Education standards, not the only reason advisers are leaving the industry
The Financial Planning Association (FPA) CEO believes that while current education standards in advice must be addressed immediately, it’s not the only factor in planners walking out of the industry.
Appearing on a new episode of the ifa Show, the FPA’s Sarah Abood discussed the association’s recent submission on 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 – in which it said that “FASEA got it wrong”.
“We can disagree about what those [education standard] changes should be, but I do think that they had an impact and played a part in the decisions of some advisers who have left or might leave in 2026. But I don't think it's just the education standards that are behind that,” Ms Abood said.
“For many of the people I've spoken with, they're feeling that the way the Royal Commission was addressed and the impact and the outcomes of that, they feel as if they've been loaded up with all the blame for a lot of things that went wrong in the industry completely unfairly.
“They're running great, complying, client-focused practises, and yet they're carrying this burden.”
Last year it was reported that the number of advisers in Australia shrank below 19,000 and is predicted to reach 13,000 by the end of 2023.
Ms Abood said these factors, including the “damaging publicity” from the Royal Commission and “regulatory overreach”, has resulted in the decline of adviser numbers.
“… for many of them, that's a big factor in their decision to leave and I think that many have made that decision already,” she said.
“I don't think that changing the standards now will necessarily bring a huge number of advisers back to the industry. We need to do more than that.”
Listen to the full podcast with Ms Abood here.
Tony Zhang
Tony Zhang is a journalist at Accountants Daily, which is the leading source of news, strategy and educational content for professionals working in the accounting sector.
Since joining the Momentum Media team in 2020, Tony has written for a range of its publications including Lawyers Weekly, Adviser Innovation, ifa and SMSF Adviser. He has been full-time on Accountants Daily since September 2021.
