FAAA wants easier migration pathway for advisers
New financial adviser regulatory and licensing requirements have created a ‘long training gap’ of approximately four years exacerbating the shortage of financial advisers, according to the Financial Advice Association of Australia (FAAA).
In a submission supporting the use of migration to bolster financial adviser numbers, the FAAA has argued that the complexity of the migration system has created barriers for skilled migrants and overseas new entrants from joining the profession.
The FAAA is urging that the financial adviser professional year equate to five points in the immigration points test and is suggesting recognition of study completed at Australian university offshore campuses.
The FAAA has used the current Parliamentary Joint Standing Committee on Migration to drive home it points.
It says that there is a need to simplify the migration pathway to permit the following:
- Migration points test – it is a legislated requirement that skilled migrants and new entrants must complete the professional year under the supervision of an Australian Financial Service Licence (AFSL) holder regulated by ASIC. The FAAA recommends the completion of the Work and Training Professional Year Standard for financial advisers/planners be allocated 5 points in the points test.
- Sponsored visa and Graduate visa – the criteria for these visas should be amended to reflect the globalisation of the education system and accept study completed in an Australian degree AT an Australian university (either on or offshore). Currently the visa stipulates study must be undertake IN Australia at an Australian university, greatly restricting access to this visa by skilled migrants who have completed the approved qualifications required by law to provide financial advice, but done so at an offshore campus of an Australian regulated university.
It said these recommendations will also support potential growth in Australia’s tertiary education sector by encouraging offshore enrolments.
“This approach facilitates skilled worker migration, rather than increasing Australian-based student numbers, with those students potentially leaving the country once their study is completed and training visa expired,” the submission said.
It said the FAAA supports a migration system that will help provide for the needs of Australia’s ageing population. A migration process that supports offshore training in approved Australian degrees, and offshore practical training (professional year), is critical to enable skilled migrants to arrive and commence work in their area of skill immediately. This would greatly assist in addressing the financial adviser shortage and ensure high retention rates.
Anyone who enters this industry as it currently operates , would clearly have no understanding of risk versus return.
On that basis , they should probably not be a financial adviser in any event.