The federal government’s proposed reform of adviser education requirements has won the backing of the Joint Associations Working Group – a bloc of 11 financial services and advice peak bodies.

JAWG says the current education standard is unnecessarily restrictive, creating barriers for both aspiring advisers and existing professionals.

“There is a large, and growing, advice gap in Australia,” the group said.

JAWG says the pool of advisers has fallen from a high of almost 29,000 at the start of 2019 to 15,059 by April 9 this year.

“Unfortunately … rigid education settings have contributed to a critical shortage of financial advisers,” the group said.

“The lack of recognition of completed qualifications such as accounting, business, commerce and economics has made it challenging to attract new entrants, as they are currently required to incur significant additional costs and time to complete an approved financial planning degree.”

Consultation on the reform closed last week. The proposed new qualification standard has three requirements: a bachelor’s degree or higher; four financial concept subjects such as insurance planning; and four accredited financial advice subjects.

JAWG says the changes will add “high-quality, trusted” financial advisers by creating a more flexible pathway into the profession while maintaining strong standards.