Federal member for Warringah Zali Steggall has written to Treasurer Josh Frydenberg to ask him to consider how regulatory changes are impacting financial advisers, requesting an extension to education reforms.
Steggall wrote that a number of regulatory changes made in recent years are causing much distress to advisers.
In the letter, dated 19 November 2019, she asked the Treasurer to consider allowing an extension to complete the financial adviser exam to 31 December 2021 and to complete the Graduate Diploma by 31 December 2025.
A group of financial advisers who are based in Steggall 's electorate, she wrote, are concerned about the additional study they have to under the Financial Adviser Standards and Ethics Authority changes.
"Older advisers entered the profession at a time when degrees were uncommon and courses from that time are now not recognised by FASEA," Steggall wrote.
"In the case of specialist advisers, they are being asked to undertake study in areas which will deliver little value to the adviser, their business or their clients."
She also wants experienced advisers to be given credit for past CPD and to have flexibility to study specific areas that are relevant to their clients.
Steggall requested: "That risk advisers who deal only with life cover, income protection, trauma cover etc. need not participate in areas covered in the new courses such as financial markets, financial products, Centrelink, estate planning and tax."
She said the group of her constituents have expressed concern over the recommendation from the Royal Commission that grandfathered remuneration be brought to an end.
Steggall explained the group requested: "Any policy or recommendation to amend or remove grandfathered commissions requires an extended timeframe to allow advisers to adapt their businesses."
Steggall wrote that the Treasurer should consider the cost of compliance in light of new regulations and the impact this may have on accessibility to financial advice in the broader community.
Finally, she added: "The recommendation by ASIC that advisers work on a strictly hourly basis with clients is of concern as it may lead to inefficiencies and increased cost to customers."