‘You’re kidding me, right?’: Adviser says numbers dropped because of FASEA standards

Appearing on a new episode of the ifa Show, founder and CEO of WOW Women’s Group Tracey Sofra said prior education not being recognised by FASEA, which has been widely criticised previously, meant advisers, particularly older planners, opted to exit the industry.

Currently, existing advisers with no degree must have an approved qualification by 1 January 2026.

“Even people like myself who [were] told that I had to do this exam. It was like, ‘What? You’re kidding me, right?’ I'm degree qualified. I've done my CPA. I've been in business for 27 years. You want me to do what? I kind of got offended,” Ms Sofra said.

“… there’s been so many advisers that I know… they just couldn't bring themselves to sit for that exam. I mean, it was a tough exam. It really was.

“And it wasn't about knowledge. It was around, ‘what would you do in this situation? What would you do in that situation?’ So it was more around, I guess, the ethical conduct and making sure you're doing all those right things. So it was quite strenuous.

“So those people who sat it and didn't get through and those people who just didn't want to attempt it are out of the industry.”

Late last year it was revealed that the number of Australian advisers shrank below 19,000 late last year and is predicted to reach 13,000 by the end of 2023.

In January, FASEA was wound up and its responsibilities were passed to ASIC. 

The current education requirements have been criticised by a number of groups within the sector, including the FPA, AFA and The Advisers Association, with CEO Neil Macdonald saying the industry will experience a “mass exodus” by 2026 if changes are not made.

Listen to the full ifa Show with Ms Sofra here.

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.