Raising education standards will not provide a “silver bullet” against rogue advisers, but change is nevertheless required, according to the Association of Financial Advisers.

“It is widely acknowledged that if we are to raise consumer perceptions of financial advisers, education standards need to increase from the minimum of a diploma,” CEO Brad Fox says in a letter to members

He says setting education standards will be a challenge, because they must cover new entrants and experienced advisers alike.

“Ideally, every adviser that undertakes further professional education will derive a personal benefit from that study.

“But I can see some advisers with significant experience may consider that completing the advanced diploma will add little to their ability or results as an adviser.”

Mr Fox calls on members to understand the need for higher standards.

“One symbol of trust the public easily understands is qualifications, and they simply believe a diploma is not enough formal education to be responsible for the… security of their money.

“If we are to win public trust and significantly grow the market for advice, then the minimum education standard must be raised.”

In its submission to a parliamentary inquiry on professional, ethical and education standards, the association calls for a phased approach.

It suggests new entrants should need a relevant degree, with this requirement phased in by 2019.

It proposes a range of options for improving current advisers’ education standards, including future study at an advanced level and a one-off competency exam.