10 August 2022

Upcoming consultation on financial adviser professional standards

The Albanese Government recognises the importance of quality and affordable financial advice and is committed to ensuring the professionalisation of the financial advice industry.

The Government made an election commitment to remove the tertiary education requirements for financial advisers who had passed the exam, had 10 years’ experience and a clean record of financial practice. I have asked Treasury to develop a consultation paper on options to streamline the education requirements for financial advisers, including for new entrants. I expect consultation to commence shortly.

Industry has also made representations on the Code of Ethics and identified improvements that industry thinks could be made. I have heard these views and I have asked Treasury to consult on the Code in 2023, after the Government has considered its response to the Quality of Advice review.

The exam also plays an important role in supporting the professionalisation of the financial advice industry. The deadline for existing advisers to pass the exam and continue to provide financial advice is 30 September 2022. After this deadline I will ask Treasury to explore whether there are areas where delivery of the exam could be improved, such as reducing the number of questions. I continue to support the exam as a benchmarking tool which tests the practical application of a financial adviser’s knowledge, including on regulatory and legal requirements, and ethical reasoning. I remain committed to the exam testing these knowledge areas and content.