It also recommended the FPEC, on the advice of professional associations, set subjects on specific sectors such as SMSFs, that students can choose to complete if they wish to become a member of a particular professional group.

The report suggested FPEC have sub-panels working on the educational requirements for professional streams including financial planning, SMSFs, insurance/risk and markets.

“The core and sector-specific subjects set by FPEC should cover both the AQF level seven educational standards and the professional year to be administered by the professional associations,” said the report.

The recommendations follow submissions by industry bodies, such as the SMSF Professionals' Association of Australia (SPAA), to the PJC for education and training requirements for financial advisers to be “radically overhauled”.

SPAA said in its submission moving to an AQF level seven degree standard for financial advice training could “improve the quality of advice markedly”.

It argued in its submission that “the current education and training requirements for financial advisers have not been successful in improving the standard of financial advice or in promoting professionalism”.