Advisers are ‘getting on with it’ regardless of 10-year exemption proposal

After experiencing a significant upward trend in the second half of 2022, Kaplan said the surge to start the year is proof that financial advisers are simply “getting on with their education requirements” regardless of the proposed experience pathway.

The financial services education provider said there are three trends emerging, including that many advisers who would qualify for the proposed 10-year exemption are continuing to study. Moreover, Kaplan flagged record enrolment numbers since late 2021 and an influx of new entrants. 

According to Kaplan’s analysis, half of the advisers that have completed or are completing postgraduate financial planning studies with Kaplan would qualify for the proposed 10-year exemption.

In December, Financial Services Minister Stephen Jones confirmed that the provisions for the implementation of the experience pathway would be ready for legislation by mid-2023.

But not everyone views the experience pathway as a good move. Namely, the proposal that would equate the worth of a degree with 10-plus years of experience in the industry is by some considered a carve-out of the education requirements.

“We applaud those advisers who have positively taken on the challenge of postgraduate financial planning studies, considering the large majority of them are working full time, running businesses and supporting their families,” said Kaplan Professional chief executive Brian Knight.

“The theme of just getting on with it regardless of whether or not they meet the proposed 10-year exemption seems to be a consistent one.

“There is no doubt that the critical element of education in any profession is increasingly well understood by advisers.”

Kaplan also noted that while engagement with formal education is at its highest level since late 2021, “pleasingly”, advisers are also extending their knowledge and skills by completing continuing professional development and specialist short courses in record numbers.

The first intake of 2023 has seen almost 400 advisers take on postgraduate financial planning studies with Kaplan for the first time, with just over 100 enrolled in the standalone ethics bridging course.

“Those who are enrolling in postgraduate financial planning qualifications for the first time are looking at it as a long-term investment — one that benefits both their career and the quality of advice that they deliver to their clients,” Mr Knight said.

“Licensees are also encouraging paraplanners and support staff to upskill with a view to potentially filling gaps in the industry.”

In August 2022, Kaplan announced a dedicated paraplanning course that it said is suitable for new and existing paraplanners “and those seeking a pathway into the financial advice industry”.