Stockbrokers deny ‘experienced pathway’ a carve-out
The ‘experienced pathway’ is not a ‘carve-out’ or watering down of consumer protections and should not be portrayed that way, according to the Stockbrokers and Investments Advisers Association (SIAA).
What is more, the SIAA chief executive, Judith Fox has pointed at consumer groups in stating that “by certain stakeholders to advisers being ‘sales people’ with a few hours of RG 146 training” reflect “profound ignorance.
The SIAA submission said that rather than being a “carve-out” the experienced pathway “is an acknowledgement that the current education standards developed by FASEA do not work and that its one-size-fits-all approach has been a failure”.
“We welcome the extension of the experienced pathway cut-off date to 31 December 2021. This captures the experience of those advisers who provided stockbroking and investment advice during the period of market volatility caused by the COVID-19 pandemic, which also provided lived experience in volatile economic conditions,” the submission said.
“We know that certain stakeholders will persist in lobbying for a sunset clause to the experienced pathway. SIAA strongly opposes any provision introducing a sunset clause that would require advisers who qualify for the experienced pathway to undertake further tertiary education. Such a sunsetting provision is inconsistent with the Minister’s election commitment, as it simply moves the FASEA 2026 deadline to a later date, defeating the very purpose of the experienced pathway which is to retain existing advisers who have developed significant, specialised knowledge through significant on-the-job experience.”
The submission said the SIAA hoped the release of the Bill “will finally put to bed calls for a sunset clause”.
“We support the self-declaration and notification provisions as a practical way for an adviser to prove they have 10 years’ full-time-equivalent experience,” it said. “Mandated, complex and cumbersome administrative processes are unnecessary. It is also important that the adviser is responsible for declaring that they meet the experienced pathway and is held accountable for that declaration.”
“Once the Bill has passed, existing advisers should be able to access the pathway and make their self-declaration to their licensee immediately. ASIC should be directed to provide a mechanism as soon as possible for lodgement of notices by licensees to qualify the advisers.”
Sunset clause required.
55, 60, 65 yr old experienced advisers deserve the experienced pathway as they don’t have long enough time to benefit from time costs and course costs of FARSEA study.
Note: The economic opportunity time costs are 10 times more costly than the actual course costs.
Under that age or about, you have already had 5 years study time, add 10 or 15 year sunset clause, surely that’s enough time to do 6 subjects, exempt from 2.
Help make it an unambiguous profession with ALL Advisers holding education.
No one is saying education is everything (except the useless FARSEA).
But ALL true professions have higher education standards.
A sunset clause definitely is required… for the FPA’s shameful grandfathered CFPs.
The FPA is massively hypocritical in calling for a sunset clause on the experienced pathway, while refusing to do so for grandfathered CFPs.
Grandfathered CFP &
Grandfathered FARSEA pathway.
All these Grandfathering adviser exemptions should have a Sunset Clause.
As for the FPA or the FAAAAAAA, they remain eternally conflicted.
The experience pathway is for advisers who don’t have a mickey mouse “FASEA Approved” degree. Many advisers who qualify via the experience pathway will have a much higher standard of university level education than those who qualify via the “FASEA Approved” pathway.
Remember that those advisers with minimal education or learning ability have already been excluded by the exam process. It’s also interesting to note that many new entrants with “FASEA Approved” degrees are failing the exam. Every single adviser who qualifies for the experience pathway has passed the exam.
If you want to play the game you have to go to training