Prescriptive PY produces problems

professional-year/smsf-association/marisa-broome/phil-anderson/

26 April 2022
| By Liam Cormican |
image
image
expand image

Prescriptive Professional Year (PY) requirements are hampering the advice industry in a time of declining adviser numbers, says two industry associations.

Speaking at the SMSF Association conference in Adelaide, Marisa Broome, Financial Planning Association of Australia (FPA) chair, said the biggest challenge for its 1,000 student members was cracking that first job to become qualified financial planners.

“So we haven't got a problem attracting people into the study because they can see the amazing opportunities about entering into being a professional financial adviser,” she said.

Being the holder of a licensee, Broome said she lacked the time to supervise a new entrant under the current PY arrangements.

“Do I think the PY is a good programme? In principle, I do,” she said.

“It's very prescriptive and I can't manage that so we need to find more opportunities to train them and give them the experience.”

Association of Financial Advisers chief executive, Phil Anderson, said there needed to be more done to retain the good advisers who remained in the industry.

“There are something like 880 who still have the opportunity to pass the exam,” he said.

“So we're going to provide them with as much support as possible and we can't just judge them in terms of whether they should have passed the exam. Some of them are dealing with issues around the mindset and it is not necessarily a reflection of their capability.

“Whilst we want to reduce the numbers that are dropping out, we want to make sure we're getting as many new entrants coming in as possible.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 2 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 3 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 3 weeks ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

1 week 6 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

2 weeks 4 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND