A survey conducted by Financial Services Institute of Australasia (FINSIA) regarding the Financial Adviser Standards and Ethics Authority (FASEA) education requirement proposals has revealed that around 20 per cent of members would exit the advice industry if they have to complete postgraduate study despite already holding qualifications.
Currently around 60 per cent of FINSIA members hold qualifications at the AQF 8 and AQF 9 level, which is higher than the minimum AQF 7 level proposed. Nearly 20 per cent of members said they would leave the industry if their current qualifications were not recognised, while another 35 per cent aren't sure what they would do.
Financial advisers with over 21 years' experience were the most likely to say they would leave the industry, however this may also reflect the older adviser group, who may be ready to retire anyway. Twenty-six per cent of this experiended group said they would likely leave when new requirements come into force.
FINSIA reported that there is a great deal of confusion over whether qualifications would be accepted by FASEA, particularly in those with over 21 years' experience. Academic qualifications of this group were most likely completed via the Securities Institute of Australia before 1998.
There is still time to provide feedback via submissions on the FASEA draft proposals to FASEA.