The YES to the IFA Educational 10 year rule straw poll has swung back into the positive

It sickens me that after all that has happened to the Advice community over the past decade, we have an ‘elitist degree’ Adviser faction [well elitest in their own view] that wants to denigrate older experienced Advisers towards the end of their careers. They don’t care that 30 of these Advisers have taken their own lives or have suffered severe mental health problems over this nasty prolonged FASEA/LIF culling process.

The initial IFA Poll results indicate these Elitist types were first to register, obviously eager to get in first to vent their spleen. Considering Risk Advisers and their clients are not a threat to this elitist degree sect, one wonders why they are so callous.  It seems certain they agree with what has happened over this horrible journey, let’s hope none of them want to join the AIOFP, they are far from welcome.

The most poorly treated cohort in the Advice community over the FASEA/LIF Legislation fiasco has been the Risk Advisers, they should never had been included in with the full financial advice spectrum revue. Risk advisers only deal in around 20% of the advice information universe and to demand a Degree is just plain unreasonable.

This requirement was obviously a deliberate strategy from late 2013 under the new Coalition Government to cull Risk Advisers by certain Institutions wanting the digital advice route, I suspect they regret their actions now with the industry on its knees. Let’s hope they are hanging their heads in collective shame.

It is very apparent that Risk Advisers are critical to the health of the nation’s underinsurance circa $2.2 trillion dilemma and mitigating future Centrelink welfare payments which are well over $220 billion pa. We need Risk Advisers back in action and we need Financial Advisers writing risk business again.

A 12 month Diploma Risk only content course at best, an adjusted exam format, rationalised compliance and increased Commission levels should be immediately implemented to revive the industry with the 10 year rule the ‘icing ‘on the cake.

We are meeting with Treasury next Monday over the Experienced Pathway 10 year rule but the above will be high on the agenda with the Ministers office.

Finally, I want to point out some hypocrisy with two Associations demanding a ‘sunset clause’ for the 10 year rule. Without mentioning names but one of them grandfathered around 1,000 Advisers indefinitely who did not meet the eligibility criteria of being a CFP on the condition they paid their annual subscription fees…..wonder if these Advisers will be tolerated in the new entity?

The good news however is the Experienced Pathway draft legislation consultation process with Treasury is specifically about the proposed legislation content, the ‘sunset’ clause will not even be included or any other of the whacky ideas floating around the market.

These other Associations must also know this but are grandstanding to get media headlines at the expense of experienced Advisers mental health. This is symptomatic of too many Associations competing for attention in a diminishing Adviser market, its all about survival and self interest unfortunately.

Nothing surprises me in this crazy world we currently live in.


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

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