Risk Regulatory Update

Consultation opens on experience pathway for advisers

The Federal Government has opened consultation on the educational requirements of experienced financial planners and those entering the industry. Advisers with 10 years of cumulative experience providing financial advice between 1 January 2007 and 31 December 2021 meet one element of these requirements. Advisers must have a clean disciplinary record on the Financial Advisers Register prior to 31 December 2021 and pass the financial adviser exam.

The current regulations require financial advisers to complete an approved qualification to meet the standard, pass the exam and comply with continued professional development requirements. Consultation closes on 3 May 2023.

Data shows that over 3,000 financial advisers may be eagerly awaiting the decision regarding the experience pathway, as they do not have a degree and may benefit from the new regulations.

FPA and AFA request delay to adviser registration requirements

The Financial Planning Association (FPA) and the Association of Financial Advisers (AFA) have submitted a request to the Senate economic legislation committee inquiry into Treasury Laws Amendment Bill 2023 to delay the financial adviser registration requirements 3-6 months.

The delay is to allow advisers time to comply. Another request in the submission was that providers are allowed to be registered on the register by more than one licensee.