Proposed experience pathway may disadvantage ‘dual hat’ advisers

Under this education pathway, the only additional subject that must be studied is the ethics-focused subject that many advisers have already completed. 

Speaking in a BT Academy podcast, BT head of financial literacy and advocacy Bryan Ashenden explained that for some advisers whose pathway may have comprised more than just one single subject, the government’s proposal would result in a reduction in additional requirements.

Mr Ashenden said there are still a number of questions to be clarified, however, particularly in regards to what is meant by full-time experience.

“Many advisers wear dual hats, for example [they work] as an adviser and an accountant. Does this mean they operate full-time or part-time as a financial adviser and therefore can they qualify for this experience pathway?” said Mr Ashenden.

“Does this full-time requirement actually disadvantage those who for very valid and perhaps personal reasons have only operated on a part-time basis?”

Mr Ashenden noted that if an adviser was to work 10 out of the past 12 years, this would still work out to be slightly more than four days a week on average if those hours were spread out across the 12-year period.

“So arguably, that removes any part-time employee or part-time adviser from accessing this pathway,” he stated.

The consultation, he said, also raises other questions around fairness.

“Many advisers started their education journey early, completing more than the single ethics subject, is it fair to them that others could now have a reduced pathway?” he noted.

“Whilst the merit behind this proposal is sound as an attempt to reduce the number of advisers exiting the industry, if those advisers are exiting over the next nine months as a result of not completing the financial adviser exam, will this help? Failure to pass that exam results in the loss of an existing adviser status anyway.”