O’Dwyer wants rid of four-day adviser ‘cowboys’
The Minister for Revenue and Financial Services, Kelly O'Dwyer has confirmed that the minimum standard for people to be able to call themselves a financial adviser is just four days' worth of training.
Explaining the reasons behind the Government's legislation imposing higher education and ethical standards, O'Dwyer acknowledged that it was "true to say that the minimum standard within the sector is in fact four days' worth of training before you hang up your shingle".
As well, she said the higher standards would help eliminate "cowboys" from the financial planning industry.
"Currently it's four days, currently that is actually the requirement but we are changing it, we're changing it with the legislation that we've introduced," she said.
"We say you either need to have a degree or be degree equivalent, you need to have continuing education requirements, you need to make sure that you pass an exam that applies to absolutely everyone in the industry so we can get rid of those people in the industry who, for want of a better description, could be described as cowboys and not the right person that you should be talking to to get expert financial advice," O'Dwyer said.
"And we're introducing an ethics component as well, so that every single financial adviser needs to be providing advice in the best interest of the consumer rather than in their own financial interest," she said.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
