The Labor Party intends to significantly relax the training requirements for existing counselors by removing the need for experienced counselors to return to university.
Speaking at the Association of Independent Financial Professionals (AIOFP) conference in Hunter Valley on Wednesday evening (December 8), Labor financial services spokesman Stephen Jones said his party would not have need advisors with 10 years of experience and a “clean record”. obtain a university degree to practice.
“The Labor government will not require you to take a baccalaureate to maintain your qualifications. We’re going to assume that 10 years of experience is worth at least a degree, ”Jones said.
Currently, Morrison’s government requires all licensed financial advisers to complete a bachelor’s degree, a hurdle blamed for the mass exodus of advisers from the industry as many senior practitioners choose to go out of business before returning to school.
Mr Jones, however, made it clear that the goodwill of the Labor Party would not extend to the review.
“To be clear, we are not going to abandon financial standards reforms, we will still expect advisors to pass their exams, meet continuing professional development requirements and adhere to an appropriate code of ethics,“ Mr Jones said.
“But sending you back to college when you have over 10 years of industry experience and a clean record is a waste of public resources and your resources.”
Also making sure to double the paperwork on advice, improving both costs and accessibility, Mr Jones said a Labor government would ‘pave the way’ for advisers’ to continue to provide the valuable advice that people need at a cost they can afford ”.
His remarks are seen as a major shift in Labor Party policy, as the party distances itself from its biggest opponent, the Liberal Party, ahead of next year’s vote.
Commenting on Mr Jones’ big announcement, the AIOFP Executive Director praised the long-awaited “common sense”.
“Finally some common sense where prior learning and experience is recognized instead of the government’s draconian and mean approach,” said Peter Johnston.
“That light at the end of the tunnel looks good.”
Last week, new figures from Wealth Data revealed that 2,062 advisers have left the industry since the start of the year, while only 144 new hires have been registered.