SAFAA applauds ‘experience pathway’: ‘It restores common sense’

On Thursday (16 December), the government proposed an “experience pathway” that streamlines the minimum education requirements and recognises on-the-job experience for individuals with 10 or more years of full-time experience.

Welcoming the proposal, the Stockbrokers and Financial Advisers Association (SAFAA) said it “restores common sense” to education standards to the benefit of Australians needing sound financial and investment advice.

“The government’s proposals restore Parliament’s intent, which clearly stated that a degree or degree equivalent was required and also deep experience and prior learning would be recognised as the equivalent of a degree,” said Judith Fox, SAFAA chief executive.

“It was the standards authority – a bureaucracy that was averse to stakeholder engagement – that narrowed the scope of recognised qualifications. It deemed a range of advisers with degrees best suited to stockbroking and investment advice as unqualified and skills, knowledge and experience unsuitable for recognition.”

Ms Fox pointed to the significant adviser exodus, noting its direct link to existing education standards. She also believes the strict approach is responsible for the cost of advice and the rising tendency for graduates to shy away from entering the profession.

Also, the government confirmed that higher education providers would be responsible for ensuring their courses meet the relevant requirements, which Ms Fox particularly applauded, opining that by disapproving certain degrees, the government was supporting “perverse outcomes”.

“Investment advisers have significant undergraduate and postgraduate education qualifications in commerce, economics, finance and business from Australia’s most established universities,” noted Ms Fox.

“The government’s proposals recognise that universities – rather than government – are best placed to design and accredit degrees suitable for professions.”

The proposal also acknowledged that a degree should have standing, irrespective of when it was acquired.

“It would be inconceivable to propose that High Court judges were unqualified because their degrees date from the 1980s,” said Ms Fox. “Yet the standards authority made such a determination in relation to degrees relevant to the investment profession.”

The government is welcoming submissions to this consultation until 1 February 2022.