Why the consulting industry is ready for another “mass exodus” in 4 years

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In a new opinion piece published on ifa, Neil Macdonald said advisers would leave the industry en masse if the current requirement for existing non-degree advisers to have an approved qualification by January 1, 2026 was not not respected.

Mr Macdonald said that if the requirement is not changed, the next exodus “will make the current flow of exits appear like a trickle in percentage terms.”

“This approach poses enormous problems,” wrote Mr. Macdonald.

“The first is that many established counselors accepted the challenge of taking the FASEA exam and have since passed, demonstrating that they knew the answer to ambiguous multiple-choice questions that rarely had much to do with the valuable work they did. they perform for their clients.

“However, many of these advisers are older, but not old, and see no benefit in going to college for a degree that will require college education for a few more years in the industry; years of pain and red tape.

“The second is the assumption that four years is a long time. It’s not. A FASEA-approved degree, for someone who does not have existing tertiary degrees, will prudently take three years full-time.

It was revealed in September that the total number of advisers in Australia had fallen below 19,000 and in October, ASIC said transition plans for FASEA were to be liquidated and responsibilities would be transferred to the regulator in support for the recently passed Better Advice Bill. imminently.

Mr. Macdonald continued in his opinion piece that he cannot recall any other profession where participants who meet educational requirements are still required to complete graduate school in order to continue.

“We should not prevent highly experienced advisers from staying in the industry just because they can’t or don’t want to graduate,” he wrote.

“If we don’t, we will see thousands of highly experienced advisers dropping out on December 31, 2025, and that can only herald a serious new year.”

Read the full track here.

Why the consulting industry is ready for another “mass exodus” in 4 years

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Last updated: November 23, 2021

Posted: 23 November 2021

Neil griffith

Neil griffith

Neil is the associate editor of wealth headlines including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.

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