The Financial Advice Association Australia (FAAA) is advocating for precise updates to the Australian and New Zealand Standard Classification of Occupations (ANZSCO) to ensure alignment with the educational requirements for financial advisors as outlined in the Corporations Act. In response to the ABS’s proposed changes designating financial advisors as skill level 1 occupations, the FAAA has underscored the necessity for accuracy in reflecting the statutory education prerequisites. The current description within ANZSCO fails to mirror the stipulations of s921B of the Corporations Act, prompting the FAAA to emphasize the need for its removal to prevent misinformation, particularly among prospective international students seeking financial advice courses.

Moreover, the FAAA has raised concerns regarding the classification of paraplanners within ANZSCO, highlighting a discrepancy in categorization between paraplanners under clerical and administrative workers and financial advisors within the professional major group. This misalignment poses risks, especially considering that paraplanning often serves as a stepping stone to a career as a financial advisor. The FAAA has urged for clearer linkages between related occupations to enhance data accuracy and user awareness.

While critiquing the current ANZSCO nomenclature for financial advisor roles, the FAAA has expressed support for the proposed updates that introduce a distinct unit group for financial advisors. The FAAA asserts that the revised classification better captures the essence of financial advisor responsibilities and aligns with the legal framework governing the profession. By refining the terminology to accurately reflect the roles and practices prevalent in the financial services industry, the FAAA believes that the ANZSCO revisions will benefit stakeholders seeking clarity on the qualifications and duties of financial advisors.

Recognizing the pivotal role of ANZSCO in shaping government policies and decisions, including those related to immigration and education, the FAAA has emphasized the significance of ensuring the classification system mirrors industry standards and legal requirements. The ABS’s anticipated finalization of the ANZSCO updates by December 2024 is poised to bring about a more accurate representation of financial advisor occupations and address the concerns raised by the FAAA.

In conclusion, the FAAA’s advocacy underscores the critical need for ANZSCO accuracy in reflecting the evolving landscape of the financial advice profession, safeguarding against misinformation, and enhancing the classification of occupations to align with industry standards and regulatory frameworks.