Government names financial advisers as core skill
Financial investment advisers have been singled out as one of the key professions in demand in Australia, with the government’s new skills list aiming to attract more skilled migrants to the sector.
In a statement earlier this week, the government unveiled its new targeted Core Skills Occupation List (CSOL) which looks at key occupations witnessing significant talent shortages. The list was informed by labour market analysis and stakeholder consultations by Jobs and Skills Australia (JSA).
Financial investment advisers were among 456 occupations to make the list, out of a list of over 700 potential roles.
“The Core Skills Occupation List plays an important role in ensuring Australia has a targeted skilled migration system that addresses genuine skills gaps in the economy, and works in conjunction with our work to train Australians,” explained Minister for Skills and Training, Andrew Giles.
There are around 15,505 financial advisers in Australia as of 5 December, according to Wealth Data, and efforts to increase these numbers have been an ongoing problem amid high consumer demand for advice.
Last month, the Financial Advice Association Australia (FAAA) announced efforts to ease Australia’s adviser shortage with the signing of an international memorandum of understanding (MOU) with FPSB India.
The move was described as an “important milestone for international cooperation for the financial planning profession” and one that will allow advisers in both countries to develop their career across borders.
One of the key objectives is to enable CFP professionals to meet local regulatory requirements when seeking employment across borders. The partnership will ensure Indian CFP professionals can access FAAA-accredited CPD programs while in India, allowing them to complete required coursework before seeking certification, or employment in Australia. Similarly, Australian CFP professionals will have the opportunity to prepare for the Indian market through local CPD programs.
Money Management previously explored whether advisers from overseas could help bolster these numbers and support the broader industry as the FAAA said it was “not seeing the high numbers” of overseas advisers numbers coming to Australia.
Other sectors of interest identified by the list included cyber security, agriculture, construction, health, and education, spanning jobs like cyber security analyst, registered nurses, university lecturers, engineers, and farmers.
JSA previously launched a draft consultation in March, addressing the temporary skilled migration system for Australia’s workforce needs.
Last year, the annual Skills Priority List, released by JSA, named financial advisers as one of 66 occupations assessed “in shortage” in 2023 when they had not been in 2022.
Addressing shortages
Another way to address the shortage is via career changers. The FAAA has announced it will launch a public campaign aimed at this demographic. This will include the promotion of the advice profession as an ideal option for career changers looking to switch jobs.
Sarah Abood, FAAA chief executive, explained: “We’re not ignoring school students, but we really want to focus on career changers as being the new entrants to the profession who are more likely to be able to be up and running quickly. They also bring great life experience and emotional intelligence and so many qualities to the profession.
“We think that’s a really important source of new [financial] planners for the future.”
In May, SMSF Association chief executive, Peter Burgess, remarked one potential source of new entrants could be accountants and teachers looking to have a career change.
“We think they can play an important, bigger role in giving advice to clients. If we are serious about bridging this gap, then we need to find a way to get qualified accountants back in the game and be able to give some form of personal advice without necessarily being licensed, although they need to hold the relevant qualifications,” Burgess said.
“This would make it easier to get licensed, but it won’t solve the problem because they have problems with the Professional Year. For an accountant to undertake the PY is very difficult as they have to be supervised by a licensed adviser, and if they aren’t working at a licensed advice firm, then that is very difficult.”
The recent second tranche of reforms under the Delivering Better Financial Outcomes legislation also discussed a new class of adviser (NCA) who can deliver simple advice for consumers. This will help Australians to receive answers to simple questions and advice relevant to their circumstances.
The NCA will be required to complete an Australian Qualifications Framework Level 5 diploma to ensure they have the expertise to provide high-quality simple advice and will be restricted to advising only on products issued by prudentially regulated entities.
They will be prevented from providing advice on more complex and high-risk areas, such as establishing a self-managed superannuation fund (SMSF).
AUTHOR
Rhea Nath
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