Forcing experienced advisers to study for degrees will produce no benefits for consumers, the Association of Financial Advisers (AFA) warns.

“It is difficult to see how consumers will benefit from the [proposed industry education] reforms, which are likely to significantly increase costs to Australians seeking life insurance advice,” CEO Brad Fox said.

“We expect to see many advisers exit the industry as a result, and that is an extremely poor outcome for consumers.”

In a submission to Treasury on the proposed education standards for advisers, the AFA calls for recognition of current advisers’ competency and track records.

It cites AFA members with long records of giving advice without breaches, who have complied with codes of conduct and who hold an advanced diploma of financial planning or greater qualification.

“The extensive knowledge, skills and experience of these advisers deserve to be formally recognised,” the submission says.

The proposed legislation calls for a standards board to determine which degrees are appropriate and set transition arrangements for advisers.

Mr Fox says this body must include an adviser who runs a practice, so it understands the needs of independent advisers.