A financial services educator has warned the Federal Government against accepting all financial services degrees under forthcoming legislation.

Mentor Education Principal Mark Sinclair says exemptions in the draft financial adviser education legislation are a concern.

Enhancing adviser qualifications is “a long overdue step, critical in underpinning the professionalism of financial advice practitioners and the industry”.

“However, those advisers who have hybrid degrees should only be allowed to provide limited financial advice,” Dr Sinclair said.

“Only a fully fledged, 24-subject financial planning degree should be considered sufficient for full-service, holistic financial planners.”

He says a 12-subject masters or hybrid bachelor’s degree such as a bachelor of commerce with some financial planning subjects should not count.

The legislation should also provide credits and exemptions for study already undertaken at diploma and advanced diploma levels with at least three years’ current experience.

But Dr Sinclair says new education requirements should not become a hurdle for practitioners providing only limited advice, such as life insurance.

“While acknowledging there is angst among some sections, the reality is the financial advice industry simply cannot [otherwise] progress further and take its place alongside trusted advisers such as accountants, lawyers, doctors and teachers,” he said.

“While some important details are being worked through – such as what kind of qualification will apply to what kind of adviser – most of the Parliament, professional industry member associations and key stakeholders support the effort to create better standards.”

Mentor Education has hired researcher CoreData to undertake a comprehensive survey of adviser expectations and views.

The findings will inform the company’s bachelor of financial planning degree.