SIAA asks Jones to pick up pace on education reform

In a piece titled Year in Review, Judith Fox, the CEO of the Stockbrokers and Investment Advisers Association (SIAA), asked Financial Services Minister Stephen Jones to expand the qualification pathway to provide education appropriate for those working in capital markets.

Recapping 2022, Ms Fox said that while Mr Jones had committed to change prior to the 2022 federal election, “regrettably, we are still waiting for legislative confirmation that 10 years of experience is the equal of a degree”.

“Equally regrettably is that we are still waiting for the qualification pathway to be expanded to provide for education appropriate for those working in capital markets,” Ms Fox said.

She argued that while the current regime imposes a financial planning education model on “our profession”, studying insurance and aged care “is not appropriate” for those monitoring company balance sheets; undertaking sector analyses; understanding the growth and value opportunities of entities listed on the Australian and global exchanges; and considering micro and macro factors domestically and globally that may influence equity investment decisions.

“Indeed, the firms in our industry employ financial planners and are fully committed to their undertaking relevant study, but they also employ stockbrokers and investment advisers and understand they need education tailored to the financial advice they provide,” Ms Fox said.

“Financial planning firms do not employ stockbrokers and of course, are not market participants and do not have this broader view of why an expanded qualification pathway is required,” she added.

In December, Financial Services Minister Stephen Jones promised to have the provisions for the implementation of the experience pathway ready for legislation by mid-2023.

“I can advise you today that I am confident that we will have provisions ready for legislation in the first half of next year,” Mr Jones said while speaking at the Association of Independently Owned Financial Professionals’ (AIOFP) annual conference.

“Some of you may ask why the commitment for relief for experienced financial advisers or even changing the qualification framework for qualified financial advisers hasn’t already been done, well we can’t just do that with a stroke of a pen,” he continued.

Moreover, Mr Jones confirmed that the government would provide “consultation documents for the sector on those issues in the early months of next year”.

“It would be my hope that we’ve got legislation in the first half of next year through to Parliament so those things can be settled.”