SMSF Association CEO, Peter Burgess, has said with the number of new entrants to the profession declining rapidly and the number of universities offering financial planning courses also declining, the current “one-size-fits-all” pathway must be reformed to attract future talent and like-minded professionals.
“The lack of recognition for existing qualifications in the current pathway, forcing all new entrants to complete an ‘approved’ financial planning qualification, deters many prospective entrants, especially if they have a degree in a related discipline,” he said.
Under the government’s proposal, announced by Financial Services Minister Stephen Jones, the proposed education standard will centre on a new requirement to hold a bachelor’s degree or higher in any discipline, with prospective advisers needing to meet minimum study requirements in relevant financial concepts such as finance, economics or accounting.
The reforms were designed to streamline entry into the financial advice profession and ensure advisers had relevant core knowledge while retaining the important role of tertiary education. It was designed to make it easier for people to switch careers into financial advice.
Burgess said building the proposal on holding a bachelor’s degree or higher would maintain the current education standard but reduce unnecessary barriers by allowing existing degrees to be considered towards meeting the new standards.
“However, while flexibility is needed, care must be taken to mitigate the risk of variation in the quality of qualifications and licensee requirements,” he said.
“It is essential advisers have the knowledge and skill they need to provide consumers with trusted quality financial planning advice.”
The association is, he said, hoping to work with the government on the details to ensure the appropriate levels of qualification, professionalism and consumer protection are maintained to help build a sustainable advice sector and meet the growing demand for financial advice in the community.
The SMSFA also welcomed the announcement that financial advisers will not be required to register annually with ASIC from 1 July 2026.
“Financial advisers are already required to be registered by the licensee so doing away with this requirement removes unnecessary red tape and cost,” Burgess said.
