Go to top of page

Comparing the TPB and FASEA’s experience requirements for financial advisers

Comparing the TPB and FASEA’s experience requirements for financial advisers

The Financial Adviser Standards and Ethics Authority (FASEA) sets the ‘Work and training’ (also known as the Professional Year) Standard for new entrants to qualify as a financial adviser.

The comparable requirement for TPB to this FASEA Standard is the ‘relevant experience’ requirement which financial advisers must meet to register as an individual tax (financial) adviser.
 

Summary of key differences

  FASEA TPB
Period of experience Period of required work and training is minimum one year full-time equivalent (comprising of 1,600 hours) regardless of qualifications, and must include at least:
  • 1,500 hours of work activities
  • 100 hours of structured training activities. 
Period of required experience depends on the qualifications held. It varies between the equivalent of 12 months full-time in the preceding five years and six years full-time in the preceding eight years.
Types of experience There are prescribed work and training activities to be undertaken during the professional year, aimed at developing the following competencies:
  • technical competence
  • client care and practice
  • regulatory compliance and consumer protection
  • professionalism and ethics.

FASEA’s work and training activities may not necessarily meet the TPB’s relevant experience requirements.
For the TPB’s purposes, relevant experience must include substantial involvement in providing tax (financial) advice services.  

It can include work:

  • as a registered tax agent or tax (financial) adviser
  • under the supervision and control of a registered tax agent or tax (financial) adviser
  • of another kind approved by the TPB.
Supervisory arrangements

The individual’s (Australian financial services) licensee will identify a supervisor with relevant qualifications for the individual. 

A supervisor must have at least two years experience as a relevant provider and actively assist the individual in getting the full benefit of the professional year.
The individual is taken to have met this standard when both the supervisor and the responsible licensee give a final completion certificate.

A supervisor can include a wider group of individuals, including: 
  • an AFS licensee or authorised representative
  • a registered tax agent or tax (financial) adviser
  • an employer.

Where the individual works under the supervision of a registered tax (financial) adviser or tax agent, the requirement of supervision and control includes an ‘employer-employee’ relationship. In some circumstances, it may include services provided under a contract for service. 

The supervisor must be able to comment on the individual’s ability, type and amount of experience in providing tax (financial) advice services.

Verification of experience

There are prescribed recording requirements for the individual, their supervisor and the licensee.  

The individual must keep and maintain accurate records of having satisfied the work and training requirements.

The supervisor must review and validate evidence of the individual, and the licensee must confirm, record and maintain the evidence of the individual having met the professional year standard.

The supervisor must verify the information provided in a ‘Statement of relevant experience’ (SRE) form by the individual when applying to register as a tax (financial) adviser. 

The supervisor must comment on the individual’s ability to provide tax (financial) advices to a competent standard in the SRE form.

The individual may also provide a statutory declaration with independent verification in some circumstances.

The independent verification must include a reference from:

  • an AFS licensee or authorised representative,
  • a registered tax agent or tax (financial) adviser
  • an employer (current or former), or
  • two colleagues or clients.

The above referees must comment on the individual’s ability, type and amount of experience.


What this means for tax (financial) advisers

  • The experience that you undertake to meet FASEA’s requirements may not necessarily meet our relevant experience requirements. You should consider this when developing your work plan for your professional year. For further information about our requirements, refer to Relevant experience for tax (financial) advisers 
  • You may need to gain additional experience after completing your professional year to meet our relevant experience requirements.


Further information


Last modified: 15 November 2019