Super bodies question ASIC education process

Industry Super Australia (ISA) and Australian Institute of Superannuation Trustees (AIST) have stated that the move to degree-level qualifications should not go through any interim measures but rather make the switch in one movement - and questioned the relationship of a standards exam to the new proposed standards.  

The two bodies also suggested that the skills required to provide advice on self-managed superannuation funds differed sufficiently from those for Australian Prudential Regulation Authority (APRA)-regulated superannuation funds to require a new specialist knowledge section within any new training regime. 

The two groups made the comments as part of a joint submission to the Australian Securities and Investments Commission’s (ASIC’s) call for comments on its Consultation Paper 212, which covered the training of financial product advice providers. 

ISA and AIST stated in their submission they would only comment on issues of advice directly relating to APRA-regulated superannuation funds but would provide “feedback in passing on other issues where we believe that improvements could be made”. 

The two groups supported ASIC’s push for degree-level qualifications by 2019 but rejected the idea that it should be a two-step process. It claimed this would be disruptive and that education providers would be unlikely to develop any form of training that had a two-year shelf life. 

In CP212 ASIC proposed that the transition to a degree-level qualification for specialised advice would require new entrants and existing entrants who change their advice activities to be trained to an advanced diploma level from 2017 to 2019. From 2019 these advisers would require a degree-level qualification. 

The two groups also rejected the proposal from ASIC that general advice providers need to achieve a degree-level qualification, stating they saw no evidence that higher levels of qualification were necessary and to do so would impact super funds’ ability to offer general advice to members. 

ISA and AIST also questioned the timing of a proposed education standards exam. They said that if ASIC was considering such an exam it needed to describe how the exam would fit in with revised education standards. 

Earlier this week the Financial Planning Association stated it would seek in its submission the creation of an industry-wide body to set the education agenda, and request the establishment of an independent register of courses and qualified advisers. 

ASIC released CP 212 in June and has asked for submissions and comments from industry stakeholders before compiling a final regulatory guide.

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