‘Entirely in the hands of the Minister’: Key exclusion in Quality of Advice review

The terms of reference state that the Quality of Advice review (QAR) will not make recommendations on the professional standards for financial advisers, which would include education standards.

There has been much debate in recent months surrounding education as currently, existing advisers with no degree must have an approved qualification by 1 January 2026.

It has been speculated that the advice sector could see a “mass exodus” if changes are not made.

Late last year, the government released the Education Standards for Financial Advisers policy paper which proposed a pathway coined the “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.

The Association of Financial Advisers (AFA) noted that this exclusion from the QAR’s terms of reference would mean education standards are “now entirely in the hands of the Minister”, however the industry body is hopeful the matter will be resolved soon.

“It is necessary for the scope of the review to be manageable, so we understand why some of these things have been excluded,” AFA general manager Phil Anderson told ifa.

“This means that issues like the financial adviser education standard and the Code of Ethics will need to be addressed by the Government, rather than being referred to the QAR for a recommendation.

“We look forward to an early outcome on these matters.”

Reaction to news that Michelle Levy of law firm Allens has been appointed reviewer has been mixed by industry; however, groups including the FPA and wealth giant AMP welcomed the news.

A report will be provided to the government by 16 December this year.

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.