The Labor Government has pushed ahead with its election promise to remove the tertiary qualification requirement for “experienced” financial advisers, as part of its review of adviser standards for the profession.

In a Treasury consultation paper released last week, it recommends that advisers will not need to have tertiary education if they already have 10 years’ full-time equivalent experience in Australia between 2004 and 2019, hold a clean disciplinary record, and have passed the financial adviser exam.

The consultation paper says the 2004-2019 period covers significant historical events such as the global financial crisis, ensuring eligible “experienced” advisers have lived experience in volatile economic conditions.

Existing advisers who do not meet the criteria to be recognised as “experienced” will need to have at most, an approved eight-unit graduate diploma or equivalent by January 1 2026.

Financial Services Minister Stephen Jones says the Government is aiming to improve the overall professional qualification framework to attract talent back into the industry.

“We begin that process with the publication of a consultation paper exploring options for improving the overall advice offering,” Mr Jones said in a statement released from his office.

The consultation paper also seeks feedback on how education standards for new entrants could be improved, allowing financial advice to continue to develop into a career of choice.

The paper proposes options to streamline the core knowledge areas for degrees, and to simplify the degree approval process and professional year.

Treasury says “experienced” advisers and new entrants must still pass the financial adviser exam if they want to remain in the profession.

“New entrants share with existing advisers the requirement to pass the exam,” Treasury says. “Due to the exam’s important role in ensuring all financial advisers hold the same baseline competency, removal of the exam is not being considered as an option in this paper.”

Existing advisers were required to pass the financial adviser exam by December last year, but some who were eligible for an extension have until next month to do so. From this October, all active existing advisers will have passed the exam.

The Advisers Association (TAA) has responded to the consultation paper, saying for financial advising to be recognised as a profession, advisers must have “relevant” tertiary level qualifications.

“The industry therefore needs to decide what qualifications are relevant, by when and for whom, as not one size fits all,” TAA CEO Neil Macdonald said.

The closing date for submissions is September 16.

Click here to access the consultation paper.