Federal Treasury has started consulting on its proposed revamp of education requirements for life insurance and other financial advisers.

Financial Services Minister Daniel Mulino says the changes would create a “sustainable and flexible pathway for new advisers to enter the profession … to help address the decline in the number of advisers over recent years”.

The 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.

Dr Mulino says the reforms ensure “continuing robust professional standards for advisers, including requirements for completing a professional year, passing the financial adviser exam and maintaining continuing professional development.

“These reforms build on the government’s Delivering Better Financial Outcomes package to help address the supply shortage of financial advisers and strengthen the industry’s ability to meet the future demand.”

The Council of Australia Life Insurers says the push to “create more pathways for people to become financial advisers … needs to happen, and it needs to happen quickly”.

The industry has also pressed the government for progress on previously announced plans to create a new class of advisers that will provide so-called simple advice.

“Australia’s life insurers want to give people more choice when it comes to their financial advice needs,” CALI CEO Christine Cupitt told insuranceNEWS.com.au. “We stand ready to answer simple questions from existing customers at no extra cost to them. It’s basic customer service.”

The closing date for submissions to the Treasury consultation is April 17.

See the paper here.