The Minister for Revenue and Financial Services, the Hon Kelly O'Dwyer MP, today welcomed the guidance released by the Financial Adviser Standards and Ethics Authority (FASEA) on the educational qualifications that existing financial advisers will need to meet.
FASEA proposes that an AQF7 qualification, which is equivalent to a three year full time university degree, or an AQF8 qualification, which is equivalent to a postgraduate certificate, will be required for existing financial advisers.
"This announcement will provide early certainty around what will be required for financial advisers to meet the new requirements," Minister O'Dwyer said.
"Unless an adviser already holds a formal, approved qualification (i.e. one that is on the FASEA or Financial Planning Education Council (FPEC) approved register), they will be required to undertake some form of education leading to an AQF7 or AQF8 qualification. Advisers will be required to complete that program before 1 January 2024."
The previous education requirements, set out in ASIC guidance, allowed some financial advisers to become qualified to provide financial advice to retail consumers after only four days of training. Understandably, both the Financial System Inquiry and the Parliamentary Joint Committee on Corporations and Financial Services found that these requirements were not sufficient.
"This announcement by FASEA continues the implementation of the Government's reforms that will build trust and confidence in the financial advice industry and ensure that consumers have access to professional advisers who will put their interests first," Minister O'Dwyer said.