A number of professionals in the financial advice industry have left recently or are on their way out. Pressures on the industry, including the Royal Commission and new education standards being put into place, contributes to the 10% of Australia’s financial advisers who have exited the industry in the past 12 months.
The Financial Adviser Standards and Ethics Authority (FASEA) propose that financial advisers without a degree, or who hold an unrelated degree, must complete an approved graduate diploma, in either financial planning/advice/services, accounting, finance, tax, law, or economics by 1 January 2024.
Over the long term, this new precedent will benefit new and future financial advisers. At UGC we meet the necessary university degree requirements, however, many other industry professionals are not inclined to undertake the additional course requirements and education expenses considering their years of experience are not being recognised under these standards.
The benefit to the consumer is undeniable, following incidents of misconduct that have come to light through the Royal Commission. Listen in for more of our discussion on the industry changes, and our thoughts on the impact to the industry now.
This Week’s Investor Exchange Round Table Covered:
- It is earning season in the US, with SMP 500 companies reporting their earnings for the second quarter of 2019. Listen in as Joel discusses analyst predictions on expected earnings and losses in the coming year. (18:42)
- Joel explains the ‘buy now pay later’ space in the market is performing very well on the ASX. For example, Sezzle closed its first day in the market at an 80% increase on its IPO price. Listen in for our predictions on the long-term performance of these apps in the market. (22:53)
- Brett discusses conflicting news headlines on the property market, that make it confusing for home sellers and buyers to predict what’s going to happen. Listen in for Brett’s analysis now. (27:08)
You Cannot Be Serious:
Canadian police were live-streaming a press release on a double homicide, without realising the social media platform’s ‘cat filter’ was turned on, superimposing cat features on the officers speaking!
Forever 21 have sent Atkins diet bars along with orders of plus-sized clothing to customers! Who approved of that campaign?!
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The post Episode 56: New education standards drive financial advisers out of the industry appeared first on The Investor Exchange.