Not long ago, we discussed the long-standing divide in the industry over the proposed experience pathway.
Based on a survey of its members, Financial Advice Association Australia (FAAA) found that there was more or less an even split amongst advisers as to whether the pathway should be implemented in its current form. However, FAAA CEO Sarah Abood said that the proportion in favour would increase to around 70% if two key changes were included: a 10-year sunset clause and a requirement to complete the Code of Ethics graduate level subject.
It’s unclear at this stage whether the mandatory Code of Ethics subject is being considered as part of the experience pathway, but we do have confirmation on the sunset clause: there won’t be one. Speaking via video message at the Stockbrokers and Investment Advisers Association (SIAA) conference in Sydney this week, Assistant Treasurer Stephen Jones explained that the proposed legislation “[recognises] the qualification that comes with a decade of experience” and that there would be “no sunset clause on this qualification.”
He also noted that the bill is “mostly” about “providing us time to manage the transition while we clean up the settings on education qualifications to facilitate and improve pathways for entries into the system” – and that there would be “more work” done in this area, including on the new entrant pathway, later this year.
While that addendum raises further questions – what “settings” are being “cleaned up”, exactly? – Jones’s statement does provide some clarity for those in the industry looking to take advantage of the experience pathway.
Jones also addressed concerns regarding the Government’s response (or lack thereof) to the Quality of Advice review – perhaps most notably expressed by QAR reviewer Michelle Levy, who penned an open letter wondering if her recommendations were “languishing on the [Jones’s] iPad.”
Speaking to the SIAA conference, Jones said he was “determined not to make the same mistakes as the last government,” who “[rushed] to implement things without working with industry, with a clear goal in mind to help consumers.”
“We’ve just gone through a huge Budget process,” he added. “Hundreds of decisions have needed to be made to look after Australians. But now that’s done, I’ll have more to say about the Government’s response to the review very soon.”
Last month, Jones said we could expect a response by early June.
