According to new guidance set by the Financial Adviser Standards and Ethics Authority (FASEA), accountants providing financial advice will likely need to complete further mandatory training, whether operating under a limited or full AFSL.
Speaking to Accountants Daily, Fortis Accounting Partners partner, John Kalachian, said accountants who plan to provide financial advice will likely have the benefit of a larger market to pursue, as planners nearer to retirement have flagged that they’re unlikely to continue under the new standards.
“We feel like there is going to be a whole bunch of older financial planners who will soon hang up their boots depending on their current education requirements, especially with the average age of a financial planner being in the mid to late 50s,” said Mr Kalachian.
“In general, a lot of people will go out of the industry because of it but in saying that, there are opportunities there for other financial planners who want to embrace the further education standards.
“There's going to be more people requiring the need of financial planning services that aren't receiving that because there's going to be less planners.”
Accountants Daily’s sister publication, ifa, ran a poll earlier this year that indicated the vast majority of advisers plan to exit the industry after the new education standards come into full effect in 2024.
Asked how they planned to prepare for the introduction of new education standards, 75.6 per cent of the 3,536 respondents said they plan to leave the industry.
Anecdotal evidence from training organisations, like Mentor Education, suggest the exodus might not be that dramatic. The company said it’s had a “significant increase in enrolments” for diploma, advanced diploma, master and bachelor courses, as financial planners prepare for the new regime.
Jotham Lian is the editor of Accountants Daily, the leading source of breaking news, analysis and insight for Australian accounting professionals.
Before joining the team in 2017, Jotham wrote for a range of national mastheads including the Sydney Morning Herald, and Channel NewsAsia.