Announcement date
14 June 2023
Link to announcement
https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r7045
Problem being addressed
In their current form, the education requirements for financial advisers have failed to strike the right balance between ensuring consumers are receiving professional advice and encouraging experienced advisers to stay in the industry. Currently, existing advisers are required to have completed an 8-unit graduate diploma by 1 January 2026. The number of courses which need to be completed can be reduced through the recognition of prior learning, but years of experience do not reduce the number of units required to be completed. The Government made an election commitment to remove all tertiary education requirement for financial advisers with 10 or more years of experience and a clean disciplinary record.
Proposal
Remove all formal tertiary education requirements for existing providers with at least 10 years of full-time experience and a clean disciplinary record. This policy will recognise the value of on-the-job experience as equivalent to formal tertiary education in engendering the necessary skills and knowledge in existing advisers.
Assessed Impact Analysis outcome
Good practice
Assessment comments
The IA addresses the seven Impact Analysis questions and follows an appropriate policy development process commensurate with the significance of the problem and magnitude of the proposed intervention. The quality of the impact analysis in the IA is good practice.
Regulatory burden
The Department of the Treasury estimates there will be a decrease in regulatory costs, but the decrease will not be significant.