The Financial Adviser Standards and Ethics Authority (FASEA) has released draft guidance on education pathways for financial advisers.

Under proposed reforms, current financial advisers have until January 1 2024 to meet the degree-equivalent requirements.

FASEA has determined five pathways of education, based on the various current qualifications of advisers, to ensure advisers can comply.

Current advisers will need to undertake either a relevant degree or bridging courses, including a course that focuses on the new code of ethics.

“It is important to remember why these reforms are necessary – repeated instances of inappropriate or just plain bad advice have significantly eroded trust and confidence in the financial advice sector,” Minister for Revenue and Financial Services Kelly O’Dwyer said.

“Every adviser has a role to play in rebuilding that trust, and these new educational requirements are a critical step towards professionalising the sector.

“Ultimately, the professionalisation of the advice sector will be in the best interests of all advisers, existing and new, because it will ensure enduring consumer trust and confidence in the financial advice sector.”

Consultation closes on June 29. The draft guidance is available here.