NEW RULES WILL RAISE THE BAR

Legislation setting out a new professional standards and education framework for planners has been passed by parliament. This means that from January 1, 2019, new advisers must pass an exam, be degree-qualified and be supervised during their “professional year” (at least 12 months of working and training) by a registered financial adviser.

There are also new requirements for existing advisers. They must:

Comply with a code of ethics (to be set by a future professional standards body) from January 1, 2020. This could be facilitated through membership of a professional association.

Pass an exam by January 1, 2021.

Attain degree equivalency by January 1, 2024.

Undertake ongoing professional development.

As well, the Life Insurance Remuneration Arrangements Bill 2016 has passed through the senate, creating a more level playing field for advisers, with no carveouts for direct sales of life insurance.