The CEO of the AIOFP, Peter Johnston, reports on the Exam extension and amendments with the Minister.

Hi, we have not given up on seeking the Exam extension and amendments with the Minister.

In recent times some compelling new information has been discovered which will be presented to Minister Jones next week in Canberra.

In addition to this, we will be pointing out the following other issues for consideration

  • Shadow Spokesperson Stuart Robert MP has recently acknowledged that the former Coalition Government poorly handled the Advice Industry and the education pathway was and is a disaster, it needs further attention in our view.
  • With the ridiculous past degree issue countered by the 10 – year rule thanks to Minister Jones, the big current issue is the EXAM October 1st ‘cliff’ date. The less than 4 – week time frame between when the results of the ‘last chance’ exam are released by ASIC and the ‘cliff date’ is totally unreasonable for unsuccessful Advisers to sell/transition their business’s.
  • If the Exam format changes post October 1st for new entrants, why can’t current Advisers that failed be given the same opportunity?
  • Opportunistic buyers will take advantage of the market oversupply and price suppression will ultimately happen. We expect these market pressures will cause further mental health deterioration that has led to 29 suicides we aware of. The Government has an obligation to protect these people from poor decisions made by past Politicians.
  • The potential conundrum of having a different Exam format for those who already have passed, those who have not, and future new entrants should be overlooked as a bedevilment of a flawed and conflicted agenda by a now totally discredited previous Government.
  • The concept for an Exam had merit when the entry barrier to our industry was low. Now that a degree and 12 – month probation applies to give advice, why should the Advice industry be the only profession to have an Exam? Especially one that is laced with vexatious ambiguity and intent to fail students.
  • The myth of poor advice standards has been totally discredited in recent times by the AFCA complaints data and the August 2019 ASIC 627 Report Paper ‘Financial Advice – What do consumers really think’, it is time Regulators and Politicians now not only acknowledge this fact but act accordingly.
  • It is now widely acknowledged that the Exam format was purposely structured to confuse and intimidate Advisers out of the industry. This terrifying reputation must negatively impact future tertiary students considering financial advice as a career path, consumers and the industry cannot afford this to happen.
  • We think 10 – year plus experienced Advisers who have left the industry in the recent past should be given an amnesty period to sit for a newly revised Exam to re – enter the industry and not be subject to the new entrant rules.
  • The industry and consumers need them back particularly with an expected volatile period of global economics on the horizon, there are an estimated 1,500,000 consumers left without an Adviser at a critical time to make decisions about their financial position and future.

We will keep you informed of any developments, but still recommend preparing for Plan B options.


Peter Johnston | Executive Director
Association of Independently Owned Financial Professionals
Suite 1211, 1 Queens Road, Melbourne VIC 3004
P 1800 111 203, d 03 9863 7574, m 0418 857 621 | Download my business card

This message is presented as a service to our community. Knowledgemaster International (KMI) or its owners and employees are not a member of any group associated with the “sale of advice” profession, any regulatory bodies, product manufacturers or hold or supply any consultancies to any government instrumentalities or lobby groups. Any actions or inactions taken as a result of reading this message are the sole responsibility of the reader.