FSC advocates ‘deeper learning’ for financial advisers

With the experience pathway before Parliament and the government due to consult on changes to the Financial Adviser Exam and the Professional Year later this year, the Financial Services Council (FSC) has voiced its support for “deeper learning” among financial advisers.

The FSC revealed earlier this week that it has “provided government” with a package of initiatives to support “greater knowledge transfer” and “specialisation” within advice businesses, while “further incentivising” new entrants to the profession.

In a video update, Zach Castles, policy director of advice and platforms at the FSC, said, “moving the barrier for tomorrow’s financial advisers, those enrolled in financial planning courses today, is a key concern for the FSC’s members”.

Mr Castles explained that this “deeper learning”, “specialisation and knowledge transfer” will facilitate innovation and growth in advice.

Mid-June, Minister for Financial Services Stephen Jones introduced Treasury Laws Amendment (2023 Measures No. 3) Bill 2023 to Parliament, which includes measures to recognise experienced financial advisers who pass the exam, have 10 years of experience, and a clean practice record.

According to the bill’s explanatory memorandum, there are 10,030 practising advisers that were first authorised in 2011 or earlier, which is the cut-off date for eligibility of the pathway.

Citing data from the Association of Financial Advisers (AFA) and the Financial Planning Association (FPA) prior to their merger, the government estimated about 6,520 advisers with 10 years of experience would benefit from the experience pathway as they have not yet met the education requirements to remain an adviser.

It also estimated that 2,086 advisers were not intending to remain in the industry after 1 January 2026, which is the deadline for existing financial advisers with no degree to attain an approved qualification.

The Financial Advice Association Australia (FAAA) had however sought certain changes prior to the bill’s entry into Parliament. Among those was the introduction of a sunset clause, which the minister dismissed.

Namely, in a video message to the Stockbrokers Conference held in Sydney in May, Mr Jones confirmed that there would be no sunset clause.

“This bill will recognise the qualification that comes with a decade of experience, while maintaining a clean record on the adviser register. There will be no sunset clause on this qualification,” the minister said at the time.

Responding to Mr Jones at the time, the FAAA chief executive Sarah Abood told ifa that the body is disappointed.

“We’re disappointed that the sunset clause suggestion has not been included,” she said.

“However, it is a positive that advisers are getting more clarity on the operation of the pathway, and we will continue to work with the minister and Treasury to help ensure implementation is smooth.”