Jones looks into stripping back adviser exam
A Government review will look into streamlining the education requirements for financial advisers, a ministerial announcement reveals.
The assistant treasurer and minister for financial services, Stephen Jones, asked for a consultation paper to examine how the financial adviser exam could be improved.
The consultation paper was linked to the Albanese Government’s election pledge to remove the tertiary education requirements for financial advisers who had passed the exam, had 10 years’ experience and a clean record of financial practice.
The consultation was looking at streamlining the exam for both experienced advisers and new entrants. Among the measures suggested by the minister was reducing the number of questions set in the exam.
The ministerial announcement from Jones also noted that the industry had made representations on improvements that it thought could be made to the Code of Ethics.
“I have heard these views and I have asked Treasury to consult on the Code in 2023, after the Government has considered its response to the Quality of Advice review,” Jones added.
“The exam also plays an important role in supporting the professionalisation of the financial advice industry. The deadline for existing advisers to pass the exam and continue to provide financial advice is 30 September 2022. After this deadline I will ask Treasury to explore whether there are areas where delivery of the exam could be improved, such as reducing the number of questions.
“I continue to support the exam as a benchmarking tool which tests the practical application of a financial adviser’s knowledge, including on regulatory and legal requirements, and ethical reasoning. I remain committed to the exam testing these knowledge areas and content.”
Jones added that he expected the consultation to commence shortly.
The Financial Planning Association (FPA) welcomed the Government’s announcement.
Sarah Abood, FPA chief executive, said: "In our previous submission, we called for greater recognition of relevant experience and related qualifications, and we look forward to participating constructively in this process to ensure the continuing professionalisation of financial advice.
"Financial planners currently face considerable uncertainty regarding future professional standards, and many have paused or postponed studies until the outcome is known. Hence we believe the resolution of this matter is of the highest priority. We encourage the Government to ensure the consultation process is targeted and efficient, and we are keen to see swift and decisive action by the Minister giving the profession certainty on these standards."
AUTHOR
Gary Jackson
Recommended for you
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
Compliance professionals working in financial services are facing burnout risk as higher workloads, coupled with the ever-changing regulation, place notable strain on staff.
The Senate economics legislation committee has recommended Schedule 1 of the Delivering Better Financial Outcomes legislation be passed as it is a “faithful implementation” of the recommendations.
Treasurer Jim Chalmers has handed down his third budget, outlining the government’s macroeconomic forecasts and changes to superannuation.
