The Financial Advice Association Australia (FAAA) has expressed concerns regarding the lack of a clear career progression pathway for paraplanners in the financial advisory sector. The FAAA highlighted potential issues arising from the proposed Australian Bureau of Statistics (ABS) classifications, which currently do not include paraplanners in the standard occupation list for Australia and New Zealand.

In its submission to the ABS Australian and New Zealand Standard Classification of Occupations (ANZSCO), the FAAA emphasized the necessity for adjustments to better define the roles of financial advisers and paraplanners. The current ABS proposal categorizes paraplanners under minor and major group levels that may not align with the typical career trajectory of paraplanners transitioning to financial advisers over time.

The FAAA underscored the importance of creating a more coherent classification system that acknowledges the interconnectedness between paraplanners and financial advisers. It recommended the inclusion of “related occupations” under the paraplanner classification to provide individuals with a clearer understanding of potential career pathways within the financial advisory industry.

Research conducted by the Paraplanner Hub and Tanngo, a support service platform, revealed that approximately 20% of paraplanners aspire to advance their careers to become financial advisers. The FAAA also raised concerns about the implications of the ANZSCO classifications for international students who may not be fully aware of the stringent regulatory requirements for practicing as a financial adviser in Australia.

Furthermore, the FAAA highlighted discrepancies in the educational qualifications outlined in the ABS wording, particularly concerning the required experience for individuals seeking to become financial advisers. The FAAA recommended revising the definition to ensure accurate information is provided to prospective students and practitioners, especially international students who might rely on the ANZSCO for educational guidance.

Last year, Jobs and Skills Australia identified financial investment adviser as one of the occupations experiencing a shortage in Australia, emphasizing the growing demand for skilled professionals in the financial advisory sector. As the industry continues to evolve, it is crucial to establish clear pathways and accurate classifications to support the career development of paraplanners and ensure the integrity of the financial advisory profession.