Stuart Robert says advice industry ‘couldn't get itself together’ on education standards
The Shadow Minister for Financial Services has spoken out on education standards in financial advice.
Stuart Robert believes the financial advice industry has failed to correctly address education standards for some time.
Appearing on a recent Momentum Media podcast, the Shadow Minister for Financial Services said the industry is currently going through a “massive revolution” on the back of banks exiting the wealth space and heavy regulation which he believes has put the cost of advice “out of the hands of ordinary Australians”.
Mr Robert called out education standards in particular as, currently, existing financial advisers with no degree must have an approved qualification by 1 January 2026.
“So I've been doing this journey for a long time and the industry — the advice industry — couldn't get itself together on education. Couldn't agree,” he said.
“Hence, why FASEA was born. Now, FASEA is gone, thank goodness. Because where it landed, I thought was quite poor.
“I'd like to see industry own its own education requirements, come together like the broking industry did, where the players all got together and all agreed.
“I'd like to see that in financial services and in the advice industry as well.”
Mr Robert's comments come after government's consultation on the adviser education standards closed on Friday (16 September).
In it, financial services Minister, Stephen Jones, said the government would look at options to “streamline the education requirements for financial advisers”. He also addressed the 30 September deadline for existing advisers to pass the exam and continue to provide financial advice, saying that following the deadline, he will ask Treasury to explore how the exam can be improved, such as reducing the number of questions.
Speaking to ifa late last month, the Stockbrokers and Investment Advisers Association (SIAA) CEO, Judith Fox, welcomed the government's move; however, she noted some key concerns.
“The paper makes it clear that the Minister's intent is to make a broader range of degrees eligible as entry pathways. In the stockbroking and investment advice profession, the degrees that are sought are those in commerce or finance or economics — these are best suited to working in equity capital markets, given the subjects they cover.
“New entrants to our profession therefore come highly qualified, but if there is a gap of a couple of core knowledge areas, we don't want to repeat the FASEA model of making new entrants study a second unrelated degree to cover one or two subjects.
“We now have across-the-industry recognition that the one-size-fits-all model that FASEA put in place did not work. The consultation will allow us to assess how to ensure that education pathways are appropriate to different professions within the financial advice ecosystem, while embedding core knowledge areas.”
To listen to the full podcast with Mr Robert, click here.
