How do I become a Financial Adviser? | Summary and Q&A

TL;DR

Learn the steps to become a financial advisor, which includes obtaining a bachelor's degree and completing a professional year.

Key Insights

• 🏑 The education and training path to become a financial advisor involves obtaining a bachelor's degree in financial planning or a related field.
• 💦 The professional year is a crucial step in gaining practical experience and consists of 1600 hours of supervised work activities.
• ❓ The Phaser exam, established by the Financial Advisor Standards and Ethics Authority, ensures that all financial advisors meet industry standards.
• 💦 Previously, individuals could enter the industry with a diploma and gain work experience, but now a degree is a mandatory requirement.
• 🍉 The professional year takes approximately 12 months to complete, with flexibility in terms of scheduling the 1600 hours.
• 🎓 The establishment of stricter education and ethical standards in the financial planning industry was influenced by the Royal Commission.
• 💨 Bridging courses and alternative pathways are no longer accepted; a bachelor's degree is now the only way to enter the industry.

Transcript

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Questions & Answers

Q: What is the educational requirement to become a financial advisor?

To enter the industry, individuals must have a bachelor's degree in financial planning or a related field, as per the new legal requirement.

Q: What is the purpose of the professional year?

The professional year is a legal requirement that includes 1600 hours of full-time training and supervised work activities to gain practical experience.

Q: What is the Phaser exam?

The Phaser exam, administered by the Financial Advisor Standards and Ethics Authority, is a mandatory exam that all financial advisors must pass, regardless of their experience level.

Q: Can individuals enter the industry with a three-year degree in financial planning?

Yes, a three-year degree specifically in financial planning is acceptable, but it must be on the approved list of degrees provided by ASIC.

Summary & Key Takeaways

• To join the financial planning industry, individuals can pursue a bachelor's degree in financial planning or a related field.

• Completing a professional year is a legal requirement, consisting of 1600 hours of full-time training and supervised work activities.

• During the professional year, individuals must also complete 100 hours of structured training and pass the Phaser exam.