General and consumer credit insurance brokers have been exempted from the Federal Government’s new education standards for financial advisers.

The proposed legislation will restrict use of the term “financial planner” and “financial adviser” to those who meet the new standards.

Current financial advisers will have just two years to bring their education up to degree level under transition proposals announced by the Federal Government.

At July 1 2017 all licensed advisers without a degree will have until July 1 2019 to meet the Government’s proposed higher education standards.

The legislation says the degree must be at bachelor level.

Current advisers without bachelor degrees will have to complete one or more bridging course to increase their education levels.

A new independent standards body will decide on the courses required.

Advisers with degrees must still sit a national exam to determine their competency. They will be allowed multiple attempts to pass the exam, which will not feature on the adviser register.

“If an existing provider has not passed an approved exam or completed the required bridging courses by July 1 2019, they will cease to be a relevant provider after that time and will be shown on the register of relevant providers as not compliant,” the legislation says.

Advisers will also have to sign up to a code of ethics, either provided by a professional association or a dealer group, from July 1 2019.

Codes will be approved by the Australian Securities and Investments Commission.

New financial advisers must hold a bachelor degree in a relevant subject, undertake a year of practical experience and pass the national exam to obtain a financial services licence.