Representative bodies of financial advisers and accountants have welcomed the Federal Government’s decision to extend the deadlines for new education requirements.

The Government has granted a one-year extension to January 2022 for advisers to pass the Financial Adviser Standards and Ethics Authority (FASEA) exam, and a two-year extension until January 2026 for them to meet FASEA education requirements.

The new deadlines apply to existing advisers only. Advisers who registered after January 1 this year are still expected to meet the old deadlines.

The Financial Planning Association (FPA) and the Association of Financial Advisers (AFA) have been working together to convince the Government to extend the deadlines, as FASEA has struggled to implement the new standards.

It was originally intended that advisers would have two years to study and pass the exam by January 2021, but it won’t be available in regional areas until later this month.

FPA CEO Dante De Gori says advisers will no longer be unfairly disadvantaged by FASEA delays and is pleased the Government is listening to industry feedback.

“This is undoubtedly one of the most challenging times for financial advisers, with not only the FASEA requirements, but also the other changes that are directly flowing from the banking royal commission,” AFA CEO Philip Kewin says.

“There remains a lot to be done to ensure that sensible outcomes emerge. However, this announcement today delivers some light at the end of the tunnel for financial advisers and a recognition from the Government that it wants to encourage advisers to remain in the profession.”

The AFA is seeking changes to FASEA requirements that would recognise hands-on experience in running a financial advice practice, as well as more flexibility in study requirements.