Significant degrees of difference in FASEA anomaly
Some of Australia’s highest degree-qualified financial advisers are likely finding themselves at a disadvantage to those with lesser degrees thanks to an anomaly created by the Financial Adviser Standards and Ethics (FASEA) regime inherited by the Australian Securities and Investments Commission.
The anomaly lies in the fact that someone with a Masters degree obtained before 2019 will appear on the Financial Adviser Register (FAR) as having a Relevant Degree while there are those who simple financial planning-related bachelor’s degrees who will appear on the FAR as having an “Approved Degree”.
And while financial advisers and licensees may understand the situation, WealthData principal, Colin Williams believes the average consumer may not.
“I believe that when consumers go looking for a financial adviser they will be drawn towards those listed as having an “Approved Degree” rather than those with a “Relevant Degree”,” he said.
Williams said he believed it was anomaly which needed to be addressed in the interests of ensuring consumers are not inadvertently misled.
Identification of the anomaly has come as the latest WealthData analysis confirmed the loss of 26 advisers from the FAR this week, but an overall upward trend year to date.
The analysis also pin-pointed the fact that Australian Unity lost eight advisers on the NSW South Coast who appear to have moved to a new licensee, and 14 exits from Bombora Advice.
Key Adviser Movements This Week:
Net Change of advisers (-26)
Net Change of plus 23 for the start of the new year
20 Licensee Owners had net gains for 25 advisers
22 Licensee Owners had net losses for (-50) advisers
1 new licensee and zero ceased
6 Provisional Advisers (PAs) commenced and 1 ceased.
Summary
The initial numbers are disappointing after a solid start to the year. However, we can confirm that a large portion of advisers lost this week have switched licensees and will reappear on the ASIC FAR soon.
Growth This Week
ASVW Holdings continue to grow and are up by four after picking up a practice from Consultum (Insignia). Terrell C. G. Hyman (Alpine Financial Advice) a small firm that started in late 2022, picked up an additional two advisers from Synchron (WT Financial). Canaccord also up by two with one adviser coming back after a break and Provisional Adviser.
A total of 17 licensee owners had net gains of one adviser each including Viridian, MBS Advice, Marsh Mercer and the one new licensee.
Losses This Week
Bombora advice is down by (-14). However, this would appear to have been structured last year after Zurich Assure purchased the ANZ Life Insurance business, including advisers and ‘parked’ them at Bombora until such time Zurich Assure could commence its own AFSL. We are expecting the advisers to reappear soon under Zurich Assure.
Australian Unity are down by eight advisers after they lost a large NSW practice that has commenced its own AFSL. The advisers should reappear next week under that AFSL. Our members are given the details in their post. Insignia down by seven, as noted earlier, they lost four advisers to ASVW. In total Insignia lost eight advisers and gained one.
WT Financial down by three advisers and a tail of 18 licensee owners down by net one including AMP Group, Clime Group, Morgans and Picture Wealth Holdings.
FARSEA yet again proving to be a complete and utter farce.
Where is the accountability from Govt and bureaucrats for stuffing up what should have been such a positive note forward.
Oh that’s right, they are never held responsible in the real world.
FARSEA. Great call. Ha ha. Perfect title for them.
Would more correctly be spelt ‘FARCE-IA’ then I’d say 🙂 . . . at least that’s what I’ve been calling them for the past few years, deservedly.
I don’t recall ever checking my lawyer’s or doctor’s qualifications and I question how many clients check ours? I have only ever been asked once, in my entire career, about my qualifications. I was asked if I was a CFP (back in 2013?) and the reason was the Government would only reimburse plan fees, for their workers being made redundant, if the plan was done by a CFP.
Consumers never look at the FAR. It’s for industry insiders only. It’s too hard to find, and too hard to interpret. ASIC has no interest in making it consumer friendly, because they are more focused on persecuting honest financial advisers than protecting consumers.
Here here. I’ve experienced the same. People just assume that you’re qualified because you sit in an office and have a card that states ‘planner.’ When did anyone ask to see their dentist’s educational credentials before they sat in the chair?
Agreed. I had the same experience & FARSEA made CFP irrelevant in terms of recognition
This has been an issue for some time and SIAA has consistently pointed this out. It’s nice to see the issue finally being picked up. The LI’s containing the long micromanaged lists of degrees and subjects developed by FASEA which are unfair, unsustainable and unsuitable for anyone who is not a financial planner need to be replaced by a more sensible and flexible education pathway.
But is it a ChatGPT Degree?
No one looked at Melissa Caddick’s qualifications but FARSEA has definitely made a simple process impossible to work out.
The only people that look at this register is Advisers and firms that rate toaster ovens making comments about adviser movements.