Plans to raise educational standards in the advice industry could see thousands of planners quit the industry, it has been claimed.
The Australian Financial Review
has claimed the federal government's plan to make advisers hold degree-equivalent qualifications within three years could see many advisers abandoning their businesses. A submission from the Financial Planning Association of Australia claims it will be impossible for full-time advisers to complete their degree in the timeframe proposed by the government, The AFR said.
"The consequence of this measure will be a dramatic reduction in financial planner numbers, which will impact tens of thousands of clients being left without their financial planner to service them, hundreds of small businesses closing their doors, resulting in large numbers of support staff/employees out of work,"
the submission said.
The Association of Financial Advisers echoed the FPA, the Financial Review said
"The prospect of thousands of quality, experienced advisers exiting early over the next three years is an extremely concerning consequence of the proposed framework if it is implemented without changes being made," the AFA said in a submission.