Labor supports FASEA extension, confusion remains

A financial adviser told Financial Standard he recently approached his local Labor member to ask that the party support the extension to the FASEA deadline, only to find it already does.

Terry Pinnell, a financial adviser and chair of the Ethical Advisers' Co-Op, said he wrote to his local member Graham Perrett about Labor not supporting the FASEA extension after seeing it reported that the party might block the extension.

At the end of August, the government announced it would extend the deadlines for financial advisers to pass the FASEA exam and meet FASEA requirements.

The proposed changes would mean advisers have until the start of 2026 to meet FASEA's financial advice qualification requirements - an additional two years on the original proposal.

Following Pinnell's enquiry, Perrett approached Shadow Minister for Financial Services Stephen Jones.

Pinnell then received this reply from his local member's office: "Graham spoke with his colleague Stephen Jones MP, Shadow Minister for Financial Services about your query who said that Labor is not currently looking at blocking the delay."

However, the office qualified this by also saying that the final legislation hasn't actually been introduced into the Parliament yet and Labor will need to examine it thoroughly when it is.

A spokesperson for Jones confirmed to Financial Standard that Labor has no intentions to block the delays to the FASEA deadlines.

The spokesperson said while Labor feels the government has been slow to implement Royal Commission recommendations; it is sympathetic to how difficult it will be for many advisers to meet the deadlines while running small businesses.

Pinnell said: "I had read in the press that Labor weren't supporting the legislation and that is why I wrote to my local member."

He wants to see Labor be clearer about its stance on the extension, saying the lack of clarity has led to unneeded confusion.

"It would give the advisory industry some certainty and take some pressure off of many advisers struggling to run businesses and do all the extra study," Pinnell said.

Read more: LaborFASEAFinancial StandardTerry PinnellGraham PerrettShadow Minister for Financial Services StephenEthical AdvisersRoyal CommissionStephen Jones MP
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