploma system.”

Meanwhile another applauded Labor, noting: “This finally is some sensible policy. Adviser numbers are starting to drop dramatically and this will only drive up the costs for retail clients unless adviser departures versus new entrants balance out more evenly going forward.”

Currently, Morrison’s government necessitates all licensed financial advisers obtain a tertiary degree, a hurdle blamed for the mass exodus of advisers from the industry as many experienced practitioners choose to shut up shop over returning to school.