New Australian Laws To Cause Exodus Of Financial Planners

January 3, 2019
New Australian Laws To Cause Exodus Of Financial Planners January 3, 2019 Clive Nelson

The financial markets can be complicated for most people and that is why they often rely on the services and guidance of financial planners.

The Australian market has no shortage of financial planners but that could all change as Australia looks to bring in new laws that require financial planners need to be more professional.

These new laws would require financial advisers to hold a tertiary education related to financial planning and pass a test before they can offer their services.

This is a big change for Australia’s financial planning industry. It literally places a minimum level of education for entry and requires financial advisers to pass an exam before they can operate. This is a whole lot different from previous requirements that allowed advisers to give financial advice with just four days of training.

Though a lot of advisers agree that these improvements will make the quality of advisers better, around 6,000 of the 20,000 current financial planners in the industry are thinking of closing up shop. Philip Kewin, who is the chief executive of the Association of Financial Advisers thinks that the move towards professionalism is good, but the new rules don’t recognize the ability of financial advisers who have extensive experience and have been doing a good job over the years. If they don’t toe the line with the new laws, they will not be allowed to operate.

Kewin thinks that existing advisers should be given more time to prepare. According to the new rules, advisers are required to take the exam by 2021. They are also required to get the additional educational requirements by 2024. However, Dante De Gori, CEO of Financial Planning Association of Australia, thinks that it is fair and is doable as long as experienced advisers help out the new generation.

Dodgy Financial Advisers

Recently, Senator John ‘Wacka’ Williams compared dodgy financial planners to pedophile priests in the way they were shuffled between financial institutions. These new requirements ensure that bad financial advisers will be stopped. However, experienced financial advisers are pretty critical of the educational requirements and think that the new laws will not be able to properly regulate the industry.

Experienced financial advisers will also be hit by the changes as they will now have to make a decision to either go back to school and upgrade their skills or leave the industry. Many have decided that it is time for them to move on.

About the Author

Clive Nelson

Clive Nelson Author

Hi, my name is Clive Nelson and welcome to Traders Bible. Just to tell you bit about myself…I have been trading FX and binary options for the best part of 10 years now. After graduating with honours in economics, I began working for an investment bank in New York as an assistant trader before working my way up. After a few years, I went on to work as a broker in London, England and then eventually came back to the U.S to work in a hedge fund, where I manage $800 million of my clients’ investments. There have been times over the course of my career where I’ve had to take a hit, but I’ve accepted that losing is part of the game, it’s a learning curve. I’ve learnt from my mistakes and you don’t have to make the same errors I did. A lot of my education came from when I was a broker and this is why I’m here to tell you that Traders’ Bible offers you the foundations of how to become a great trader.

Related Articles

Binary Options Firms Face $103m Lawsuit From CFTC

The Commodity Futures Trading Commission (CFTC) filed a case recently against several binary options firms. This was made public by

EU Banks Take Up Active Intervention In Volatile Political Climate

Central banks in several European countries are closely watching their currency movements against the dollar and the euro as political

Citi turns weak on Jefferies downgrade

The impressive fiscal 2016 third-quarter results that topped the analysts’ estimates enabled the banking and finance institution Citigroup Inc (NYSE: