Education reforms to leave existing advisers in limbo
There needs to be a realistic increase in education standards for existing financial advisers, Pathway Licensee Services believes.
Pathway said the Government's proposed reforms on education standards for new financial advisers were clearly and appropriately set, but the requirements for existing advisers lacked certainty and would leave many financial advisers in limbo for another 18 months.
Pathway's head of governance, Phil Anderson, said his firm did not believe the introduction of a degree requirement was practical or appropriate for existing advisers.
"Existing financial advisers should be able to work out what additional education they need to do and then be able to start this additional training as soon as possible," Anderson said.
"As the current proposals stand, existing financial advisers will have no idea what they need to do and will be unable to start any further training until clarity is provided and that may be another 18 months."
Pathways noted that if the outcome was a strict requirement at the degree or degree equivalent level then there could be a substantial number of experienced advisers leave the market place, putting clients at risk.
It said existing advisers, who are currently running or working within a small business financial advice practice, will not have the time frame or the capacity to complete further study at a degree level.
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