Following on from the Royal Commission all financial advisers giving personal advice have to pass an exam to stay in the industry. Anyone that fails gets booted, so the consequences are very serious. I am happy to report that both Tracy and myself passed the exam.
It is either a PASS or FAIL. The Financial Advisers Standards and Ethics Authority (FASEA) test was based around the Corporations Act Chapter 7 and the new Code of Ethics.
#below is from the FASEA website…
Along with passing the FASEA exam, advisers also need to meet a certain level of tertiary education by 2024. The new education standards are sending shockwaves through the industry with a mass exodus expected. About 2000 advisers have already pulled up stumps.
I was initially disgruntled with the new regime as it is going to cost SuperEquity a lot of time and money to become compliant. I mean who do the regulators think they are? I have 16 years experience, a Bachelor of International Business, countless accreditations and somehow got through the Global Financial Crisis (GFC). However, the object of it all is to turn advising into a proper, legitimate profession – just like being a lawyer or accountant. So I am now all for it.
We are getting a once in a generation clean out which is long overdue. Previously any Tom, Dick or Harriet could become an adviser- now it will take years of study and effort and everyone will need to reach a minimum standard.
SuperEquity is committed to staying on top of all regulations in order to provide a great service to our clients. Our mission is to continue growing an Australian financial services business that we can actually be proud of.